The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-10-17
CONGRESSMAN Fowler's Address
Abstract Of Speech Delivered Today Before American
Bankers Association at St. Louis

The following is an extract of the
address of Congressman Fowler de-
livered today before the American
Bankers association at St. Louis:
The Address.
From the establishment of the frs,
sub-treasury. sixty years ago. the
practice of boarding or locking III
money has been disturbing factor
and Il curse to business. Now, jump
ing over all the past, and taking up
the situation precisely as it presents
itself today, what shall We do; go
on as before, or like intelligent men
treat this governments business Just
as YOU would treat 1t were ii your
own. making only such distinctions as
due regard for the peoples inter
ests. from a national point of view,
demands.
The fiscal operations of our gov
eminent are such that. the coming
wear. We may have u surplus of fifty
or possibly seventy-five millions. In
deed. We may again have the same en-
cess of revenue We had from 1883 to
1892, when we lowered our bonded
debt from sl,O21 100000 to $5S5. OOO,-
600. or Il decrease of s435 900 900.
What shall he the conduct of the treas
ury? Should it not be such as in NO
way to interfere with the commercial
interests?
IF we should repeat this record, We
could pay off $435. 900. 900 of our debt,
and leave ii at s490.00O,O0O. or $685.
900 900 less than the amount now de-
posted to secure our bank-notes.
which aggregate $5l7.OO.OOO. If our
excess should not be applied to the
reduction of our debt. it would have
to be deposited from time to time in
our national banks. and the banking
capital of the country would be re-
duced by the cost of the bonds required
TO secure such deposits.
Our banking capital is now in
debted more than $15O,O00OO by this
ancient and insane procedure: and,
though 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 secure the deposits.
The available cash balance, July 1,
1906, three months ago, was $l75.0O0,-
600. The available cash balance Octo-
Der 5. 1906. was $2222,OOO.OOO. In
other words, at the very season of the
year when there was constantly
growing need OF money. and panic
prices for its use, the government has
been engaged in withdrawing it from
the channels of trade at the rate of
Biz 000 001
600 for the months of July, August and
September.
1t may be asked whether the secre
tary of the treasury has not re-de-
posted the money so withdrawn? Yes;
but only on condition that the banks
would purchase and put up specified
bonds amounting to more than $780,
100000; so that the banking capital
of the country has been depleted dur
ing these three months by that amount.
As a result, credits have been dis
placed, business seriously disturbed,
and no good whatever has come 10
counterbalance the loss and havoc.
Why should not the government do
just what you are doing; deposit it's
money with national banks and get
two per cent on its daily balances?
"On September 4, 1906, the national
banks had on deposit with national
banks over $830000,00O, or seven times
as much as the government had; and
were undoubtedly getting two per
cent interest upon it. The state banks
and bankers had on deposit with the
national banks more than 1881, OOO, 900,
and were undoubtedly gettingytwo per
cent interest upon it. The trust COM
panies and savings banks had on de-
post with the national banks upwards
of $346,00,000, and were undoubtedly
getting their two per cent interest In
other words, the banking institutions
OF the country had on deposit with our
national banks more than $500 ,OOO,-
900, or more than ten times as much
as the government had; and yet the
government by its practices would
have us believe that although it has
the power of supervising and knowing
all about the management of every ma
tional bank in the country, it cannot
safely do what probably every bank
ing institution in the country is do
ing without any special information at
all.
Let the government deposit its re-
ceipts from day to day precisely as
our municipalities and great business
interests do. If it had pursued this
policy from 1879 down to the present
time, and received, as it had the right
to do, two per cent interest upon it's
balances, it would have received $780,
100000 in interest. and not have lost
a single dollar. A bill has been fav-
orably reported by the Banking and
Currency committee and is now pend
ing before the house of representatives.
providing for the daily current deposit
of all public moneys. 1t will depend
upon your active cooperation whether
the government shall do it's business
as the bankers of the twentieth CEN
fury do theirs. or whether it shall con-
tinue to do it as General Jackson, in
spired' by passion. in his supreme
ignorance began to do it nearly
century ago.
During the present crop-moving
period, there will be taken from the
q o @ o o @ o o @ O o O O O o O. O d