Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1907-12-04
FOWLER FAV0RS
CASHIERS CHECKS
Points Out Errors in Rem
edieS Proposed.

NEW YORK, Dec. (SpeciaD -
Chairman Fowler, of the House Com
mittee on Banking, has followed up
his attack on the policy of the Ad-
ministration in its measures for relief
in the present financial crisis.
In a statement issued yesterday he
said among other things:
Il again declare that if this Gov
eminent continues its present policy
of injecting into the arteries of trade
and commerce fixed bond secured
currency-by exchanging securi-
ties, by bond speculation, by treas
ury manipulation, by executive order
or by any other form of thimble rig
ging we shall continue to move, but
with greatly accelerated speed, to-
wards, commercial crisis compar-
ed with which the present panic is
only pleasant summer outing.
Our condition this fall has been one
of real prosperity. Our crops are
worth about seven billion dollars;
the products of our mines about one
billion four hundred million; our
manufactured products about seven
teen billion. a total of twenty-five bill
lion dollars.
We have today in the banks of
this country about twelve billions of
dollars of deposits and about the
same amount of outstanding loans.
Against this fabulous sum the banks
hold as reserve about nine hundred
million dollars, or less than per
cent. And even of this per cent
reserve, nearly one quarter-two hum
dred million dollars, is in bank notes
"a mere credit, a mere promise to
pay.
Widest Sort of Imitation
yet if we continue our present
policy where is it going to end?
Not long will it be before all of our
bank deposits will rest upon credit
reserves. This is obviously the worst
and widest form of imitation Yet
it is rumOred that sheer madness is
to follow, as a scheme is now being
wrought out to add to this already
overwhelming burden another load iii
the form of State, municipal and rail-
road bonds as the basis Of our bank
currency liability No one who has
studied this question doubts that all
VI Jul SDIi NISs WAEAilCl IOi NCIlOotb
or for any other form of bank liabil-
ity including bank notes should be
gold
To suggest as remedy for our
financial trouble that we add to the
already existing burden of about
$500 100000 of bond secured bank
issue, an unlimited amount of bank
notes based upon State. municipal
or railroad bonds, will prove the
last straw. 1t will still further force
gold out of our reserve and out of
the country.
Cashiers Check the Remedy
"A cashiers check does not lead
to expansion nor initiation for the
reason that by the very nature of
the instrument it is sent home for
redemption at once.
A bank note issue consisting of
cashiers checks payable to bearer,
will always keep the currency of the
country down to the lowest point of
necessity, and yet will always meet
the largest demands Of trade and
commerce.
"Of the twenty-one billion employed
abroad about 25 per cent consists of
credit bank notes or cashiers checks.
or current credits, while with our
enormous banking resources, which
exceeds three-sevenths of the entire
banking resources of the world we
have not a single dollar of such cur
rent credits, except the clearing house
certificates and cashiers checks now
in circulation