Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1907-12-06
afashington s tandard
OsYNPIa, Wa>H.
RElpiI MORNING. NECLNbEE &. 1907.
The Administrators Mistake.

The Administrator Mistake.
Attention has been called I" II
speech Of representative Charles y.
Fowler. Chairman OF the llou>" ON
mitt,r ON Banking and Currency.
which. coming as il does. from Il stat
wart Republican. is Il turcihr and
convincing Arrangement of tn" Nd
mipi>tratiun against tn" issue ol
Treasury certificates. on the ground
that there has been no need To IN
crease the interest hearing debt. and
it establishes bad precedent. which
NAV lead to still more reckless stock
iobbing. He declares that the az
ton of the Administration is sur
prising. extraordinary. unwarrantcd
and unfortunate. He claims that
th. crisis of the panic had already
passed when our benign Secretary
Cortclyou rushed in. against the
opinion OF the best Judges. realizing
as they did that the bankers had the
eXigcncv we'll in hand by the pir-
chase of foreign gold at an excessive
premium. The Government, he holds.
does not need the money, us it had
S24o. O00. 900 to its credit taken from
the people by taxation. and there
fore the interest -bearing-debt of the
Government should not have been
increased, especially when such in
crease is clearly in violation of the
intent of the law. Again, the action
of the Treasury is Il most fragrant
violation of the economic conditions
for which the people will have to
pay the penalty.
There is danger that when the re-
serves come in to the Treasury. this
same issue of bonds will be converted
into bank notes. and they will not
disappear but be automatically re-
stored, and find place in the re-
serves of the many State banks,
in those of the trust companies, and
to some extent-though they have no
right to them-in the reserves of the
National banks. Now" said the
eminent speaker, Mark this: That
every bank note held as as reserve
will displace just that amount of gold
and drive it out of the country.
That is just what our silver pur-
chases did from 1879 to 1894. The
poorest money always has and invara
bly, will drive out the better. There
will be upwards of l per cent profit
on the circulation taken out on these
bonds, and so the banks will force
them out persistenly and the count
erpart will be that noiselessly, i'm
perceptibly but with absolute GER
tainty, the gold will give place to the
bOnd-Secured note to the extent that
it finds its way into the reserves of
the various financial institutions of
the country.
During the next few months you
will note this strong contrast between
these bond-secured notes and the
credit currency expressed in clear
inn bn,,co ooct Goo toe opI oocb;nrc'
checks-that while the bOnd-secured
notes will remain tOperplex and curse
us in the future by not contracting
to the extent of single dollar from
January to July, every dollar of cred
it currency, in the form of clearing
house certificates and cashiers checks,
which have come into existence nat
urally with great urgent need, will
disappear when they are required no
longer.
To-day we have $24O, 600, 900 in the
banks, and therefore, by any fair in
ference of intent of the lawmakers or
construction of the statutes, the sale
of these certificates is unwarranted.
He declares furthur that he is not
aware of any statute by which they
can be construed to be law
full basis for bank-nOte circulation.
However this may be. the most I'M
fortunate incident, to his mind, is
the fact that they are to be printed
in the Size of our present bank bills
and coin enthusiastically with
the intent and purpose that they
would circulat. as currency. Under
the circumstances assert, says he,
that the action of the Administra-
ton was certainly surprising to any
one who was at all familiar with the
banking situation on Friday, NOvem-
Der ID, considering the fact the Gov
eminent had $24O, 900. 900 in cash on
hand and would not have any more to
speak of Immediately after the bonds
were sold. 1t was certainly extraordi-
nary, it was umwarranted in increas-
ing the National Understanding
debt $3.50, 900, 900 and it is most I'M
fortunate from every point of view,
especially economically"
CLOTH NOT LARGE ENOUGH TO
COVER THE TURrITUDE.-Rev.G George
q. Ware, formerly rector of the
Episcopal church at Deadwood, S. D.,
will probably have to spend year,
from the 18th inst, in Douglas eoun-
ty Jail, after exhausting all the re-
sources for escape, except that of
pardon, and for asking that he has
only one plea to make, indignity to
the "clOth" Ha b,c hoo,, +,.;od .o,,