The Washington herald., 1907-11-05
CurrencY Reform.

Although there will be no extra session
for the discussion Of financial legislation.
IL is becoming daily more obvious that
currency reform will occupy larger space
in the regular Congressional legislative
programme than had been anticipated
before the Wall street furry. 1t may be
reasonably expected, too, that the Pres
ident viii give It more prominence in
his annual message Of this year than he
did In his message Of last December. in
which he declared there must soon be
revision of the currency laws, because
10 leave them as they are means to
incur liability Of business disaster" Mr..
Roosevelt declined. however. TO press
any particular plan of currency reform,
merely calling attention TO the credit
currency scheme. and expressing his be-
lief that there is need for the adoption
OF some system which shall be auto
matte and open TO all sound banks. so
as to avoid all possibility OF discrimina-
tion and favorItism." The lesson Of the
financial stringency cannot fail to i'm
press Mr.. Roosevelt, as II has the coun-
try. with the necessity Of some change
in the currency system that shall make
it more adaptable 10 seasons and emer-
gencies.
Chairman Fowler, of the House Com
mittee on Banking and Currency. offers
timely presentation Of the case for a
credit currency, OF which he is the ablest
and most persistent Congressional advo-
cate. Mr.. Fowler shows that the tenn
porary measures now being taken by
bankers throughout the country for the
relief Of the financial stringency are
based on precisely the same principle as
the credit currency he has been advo-
eating for the past twelve years Clear
ing-hOuse certificates. and the cashiers
checks and certificates which are being
used in some localities as substitute
for currency, have no better security
than an authorized credit currency: in
fact not as good for the credit cur
rency would be backed up by a guar
antee fund deposited with the United
States government. insuring it's redemp-
tion in gold coin. Bankers. as Mr. Fow-
Ter says. are In reality issuing enforced
currency credits" without warrant Of
Law, to meet a dire necessity. II is a
justifies the issue OF bank credits in an
emergency like the present-credits of
no higher security than an authorized
credit currency-but refuses TO sanction
the issue OF credit currency under gov
ernment supervision, safeguarded by a
guarantee fund and by a progressive tax
insuring its retirement when no longer
needed
For there are millions Of people in
the country who are suspicious of every
project for currency reform that is ac-
ceptable TO the banks. Wasn't my So
cent dollar bad enough?' facetiously
asks Mr.. Bryan. Must we now have a
dollar without any sense behind It at
alp And he predicts that the President
will lose popularity by advocating an
asset currency. John Sharp Williams
likewise pokes fun at a credit currency
as unsafe and precarlous; but it is just
such a currency IN the form of clearing
house certificates and cashiers checks
that Is keeping many of our banks and
industrial enterprises going, as Mr. Fow-
Ter so aptly shows. We must get over
the idea that bankers are Of necessity
enemies Of the country. and that their
expert advice should be ignored and
sneered at as selfish and malignant. They
have performed a service Of extraordl-
nary value to the people in the existing
crisis, and all that they ask of Congress
is that they shall be given the tools
wherewlth to render such service. when
future occasion arises with the sanction
OF law, and under such legal restriction
as experience has shown to be desirable.