The Oskaloosa herald., 1907-11-07
CREDIT CURRENCY
TO SOLVE TROUBLE
CONGRESSMAN FOWLER ARGUES
FOR BANKERS, MEASURE.
ONLY PERMANENT RELIEF
Exchange Of Cashiers Checks for Re-
serve Money Now Floating Around
Country Required by
Nations Trade.

. ANOW 1OIhB 1NONs nat ulduCub
relief from the present monetary
stringency can be had only through
q system Of credit currency adequate
to meet the requirements of trade and
redeemable in gold coin, was the opin-
ion expressed Sunday by Representa-
tive Charles Fowler, of New Jersey.
chairman of the banking and currency
committee, which at the coming SEES
sion Of congress will endeavor to have
q law passed providing for credit cur
rency issued by the national banks.
Until such permanent ireIiefis made
possible by legislative enactment, Mr..
Fowler asserted, the situation must
be met by the issuance of clearing
house certificates, cashiers checks
and due bills of business houses and
manufacturers.
Underlying Conditions Sound.
"The underlying business condi-
tions," he said, "are essentially sbnhd,
as evidenced by the increased earn
ings of railroads and the fact that the
value Of our agricultural products this
year is s500,OO0,00O more than last
year (which was the highest year in
our history, and they are bringing to
our people about $1,000, 100000, but
public confidence has been greatly
shaken, and credit seriously affected,
therefore every patriotic citizen, from
the president down, should do all In
his power to restore that confidence
which is essential to national pros.
perity.
THE cause of the currency stringen-
cy is that there is scattered broadcast
throughout the country, at the mints,
In the wheat, corn and cotton fields,
IN the pockets OF the people or locked
up, about $1,000, 100000 of the reserve
money of the United States, most of
which, under proper condition, would
be In the banks, serving as reserve.
Temporary relief will be through the
forced use of current credit in the
form of clearing house certificates,
cashiers checks and due bills of bust
ness houses and manufacturers dur
ing the 90 days. The permanent cure
must come through system Of cred
it, currency expanding and contract
ing with the ordinary demands Of the
smaller trade. precisely as checks and
drafts do in the broader field Of COM
Hlerce E,it IS a.
Reserves Should Be In Banks.
1--WE have now preceded far enough
into the present financial crisis to
get pretty clear perspective of the
real situation.
First, the condition is now gener-
al, reaching every nook and corner
OF the country.
Second, if the gold certificates, the
United States notes and silver certifi-
Gates or the reserve money which the
banks of the country have sent into
the wheat fields of the west and
northwest, into the cornfields OF the
west, into the cotton fields OF the
southwest, into country districts of all
sections, to settle up the years bust
ness, say, II these reserves now scat
tered broadcast over the land were
In the banks where they properly be-
long, there would have been no money
panic this fall.
What Credit Currency Would Do.
IF the banking institutions Of the
country could exchange $1,000 100000
Of cashiers checks for $1,000 00, 900
of reserve money now floating around
In the mines, wheat, corn and cotton
fields, and this 81 ,O00, 000,0 900 were add
ed to the $1,000,000,00O in the banks
on July l, 1907, our bank liabilities
would be increased about eight per
cent, while our reserve would be in
creased 100 per cent.
Scotland has credit currency is,
sued by the banks that expands and
contracts twice a year at the rate of
$1.22 per capita or $5,500,000. The
same ratio would give the United
States about $1,000, 100000 Of credit
currency, but we have not one cent
of credit currency, though We need it
more than any other country, In the
world.
France has a credit currency Is
sued by the Bank of France which Is
constantly expanding and contracting
throughout the year at the rate of
s1.73 per capita, or $67,600.0o0. The
same ratio would give the United
States sl50,0OO,0 Of credit currency
Another Holiday In Oregon.
Portland, Ore. Nov. 4,-Goy. George
E. Chamberlain Saturday night issued
proclamation designating Monday, No
yemher 4, legal holiday in this state.
Mr.. Chamberlain says that he will
declare each consecutive day a holt
day until the present money famine
is over.