Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-18
FOR CURRENCY REFORM
CHAS. N. FOWLER TELLS BANK
ERs OF PENDING BILLS.

One of the most important addresses
made at the bankers convention in st.
Louis yesterday was by Charles A. Fowler,
chairman of the banking and currency
committee of the House of Representatives.
He spoke on Pending legislation and
told of some of the important bills dealing
with currency reform that will be disposed
of at the coming session. In the course of
his speech Mr. Fowler sad:
God is truth Truth in finance Is materi-
allied honesty; and that kind of honesty 1t
was that demanded that our measure OF
value should be the same in the payment OF
oblgations\ that was contemplated when
they were contracted; that having been
gold 1t was goodness to pay our debts in
gold measure Today everybody, I think,
thanks God that we adopted that standard
even all the followers of Mr.. Bryan.
Cleanliness Is next to goodness; therefore,
| let us fight to make our money as clean as
1t is good. And let me say right here that
you will get nothing in the way of legisla-
ton unless you, as bankers, not merely as
men, interest yourselves in demanding that
your representatives vote for the things you
want.
First, then. let here and now resolve
that we will have clean money, and pledge
ourselves to one another that we will not
stop until we have secured such legislation
as will bring this end about. Such law is
now pending before the banking and cur
rency committee. It will become a law IT
you demand 1t and work for 1t.
A bill has been favorably reported by the
| banking and currency committee and is now
pending before the House of Representa-
tives providing for the Issuance of IS and
$40 gold certificates as well as the present
denominations. The purpose OF this bill Is
twofold. First. 1t would enable the Secre-
tary Of the Treasury to supplant portion
Of the $500 OOO. coo Of S. silver certificates
with gold certificates Of the same denomina-
ton, and THUG make 1t possible to increase
largely the 81 and 81 silver certificates,
which are needed SO much in the trade of
the country.
The second object Of this measure Is to
broaden the basis OF the standard Of value,
increase the quantity of gold In the country,
and make 1t possible to distribute 1t among
the mass of people. thereby generalizng its
use as well az Strengthening our reserves.
These objects justify your active and insist
ent cooperation. Don't forget 1t. will you?
Possible Surplus
The fiscal operations of our government
are such that the coming year we may have
a surplus Of fifty or possibly seventy-five
millions. Indeed. we may again have the
same excess Of revenue we had from 1888 to
1892. when we lowered our bonded debt
from 81 ,O21 100000 to $685., 100000. or a de-
crease Of $435, 000.O 600. What shall be the
conduct of the treasury? Should 1t not be
such as in no way to interfere with the
commercial interests?
II we should repeat this record, we could
pay off $435, 900 Of our debt and leave 1t
at $3.50 OOO, 900, or $25, 600. 600 less than the
amount now deposited to secure our bank
notes, which aggregate SSH. 100000. II our
excess should not be applied to the reduc-
ton Of our debt. 1t would have to be depos-
tied from time to time in our national banks.
would be reduced by the cost of the bonds
required to secure such deposits.
Our banking capital Is now depleted more
than 100000 by this ancient and insane
procedure and, although the government
has control of this money, it is paying two
per cent upon it. for the interest paid on
the bonds held by the government goes to
the banks that have put up the bonds to Sc
cure the deposits.
The available cash balance, July 1, 1906
three months ago. was $175.0 COO The
available cash balance October 5, 1906, was
500, 600, 600. In other words, at the very
season Of the year when there was con-
stantly growing need of money, and panic
prices for its use, the government has been
engaged In Withdrawing it from the chan
nels Of trade at the rate OF $15, COO. 600 every
month. or $47.0O0sO0O for the months Of
July, August and September.
1t may be asked whether the Secretary
of the Treasury has not redeposited the
money so withdrawn? Yes; but only on con-
dition that the banks would purchase and
put up specified bonds amounting to more
than $50, ZOO 600: SO that the banking cap
ital of the country has been depleted dur
ing these three months by that amount
AS a result, credits have been displaced.
business seriously disturbed, and no good