The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1907-11-19
FOWLER'S PLAN
FOR CURRENCY
His Remedy for Money Market
Ills VIII have Large InfIu-
ence in New Legislation.
WHAT GOVERNMENT SHOULD DO

ods than Charles N. Fowler, of Eliza
beth, representing the Fifth New Jer-
sey District. Mr.. Fowler is chairman
of the Committee on Banking and Cur
rency. No member Of the National
Congress has given existing monetary
stfingency closer attention than he
has. Mr.. Fowler now comes forward
with fifteen suggestions for the relief
of the existing situation. Dealing with
the situation he summarizes his pos
ition as regards these fifteen propos-
itions as follows:
"Firsty-A proper currency springs
into existence through the transaction
of business precisely as checks and
drafts do.
ssSecond-A credit currency is based
upon and directly related to the con-
NSumabie commodities of country
the things we eat, wear and use. 1t
comes into existence with purchase
and production and disappears with
sales and consumption.
sfThird-Credit currency, therefore,
is essentially the peoples currency
representing the ever-garying quantity
of the products of their labor
"Fourth-If we had such currency
in the United States, it would be based
upon and directly related to, our agri-
cultural products, valued this year at
81, 900, 600 900, to our mineral output
worth ST, 400, 900, 600, and to our manu-
features now exceeding S17 ,000, 600, 900
per amman, or a total of $25, 400, ,000, 900
of Houid wealth or personal property
that is being daily converted into gold
coin or its equivalent.
s.Fifth-Credit currency should be
currently redeemed ia gold coin by the
bank issuing it.
'sSixth-The banks of the country
should deposit with the United States
treasury a guarantee fund in gold coin
to ensure the immediate redemption
of the notes of any bank that may fail.
,,sSeventh-Ther is absolutely no
difference in principle between credit
currency Tor cashiers checkS) and a
deposit at the same bank subject to
your own check. The one is current
credit of the bank and the other is the
credit of the bank subject to order.
sEighth-Credit currency should be
the tool or the Instrument of all the
smaller trade transactions precisely as
the individual check is the instrument
by which the larger transactions are
carried out.
'sNinth-Credit currency should be
as universally and freely used by the
masses of the people as checks and
drafts are by the wealthy or those able
to keep bank accountS-becauSe the
working masses are entitled to just as
economical a form of currency as the
rich.
"Tenth-There being no difference
in principle between bank-nOte-creditS
Tor bank credit, Subject to order, the
currency of the rich) and bank-note-
credit Tor credit currency, the currency
of the laboring masses), there should
be no tax upon either, because in both
cases it would be tax upon produc-
tiOn and, therefore, necessarily borne
Eleventh-Every country in the
civilized world, with single exception,
now has credit currency, and there
is, practically speaking, no tax upon
any part OF it;
world, outside OF the United States,
has now $21, 900, 100000 banking CAPT
tai, and of this one-tifth, or 81 900, ,O00,..
600, is credit currency. The United
States has $4,000, 100000 OF banking
CdUlUdl, VI luOlG UtldI ulllCO-oCFCuOilo
of the entire world-and yet has not a
single cent of credit currency.
"Thirteenth-Sco has a credit
currency issued by the banks that ex-
pands and contracts twice year at
the rate of ST.. % per capita. or So, ,500,-
600. The same ratio would give the
United States about $l00,000,000 of
credit currency. France has a credit
currency issued by the Bank OF France,
which is constantly expanding and
contracting throughout the year at
the rate of $1.73 per capita, or S67,-
O00, 900. The same ratio would give
the United States $150,000,000 OF
credit currency; but we have not one
cent of credit currency. Germany has
a credit currency which expands and
contracts four times every year at I'll
rate of so. IL per capita, or $125, 900, 900.
The same ratio would give us $780,
OOO, 900 of credit currency, but we
have not a cent of credit currency.
Canada has a credit currency issued by
the banks that expands and contracts
at the rate of 1920 per capita every
fall, or S25,000,000. This same ratio
would give the United States $3.50,
100000 of credit currency, but we hay e
not single cent of credit currency,
though we need it more than any
country in the world. This is the
story of the whole civilized world.
Criminal ignorance and criminal negli-
gence have precipitated the present
situation.
FOurteenth-If the United States
had such currency we would not
have been visited invariably every fall
with staggering fear lest we should
not pass the ruinous dangers Of great
crop. Nor would the tragic events OF
this year have blackened the history
of 1907 and left a trial of disaster
throughout the land with all its sick
ening woes of want.
Fifteenth--W Whatever commercial or
financial difficulties we might encOunt-
er there never could be a currency
famine in this country so long as
there were bank book-creditS that
could be converted into bank-note
creCiJ."
DIR. Erdman Has Charge in Hawaii.
Rev. DR.. Erdman writes that just
before sailing for home from Honolulu,
an urgent opportunity was offered him
to take charge of a small mission sta
tion for two or three months on the
island of Mani, which he accepted.
Mani is the second largest of the Ha-
waiian group Of Islands, and DR.: Erd-
- H.. a. -.