The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-11

Chicago, Dec. 11.-"Labor is now paying
a penalty OF sl50.00o,o ,oo0 a year to keep
up the grotesque farrago OF our financial
and currency practices" said Congress-
man Charles n. Fowler OF New Jersey,
chairman Of the house committee on
banking and currency, I'm an address in
this city last night.
Hundreds Of thousands of men are
now idle, 100000 OF men may be idle
as the result OF present conditions" he
said. "and so long as We continue these
conditions we will constantly teopardize
the prosperity OF the people and the well
fare OF the whole country. for IL will be
an accident every fall If we get through
without n repetition of our present ex-
perieDce. bitterly intensified. too. should
the conditions ever take us when gen.
eral conditions are bad"
Representative Fowler, who spoke at a
banquet of the Illinois Manufacturers
test for the gold standard brought. con-
hdence. strength. stability, progress and
prosperity to our country, so will a cam
paign for a scientific. sound and wise
financial and currency system lead us out
Of our difficulty and protect us against
dangers and immeasurably great misfor-
tunes in the future.
LET us settle once for all that the only
proper reserve for our banks to hold is
gold COIN he said, "and that we are
most unfortunate i'm having TO carry sSf6,-
10000 OF United States notes and $780,
100000 OF silver. maintaining them upon
a parity with gold and thereby iustifying
as best We can their use as reserve. Let
us not forget that both our silver
and United States notes are serious stum-
bling blocks. though rot insurmountable
obstacles to our becoming the financial
centre OF the world. providing they may be
practically eliminated in time from our
financial calculations.
"Our reserve must he all OF the same
character. gold or it's equivalent. because
gold Is our standard of value. Our re-
serve I'm all of our financial institutions
must be adequate to prove our credits
and protect our depositors.
BANK NOTE CREDITS.
1--WE must adopt the principle of free
interchange OF banking credits and bank
note credits.
"our bank notes must spring into ex-
istence precisely as checks and drafts
do through business transactions.
!Our bank notes must be related TO and
based upon the consumable commodities
OF the country; going out with produc-
tions and coming in with consumption.
OF finance and currency now in opera
ton in this country is costing the Ameri-
can people at least $l500oo.000 annually
in addition 10 the frightful devastation
OF values incident 20 such currency ponies
as the present, which are liable to occur
at any time, IL some significant failure
should precipitate Il.
The cost TO the people OF s150,Oo0. 900
arises from the fact that the use OF all
the capital represented by the bonds der
posted TO secure our present bank notes
is lost because they are wholly unneces-
sary and I'm their present use and rela-
tlon are an unmitigated curse
THE use OF the capital represented by
the bonds deposited TO secure govern
ment deposits is also lost. as well as in
terest at the rate of per cent. upon
government deposits, which. since the
establishment of tho national banking
system up 60 the present time has
amounted to about s75.0oo0co. or nearly
twice as much as the loss 90 deposttors
resulting from failures OF national banks.
There is in the pockets Of the people
81 so, 900 OF reserve money, $1,000. 900. .Cs
OF which at least should be exchanged
for current credit or credit currency.
MORE POWER FOR BANKS.
"A law should be passed giving 10 the
national banks. the right OF exercising
In the respective states where located
all the powers of executors, adrninistra-
tors, guardians and trustees. Unless this
step Is taken the advantages now en-
j0yed by the trust companies will grad.
ually hut Inevitably compel the national
banks 10 surrender their charters fof
trust company charters. for n a trust
o0mpany is required 10 carry only one
NTH or one-hah the reserve Of a national
anord "a ,,av much hfghaf