Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1903-07-29
CLOSING SESSION
Illinois and Iowa Bankers Have
Joint Meeting in Dav-
export.
DISTINGUISHED SPEAKERS HEARD
Asset Currency Idea OF Congressman
Fowler Wins
Favor.

The joint meeting of the Illinois
and Iowa associations was held at 10
| o'clock this morning at Turner hall
in Davenport, though it was IL O'Clock
before President Andrew Russell, of
the Illinois association, who acted as
chairman, introduced the speaker of
the day, Hon. Charles n. Fowler, of
New Jersey, chairman of the commit
tee on banking and currency in the
house of representatives. His address
was in advocation Of the asset currcn-
cy idea, the title being Essential FL
nancial and Currency Reform" Both
he and Grow. \. b. Cummins, of Iowa,
who followed, dwelt forcibly on the
idea that the "Iet alone" or "stand
pat" policy was counting inevitable
disaster and that never did the coun
try need an overhauling Of its bank
ing and financial system more than at
the present time. Gov. Cummins eu-
logiZed the formers address and
spoke of the magnificent eloquence
with which the honorable speaker
clothed his address," which may or
may not be am indication of the way
the Iowa governor is leaning on the
financial question.
Well Received.
Notwithstanding the well-under-
stood hostility of the bankers to the
idea represented by the Fowler bill
and an asset currency, the address APP
parently made a profound impression
and at is conclusion there was u tor
rent of applause which did not sub
side for several minutes. The posi-
| ton of the speaker was plain. He
defined the present national banking
system as Il gigantic speculation. He
estimated that $5j0.O0O. 900 is tied as
Il permanent investment, S15000O, 900
from the banks in the shape OF gov
eminent deposits and $40O.00O,0OO TAX
en- to secure bank notes. He held that
| his scheme of an asset currency
would unite this sum and place il in
active circulation with the result that
prosperity would be assured perma-
ncntly and the danger of panic and
| disaster reduced to the absolute mini
mum. He held that his asset currency
| idea has nothing whatever of SINH
laritf with the wildcat. Ied-dog and
other shifting circulations of ante
bellum days. and at length pointed out
numerous instances of banks founded
on that principle which had prospered
before the financial revolution during
the civil war when the eXigencies of
the occasion demanded Il speedy solu-
ton of immediate diffieulties
Has outgrown the system.
The speaker held that the nation
has outgrown the wartime financial
system; times are different; the coun-
try has practically revolutionized in
many respects and in none more than
i'm the financial aspect. The great
trust movements of the past years
and their enormous over-capit Il liza
tionS threaten disaster and an elias
tic currency is an absolute necessity
10 meet a possible crash. He pro
poses that. instead of the bankers of
the land tying up their stock in govern
ment bonds, they be given the right
to issue cashiers checks or credit
notes, thus having prior lien on
what is loaned. 1t would be quail
fed lien because ii would protect the
depositor. The assets thus made
would be unshrinkable. Government
bonds are susceptible to fuctuation.
bocr war will scarcely bring 90 today.
During the war these so-calleCt I'M
shrinkable assets, government bonds,
were worth but 80 cents on the dol
lar.
Dawes is Criticized.
Charles w. Dawes, who has recently
taken exception to some of Congress
man Fowler's statements, was hand
led without gloves and the asset cur
rency advocate at detail cited the
premises taken by Dawes and advanc-
ed arguments to refute those claims.
Fowler attributes the evolution of the
asset currency scheme to the match
less economic brain of Alexander
Hamilton, while Mr.. Dawes cites an
other founder. Said the speaker,
MIR. Dawes talks a great deal easier
when he is not talking facts than
when he is" The speakers idea was
that United States banks should be
given the right TO issue credit cur
rency equal to their capital stock, in
stead of tying that sum up in a
shrinkable asset in the shape of gov
eminent bomds. Dawes, in his criti
cism of Fowler's idea, claimed that
the wartime financial change was
born of 100 years experience, but,
Fowler declared, lit was born of the
necessity of an hour"
Interest Too High.
The representation was made that
the interest in this country was twice
as high as in foreign nations supposed
to be our commercial rivals. England,
France, Scotland and other countries
having an asset currency have an in
terest rate much lower. \ balance of
trade in this country's favor has moth
ing to do with the amount of gold ON
hand. Countries without the balance
of trade are constantly increasing
their reserve while ours is slipping
L L