The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1907-11-07
CREDIT CURRENCY
AEEDEn-F0M 81
New jersey Congressman De
ciares 1t Will Afford Perma-
nent Neutrality-suspicious..

New York. Nov. 6.-That permanent
relief from the present monetary strin-
gency can only be had through d sys-f
tenn of credit currency adequate to
meet the requirements OF trade and re-.
deemable in gold coin was the opinion
expressed today by Representative
Charles Fowler, of New Jersey, cnair-
man of the banking and currency COM
mittee, which will, at the coming ses-.
sion of congress endeav or to have a
law passed providing Cor credit cur
rency issued by the national banks.
Until such permanent relief is made
possible by legislative enactments Mr..
Fowler asserted the situation must be,
met by the issuance of clearing house,
certificates, cashiers checks and due
bills of business houses and manufac-
turerS.
The underlying business conditions"
said Mr. Fowler to the Associated Press
today, are essentially sound, as evil
denced by the increased earnings of
railroads n the fact that the value of
our agricultural products this year are
$500, 000,0 900 more than last year (Which
was the highest ear in our history
and are bringing to our people about
$1,000, 10000, but public confidence has
been greatly shaken and credit seri-
ously affected. therefore, every p;ttri-
otto citizen. from the president down,
should do all in his power to restore
that confidence. which is essential to
national prosperity.
The Banking Power.
Mark this: The banking power o
the United States III 1890 was abou.
$1,000, 100000 and now exceeds $16.000,-
100000, or equal to the entire baking
power of the world in 1890. which Null
hall placed at 1885, 900, 900. Today
the banking power of The entire world
outside of the United States is only
S21,952.000, 600, and Of tI.is amount 20
per cent, or more than $4,000, On0, 1000, is
in cashiers checks or current credits.
That is, credit currency. And vet while
the United States has thTee-sevenths OF
the banking power of the entirre world
it has not one single dollar of currency
bank credit, although the four-scyenths
of the worlds banking POWER has the
advantage of $4,000, 900, 900 current
credit currency.
"On the same basis we are entitled
to have $4,000, 000, 900 of currency credit
of credit currency.
IF this principle We're broadly
be, our bank reserves might be in
creased from an average of 8 92-100
per cent. to about 20 per cent, and
our banking liabilities remain practi-
oally the same.
Can any one give a single reason
My We iloulu use q ClicCk. DOOh y
credits for order and not use a cur-
rency credit Of the same book IN which
we draw IL checks? Is not the CASH
ier's check just as good as our check
on the same bank-indeed, far better
when protected, as it should be, by
a guarantee fund with the United
States government many times more
than ample to insure it's redemption in
gold coin?
An 8 Per Cent. Increase.
IF the banking institutions of the
country would exchange $1,000, O00, 900
of cashiers checks for $1,000, 900, 900
of reserve money now floating around
fields, and this $1,000, 900, 900 We're
added to the $1,000. 100000 in the
banks on July /, 1907, our bank liza
bilities would be increased about s
per cent, while our reserve would be
increased 100 per cent, and instead of
per cent, 1t would be 20 per cent, and
this end alone is sufficient to justify
the adoption of the principle Of cur
rency credits in this country.
Scotland has a credit currency is
sued by the banks that expands and
contracts twice a year at the rate of
Sl.22 per capita. or SIS $500, 900.
The same ratio would give the
United States o 81, 900, 00O,0 900 of
credit currency, but we AVE not l
cent OF cTedlt currency, thOuSh we
iced it more than any country in the
world. France credit currency is is
sued by the Bank of France, which is
constantly expanding and contracting
throughout the year at the rate of
si.73 per capita, of $67, 600, 900.
THE same ratio would give the
United States $3.50, 600, 900 of credit
currency.
Canada has a credit currency is
Sued by the banks that expands and
contracts at the rate Of 1929 per
capita every fall, or $25, 900, 900.
The same ratio would give the
United States $3.50. 900, 900 Of credit
currency. But We have none"