Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1903-01-16
FOWLER 1DILI. AGAIN


sreney IA favorsof the F'pwlsr BIN 's.7roytd-
ing for the issue and circuIatio of ma.
ttonal bank notes, '55ts SO clear 81 Its state
ments and SO conclusive IA its reasoning
as to leave no excuse for inaction by
Congress at the present session. When the
new Fowler bill was FIRST reported 5-ths
Dispatch gave a synopsis OF t. and while
we stated that IT 1eii far hort OF the re-
form the business and commercial inter
segts OF the country demanded we recog-
nized that It seemed at feast 3 step in the.
right direction. TIT same time, we
entertained doubts as TO whether this, or
ID fact, any other Republican Congress
would pass It.
But the opinion Of the Journal OF Com.
merce is shared by other currency reform
papers, Republican and Democratic, and
as 1t is manifest that the measure is going
to be seriously agitated by these. and
pressure brought on Congress to enact It
into law. we again present the salient
point This we do to the end that our
bankers and business men may study them
with view to determining whether they
should exercise their influence with their.
Senators and Representatives for the pas.
sage of the bill.
Of the old Fowler bill were eliminated IN
framing the new one. The latter Is SO.
simple, that It's effects and meaning are
perfectly clear. It authorizes the issue by
national banks of circu1a ting notes--as-
set currency-up to twenty-five per cent
These notes have no relation TO the note:
issues based on bond deposit as under
the present law: they are to be supple
nentary and additional But it is pro-
vided that they; shall De secured by a
guaranty fund of s per cent in Govern
ment bonds or gold coin. or both, deposit
ed in the Treasury of the United States.
each bank to be subject to q tax of one
fourth of one per cent each half-year
on the average amount of its notes in
circulation during that period and the pro-
ceeds to be added to the guaranty fund
Also, the asset notes are to be first
lien upon the assets of the banks issuing
them.
The other most salient feature OF the
bill, is that it divides the country into
three redemption districts. the centres of
which are to be New York. Chicago, and
San Francisco. The notes issued by am,
bank shall, it is stipulated. be redeemed
on demand in gold coin over its own coun-
ter. and the bank is required to keep the
same portion OF reserve for the purpose
as Is now prescribed for the, security OF
deposits A bank receiving the notes OF
another outside of It's own district is bar
red from paying them out, but must send
which the notes belong for redemption,
or to a bank in it's own redemption city
which would have to transmit them 20
their own district. The design OF this is,
! to keep the circulation within easy reach
OF redemption and it is argued, and
soundly argued. as we see it, that the tax
would operate to induce redemption when
the currency was in excess Of legitimate
commercial and business demands and
needs.
Contraction, it is further argued, would
| follow g diminution Of demand or public
capacity TO absorb. and the logic of that
would appear convincing. It is not to he
supposed for an instant that the banks
would keep out the notes unless there
was enough demand for them to make it
profitable SO to do. Still less ts it to be.
supposed that they would Keep them out
when the operation would prove 2 losing
one.
We iterste the View we took ia our first
discussion Of the bill, that it is far from
meeting the requirements of the present
and prospective commercial and Industrial
situation. Yet none the less. the more we
study it, the more satisfied we are that
it stands for a step towards that consunl-
nation, that would seem in default of.
greater. more comprehensive and more
liberal reform to merit the most Thought
ful consideration Of our ananciers and
business men.
-------==