New-York tribune., 1903-01-14
FOR ASSET CURRENCY.
Mr. FOWLER'S C4MP4IGN
Has BIZ FdUorabiy Reported to
the House.
Tsv TELEGRAPH TO THE TRIBUNE. J

III
Washington. Jan 13.-Representative Fowler. Of
Nev-Jersey. chairman OF the House Committee on
Banking and Currency. has begun an active cam
psisn for legislation this session Of Congress
which will provide elastic currency, and do il
II UI1e 70 meet the demand next fail for crop
moving money To this end he died in the House
lsfe This afternoon q report from his committee
recommending the passage OF his Currency bill In
explaining the provisions Of the bill Mr.. Fowler
SAYS the whole question OF currency legislation
may be summed up in these self-evident truths;
First-That there IS an exigent demand for some
provision TO relieve the present situation il
source Of commercial crisis.
second-That neither silver nor gold nor United
can De proper source Of a safe economical and
Third-That IN the six billions Iiquidated
% & ogr national banks there is an incompars, pie
our trade demands. and that currency can be
LILY elastic that Goes not spring into being at the
when that business is finished
II stating in simple language exactly what the
elastic currency bill VIII accomplish he says that
under II national bank having capital of 100000
could issue notes amounting TO s25.00O When na-
tional bank which has in its possession its
notes receives the notes OF other banks Will i'm
nedistely forward them for redemption. because by
Going il build up its reserve in the redemp-
ton city obtain the cash for them and loan its
notes in addition.
When a bank has loaned down to its required re-
serve and has in vault s5O 600 Of its notes II
2 receives S5.eN OF the notes OF oIher DanhS ana
$50 IL gold coin other legal reserve money.
what would il DC? Would 1t loan this S.0o0 Of notes
II could against the S1250 Of legal reserve
Just received would il send the 5000 Of notes
for collection? It would send them for collection Of
course. because by SO doing II could obtain sUfi
reserve the $4,000 Of its notes
lying idle il its vault No bank would loan
the notes OF other banks long as its own
idle but II is probable that the whole OF
the proposed issue would find occupation in the
coming fall and as certainly be practically ali
tn the succeeding spring months. The adoption
of this principle Of note issues if other disturbing
factors were eliminated. would end al currency
paaics and bring the same coordination between
bank notes and the needs OF trade that now exists
between checks and drafts and the business trans
acted by them When this is cone more will ever
he heard about emergency circulation. for in a
nightly constituted system every dollar that goes
ont is as euergent as every other dollar. and the
fact that any particular dollar goes out Is not a
danger signal when the only occasion OF its gong Is
hat il is needed in the commerce and trade OF the
Rgg2reseatztive Fowler gives che net increase Of
banks as s1zIe16S5S. If all should avail them
og6 ss5gsS S5 ad6ed d to s Dank tT cuTrency
ron which should be deducted $50 2o2 4SS. the
3 per cent OF their capital, which amount Of the
present aotes c9uS ~ @ % TeJreo "qon a +b sf
Touid issue these notes when needed, Mr- Fowler
SAYS, there can be no possible doubt -
realizes that United States bonds will no longer
furnish su1neient basis Ier an aoeqlsoe s-25.Z -
o. currency, even though that 1oTTn OF currency
we're profitable. which II is not Indeed were II
o~ F % t s Peas 2. te 6aRR would now Be re-
firing their circulation because Improbable at the
by law and this. TOO, IN the face Of a constantly
Increasing demand for more banknotes.
.o, the Connrnittee on Rules for the consideration
of his bill in the House at an early date