Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-11-22
The Move for an Elastic Currency.

! national government, mas peel pIdcii'
cally relieved and is passing into his
! tory. the attention of the country is
| centered to large extent upon the
! need of a more elastic currency that
shall meet the exceptional demands OF
the crop moving period. Good crops
are the natural basis of a healthy
national prosperity; but so large are
those raised in this country that the
immense amount of currency needed to
move them from the harvest fields
and distribute them to the consuming
public both at home and abroad, be-
comes an annual drain upon the
currency resources of the country not
outstanding the fact that they are
vastly larger than those of any other
nation in the world To be sure this
demand is purely of a temporary
character. II is practically over by the
first Of January with the result that
the immense sums so employed find
their way back again into the banks,
together with vast sums paid by
Europe for our agricultural exports.
easy. This continues to be the case
until another crop moving period
makes it's annual enormous demand
upon the country's currency. The
conviction has now become very
general that our currency system
should be sufficiently elastic to provide
for all the demands of the crop moving
period without necessitating the with
drawal Of money from other channels
of industry. where it may be needed
for the transaction of business
While this is true, the fact remains
that any currency designed to meet the
stress Of the crop moving period. or of
other exceptional and temporary condi
tons of business, must be of a
character that will automatically in
sure it's retirement from circulation
when the special stress that called it
out shall have been met and passed.
To permit it to remain in use for a
longer period would be to invite all the
evils that follow in the wake of a
redundant currency. Good financierS,
currency can be devised that will easily
take care of the crop moving period
demands of the business world, and
Immediately retire from circulation as
soon as its work is accomplished. a
number Of excellent plans have been
proposed for bringing about this re-
suit. Nearly all of them have merit
1t is of little moment to the country at
large which particular one is adopted
go long as it is capable of bringing
about the desired results. Congress-
man c. n. Fowler of New Jersey, the
able chairman Of the House Committee
on banking and currency, has given a
large amount Of thought and investiga-
ton 10 this question. For ten years ne
has been an earnest advocate of
credit currency, for the meeting Of
crop moving and other temporary con-
dtions of special financial stress. 1t
to find behind him, at this time the
strong backing of the great conserva-
tive forces of this country, brought by
the lessons of experience, to a clear
and intelligent appreciation of the
soundness of his views
In recent interview Mr. Fowler
said:
1T is perfectly obvious to any one
familiar with the conditions and the
laws affecting banking credits that the
present financial status is distinctly a
currency and not a capital matter, and
that. if the banks of the United States
had had the lawful right to convert
handbook credits or deposits subject
to check into bank note credits or
credit currency, there would have been
no perceptible knowledge of the fact
that we We're moving agricultural pro-
ducts this fall to the value of upward
of $1,000. 900, and there would have
been no change in the business condi-
tons of the country at ali, for they are
essentially sound. and there has been
no perceptible overprOduction any
where.
THE products of the country out
side of agricultural products amounted
to over $4,000. 100000 more. Further
than this it is absolutely certain that
if the clearing houses and banks
throughout the country had i'm
mediately and without hesitation met
the demand for currency by issuing
81, 81. 81. SO and $50 certificates and
cashiers checks of the same denomna-
tionS the conditions we have under
gone would have been over in 10 days
or two weeks
There can be little doubt as to the
soundness of Mr.. Fowler's position
Just what measure the committee over
which he presides will bring forth for
giving desired elasticity to the cur
rency cannot be conjectured at this