The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-01-29
asset CURRENCY" BILL.

WASHINGTON DISPATCHES an
~ nounce that the Fowler currency
bin is almost sure to be passed by the
lower house of congress this week
This much discussed measure has been
made a continuing order, beginning on
Wednesday. A continuing order is an
order that has the right of way over
all other proposed legislation until it
has been disposed Of. Friends of the
Fowler bin admit that they will have a
fight on their hands before they sue
coed in enacting it into law, but they
claim to have enough votes to pass it.
In the latter assumption they are
probably correct, for any bill which is
calculated to aid the money merchants
Of the nation is always sure of favor
able consideration at the hands of a
Republican congress. The Fowler bill
is one of the most pernicious pieces of
legislation that has ever been at
tempted. Under the plea that a more
elastic currency is needed, Congress-
man Fowler proposes to turn over to
the bankers of the country the credit
Of the United States to do with as they
will
So thoroughly were the meretricious
features of the measure ventilated dur
ing the last session that, in view of the
election then imminent, the hackers of
the bill allowed it to repose in a COM
mittee pigeonhole until more season
able time. There is no congressional
election scheduled for this year, the
memory of the voting public is not
very long. and so the tasset cur
rency' people feel that they will be
perfectly safe now in placing the law
on the federal statutes.
The most important feature of the
measure is. contained in the first sec
ton. which provides that ANY ma
tional bank may. with the approval Of
the comptroller of the currency, take
out for issue and circulation an amount
of bank notes not exceeding % per
centum Of its paid-up and unimpaired
capital without depositing United
States bonds with the United States
treasury in the manner provided by
existing law
In the event that the bank issuing
such notes fails. the notes are made a
pAGAGAANu NAd1lAA dSoiiSl the assets VI
the defunct institution. In other words,
the notes and collateral security held
by banks are to be made the basis for
currency issues guaranteed by the
United States government. The pos
sibilities of this provision are admir-
ably summed up by Charles G. Dawes,
former comptroller Of the currency. He
says:
I'VE do not want an asset currency
that will help us into a panic when
we are out of one, but an emergency
currency that viii help us out of a
psnic when we are in one" It is clear
that if the bill is passed the banks viii
be abe to enlarge or diminish the cir
culation as they see fit. They can is
sue notes and, in the event of their
failure, they can put the government
to endless trouble to collect on them.
All bank assets are not Immediately
available as cash. Months are often
to turn their securities into
money, and in the meanwhile the gov
eminent will hold the empty sack
There are other Objectionable features
in the Fowler bill. such as the branch
banking section and the provision for
the retirement of the greenbacks, but
it is idle to hope that this congress
will eliminate them.