The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-18
BANKERS CLASH ON CURRENCY.
NOW TO GET ELASTICITY BRINGS
OUT VARYING VIEWS.


man Fowler Speaks for Asset Currency.
ST.. LOUIS, Oct. 1.-THE principal address
before the American Bankers Association
to-day was hat OF Congressman Charles
N. Fowler Of New Jersey, chairman Of the
House Committee on Banking and Currency
For an hour he conducted what amounted
20 a financial school, answering questions
and repeating portions of his address.
He was literally applauded. particularly
when he said that the existing currency
system was born OF poor judgment, and
that Andrew jackson when he overthrow
the United States Bank was governed by
passion M supreme ignorance OF finance.
Mr.. Fowler gave review OF pending legis-
ation. He declared that IL the bankers
wanted laws enaoted they must do as
others do who want neW laws, demand
them from their Representatives.
Mr.. Fowler deemed the proposed measure
TO provide for the issue OF IS and $40 gold
certificates first in matter Of importance.
This, he said, would open the way for a
large increase in the 81 and ~ silver GER
| tiacates, the denominations most needed in
commerce. Thie measure, he said, would
make possible the destruction OF soiled
bills, which h now impossible because the
demand for them is so great that they can
] NOT De hDdTtu.
Concerning Government deposits he
said;
From the establishment Of the first sub
treasury, sixty years ago, the practice OF
boarding or locking up money has been a
disturbing factor Inc a curse to business.
Now, jumping over all the past and taking
up the situation precisely as 1t presents
itself to-day, what shall we do-go on as
before or. like intelligent men, treat TINS
Governments business just as you would
| A-onk Il wwas.a sN tNNVr Auun NAB n nnIV aylDh
distinctions as a due regard for the peoples
interests from a national point OF view
demsnds2
-Thc available cash balance July 1, 1903,
three months ago. was $4,000 600. Inc
| available cash balance October S, 1905, was
1922, OOO, 900. In other words, at the very
seas Of the year when there was a con-
stantly growing need OF money and panic
prices for its Use the Government has been
Withdrawing it from the channels OF trade
at the rate OF SIS, 900, 600 every month.
II may be asked whether the Secretary
of the Treasury has not redeposited the
money 80 withdra wn. Yes; but only on
condition that the banks would purchase
and put up specified bonds amounting to
more than $50. 900 900. 30 that the banking
capital of the country has bee depleted
| during these three months by that amount.
As a result credits have been displaced,
business seriously disturbed and no good
whatever has come to coupterbalance the
loss and havoc.
1Why should not the Government do Just
what you are doing: deposit its money
with national banks and get 2 per cent.
on its daily balances2
-Let the Government deposit its receipts
from day to day precisely as our municipali-
ties and great business interests do. III It
had pursued this policy from 1879 down
to the present time and received, as 1t had
! the right to do. ? per cent. interest upon
it's balances il would nave received $50, 000,-
600 In interest and not have lost a single
dollar.
"A. bill has been favorably reported by
the Banking and Currency and
is o pending before the House providing
for the daily current deposit of all public
moneys. 1t will depend upon your active
cooperation whether the Government shall
do ia business as the bankers OF the TWEEN
tieth century do theirs or whether 1t shall
continue to do il az Gen. jackson, inspired
by passion. in his supreme ignorance began
TO do IL nearly a century ago What will
you do? Help? Answer, yes or no." o
Speaking OF credit currency Mr.. Fowler
What we want. and this is the crux of the
whole matter, IL this: Place our pote re-
demption so located in the United States
that no banker will he out Of the use of his
money for more than twenty-four hours,
and the cost of transmission paid by the
Government. Then, bank note credits will
be sent home when their mission is filled
as directly and swiftly as now are checks
and drafts; Tor the bankers Will want the
proceeds of the note credits precisely as they
want the proceeds of their checks and drafts.
But will some one innocently inquire:
will these note credits be safe|
mo one has ever lost anything by holding
Canadian bank notes during the last fifty
years. You, you American bankers, are
lust as clever as your Canadian brothers.
II you CAM work out something yourselves,
you can adopt their plan.
The Banking n Currency Committee
| hao farnwahlv ra10rfad "a OIIrTQnOV hill fn the
House Of Representatives providing for an
issue OF credit bank notes equal to 50 per
cent. of the capital OF the national banks;
and the method Of guarantee makes such
an Issue safe beyond peTadventure."
The afternoon session brought forth the
first herald OF the widespread discussion
and divergence Of opinion or elastic cur
rency which is bound TO fash up If the
question ever gets on the floor for open
debate.
This was an attempt TO pass a resolution
submitted by an Ohio delegate committing
the association to the stand that Congress
should permit national banks to count
national bank notes as reserve.
The resolution had plenty Of supporters
and for q few minutes IL looked as though
il might pass. As il was, there was a big
volleY Of noes when the opposition got
through a motion referring the resolution
TO the incoming executive council. which
sidetracks il for the present convention.
Members of the opposition admitted after
ward that the convention came close to
taking a very radical step.
The legislative committee report will
be submitted tomorrow by its chairman,
Arthur Reynolds OF Des Moines, Ia. 1t
provides for a number of banks of issue
instead OF one central bank. favored by
the New York plan, but confines the issue
banks TO cities with clearing houses. Both
these plans will be opposed by the bankers
from the smaller cities and towns that have
no clearing houses.
II is evident tonight that the associa-
ton will not adopt any specific plan. but
will refer the matter to a special COM
mittee with instructions to submit its work
to the associations executive council
The feeling prevails that the bankers should
act with the merchants and manufacturers
and other business interests to bring about
currency reform. The result then would,
il is believed. have more influence at the
polls in electing Congressman and more
influence on Congressman when in session
at Washington.
The debate over the Ohio delegates
resolution to include national bank notes
in the reserve brought out the fact that
many present, including the chairman, did
not know whether bank notes or green
1. 49, -. bANk wwrnun naWfnnnI 1tV~wanAw