Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1907-12-12
BASE BANK NOTES
On COMMODITIES
SUCH is POLICY URGED BY CON-
GRESHAM FOWLER.
REFORM Is IMPERATIVE
Present System Is Costing American
People s15o,ooo.ooO AnnuaIIy-use
Of Much Capital Lost by Deposits
to Secure Government Funds
Waste Should be Stopped.

Chicago, Dec 11.-Before the ILL
nois Manufactures association yester-
day Congressman Charles N. Fowler
spoke against the great central
bank" not regarding it as an essential
TO a scientific, sound and wise bank
ing and currency system for the
United States.
''Our bank notes must spring into
drafts do through business transac-
tions," said Mr. Fowler.
Our bank notes must be related
to and based upon the consumable
commodities Of the country going
out With productions and coming in
with consumption
THE practise, will not say prin-
ciple, of finance and currency now in
operation in this country is costing
the American people at least $780,
100000 annually, in addition to the
frightful devastation of values Incl
dent TO such currency panics as the
present, which are liable to occur at
any time If some significant failure
should precipitate it.
"The cost to the people Of $15O,000-
900 arises from the fact that the use
OF all the capital represented by the
bonds deposited to secure our pres
ent. bank notes, is lost because they
are wholly unnecessary and in their
present use and relation are an un-
mitigated curse.
THE use of the capital represented
by the bonds deposited to secure gov
eminent deposits is also lost, as well
as interest at the rate of per cent
upon government deposits, which
since the establishment of the ma
tiOnal banking system up to the pres
ent time has amounted to about $751;
100000, or nearly twice as much as
the loss to depositOrs resulting from
failures of national banks. There is
in the pockets of the people $1,250,-
100000 of reserve money, $1,00O,O0O,
900 of which at least should be eX-
changed for current credit or credit
currency. If any other business in
the world. except our politically man
aged, we're involved, this waste of
$3.50, 900. 600 annually would be stopped
at once
Mr.. Fowler said that law should
be passed giving to the national banks
the right of exercising in the re-
speCtive states where located all the
powers OF executors, administrators,
guardians and trustees. Unless this
step Is taken the advantages now en-
joyed by the trust companies will
gradually but inevitable compel the
national banks to surrender their
charters for trust company charters;
for If a trust company is required to
carry only one-fifth or One-half the re-
serve OF a national bank, it can afford
to pay much higher rate of interest
upon deposits and eventually under
mine the national banks.
Speaking in defence Of a credit cur
rency Mr. Fowler said that such a
medium cannot in any way lead to ex-
pansiOn but 1t would rather tend to
prevent expansion, if put upon the
same footing in all respects as checks
and drafts Our currency will then
be perfectly co-ordinated to the needs
of business. being neither too great
nor too little, the cashiers checks
springing into being with business
needs, and automatically disappearing
precisely as checks and drafts do.
mo civilized country" said Mr.,
Fowler, now mas a bond secured
currency such as we have; and no
civilized country of consequence ever
did have SUCH a currency except one.
and that is Japan, who copied it from
us only to repudiate and discard it in
favor OF a credit currency"
in conclusion Mr.. Fowler said: Il
now declare that If this government
continues it's present policy of in.
jecting into the arteries Of trade and
commerce fixed, bOnd-secured cur
rency, by swapping securities, by bond
speculations, by treasury manipuaa.
tons, and by Executive orders, we
shall continue to move only with an
accelerated speed and with the direct
mss of Il musket groove, and the absO,
lutte certainty of passing time, toward
a commercial break-down-a CONNER
cial crisis, a commercial tragedy
compared with which the present cur.
rency panic in only a pleasant sum
mer outing.