Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-02
NEW CURRENCY LAW
URGED NEED
Congressman Fowler Warns
Nation That Disaster Must
Follow Persistence in Pres
ent Monetary Methods,

New YorR. Dec. chairman
Fowler. OF the house committee
on banking and currency, made the
following statement today respecting
the outlook tor financial legislation IN
the siXtieth congress.
There certainly should be some
remedial legislation ana | can assure
you that the members Of the commit
lee ON banking and currency viii lend
their energies 10 that end What we
shall be able to accomplish no man
can answer but that there Is urgent
need for help no man can deny.
Al the dinner of the American
BANKERS association az 81, Louis a
year ago predicted that the thing
which has happened must happen un-
less some Immediate action was taken
and hat there was not a banker In
the United states who would not re-
gret = II something was not done.
"At the close of the last session Of
congress said that the condition OF
otir finance and currency was such
that u would OF necessity lead To the
destruction OF our prosperity.
Again now dectase that " this
government continues It's present poll
ics of Injecting into the arteries of
trade and commerce a liked bond
secured currcncy-hy exchanging se-
cufities by bona speculation. by treas
ury manipulation. by executive order
OF by any other form ~ thimble-
rigging-we shall continue To move
but with greatly accelerated speed. to
ward a commercial crisis compared
with which the present panic H. only
a pleasant summer outing. our con-
dition this fan has been one Of real
prosperity, our crops are worth about
seven billions of dollars: the products
Of our mines about one billion four
NHHnHFaI million go ...,.N--s..-H
products abuut seven biliion-a total
OF twenty five billion dollars.
Meanwhile We have the advantage
of an extraordinary consumption Of
foudstutfs n are enjoying exception
ally high prices, II all this we're not
true. but ON the other hand our busl-
ness conditions had beer bad. our
Imagine what would have TRANSFERRED
Notwithstanding all this, and
wholly because of the mal-administra-
ton Of "a finances, We are In a state
ui panic.
We have today In the banks OF this
country about twelve billions Of doll
iats Of deposits aud about the same
amount OF outstanding loans. Against
this fabulous sun the banks hold as
reserve bou min hundred million
dollars, OF less than s per cent And
ui this : per cent reserve nearly one-
quarter t20o. 600, 600 ls In bank notes
"a mere credit a mere promise 10
pay.
stating IL Ia another way. the re-.
serves held against two and ono-half
billions OF u bank deposits today are
hank notes and not gold. which b. adj
WttlcdlN the only proper reserve in
uny country with a gold standard.
Yet we continue our present
policy where T. IL going 10 end Not
long Viii it be- before an OF our bank
deposits viii rest upon credit re-
.CrVee This b. obviously the worst and
widest form of imitation Yet u o.
rumurcd that sheer madness b. To fol-
Tow. that n scheme Is now being
wrought out 10 add to this already
nNerw hrlming burden and load in The
form Of state. municipal aud railroad
bonds as the basis ~ our bank cur
tcney liability. including bank notes.
"a hieh should be- gold Yet amazing
80 Il may seem. az the annual meet
ing 81 the American Bankers associa-
ton a year agu Il resolution vas intro
anted declaring that a national bank.
being secured hy government bonds
was just a. good a. q reserve as "a
areenback, % the Creonhuck b. a
lawful reserve. But his h. begging
the question. hecause the grecnback
itself r. only tolerated as reserve be-
The government stands ready al
I- NH ~ "H LNAL "AN "
security for the national bank notes.
un tho other hand ~ the 2 per cent /
government bond payable twenty-five
wears hence. which as an Investment. /
based upon its rate pf interest. would
sei Tor boa 81 cents on fhc dollar. I
IT, present price o. due Co special de-
lnand as security Tor the bank note
lssue
To suggest as u rcmed, for our
financial trouble that we add 90 tho
ilrcadT existing burden 81 uhou
90. 0nn nu0 uf bond security bank
an unlimited smount or bank
iutes based uunu state municipal OIL
Hllruad houdr viii prove The lasf
.traw 10 viii sfin further force gold
'uf 81 our cpunfrf The Neu Work.
ere of che highest character and
tuuid necessarily be- Included Yet
n those D. should BE- said thar tne 3
cent some HeafH x sold Toe ha-
weeu iin and ffl While TODAY fhoK f,
o. selling 90 81 cents sud New YORK
Ity g. finding 90 dlfheult % Goat the
iuan az 8 per eut This sort -
NATION must b. stopped Bank liahll-
'ies whether % depusiturs uf nutr-
.oldeIs must b. based upon gold not
pom nucfuaunE Credif Expansion is
imply Increasing the liabilities uf a
auk without n corresponding In
rease in ~ reserve q this may ]