The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1907-11-07
CREDIT CURRENCY
NEEDED--FOWlER
new jersey Congressman De.
cIares It Will Afford Perma-
nent Rclief--- Conditions.

HAFFZM# 4MNH HHa.
New York. Nov. 6.--That permanent
relief from the present monetary strin-
gency can only be had through q sys-
tern of credit currency adequate TO
meet the requirements ut trade and re-
ldeemablc IN gold DIN was the opinion
expressed today by Representative
Charles Fowler, Of New Jersey, cnair-
man OF the banking and currency COM
lnittee, which will. at the comiIB ses-
sion OF congress endeayor to have a
law passed providing FOR credit cur
rency issued by the national banks.
Until such permanent relief is made
possible by legislative cnactments Mr..
Fowler asserted the situation must be
met by the issuance OF clearing Rouse
certificates, cashiers checks and due
bills of business houses n manufac-
,turers.
1.-THE underlying busin SO conditions,
said Mr.. Fowler to the Associated Press
today. ARE essentially sound, as evil
denced by the Increased earnings OF
railroads and the fact that the value OF
our agricultural products this year are
$500, 100000 more thar last year (Which
WAS the highest year in our history
and are bringing TO. our people about
81, 000.00o.000 but public confidence has
been greatly shaken and credit seri-
sousiy affected; therefore, every patri-
otto citizen. from the president down,
should do all in his power to restore
that confidence, which Is essential to
national prosperity.
The Banking Power.
Mark this: The banking power of
the United States in 1890 was about
SIS, 900, DOC, 900 N now exceeds $4,000
100000, or equal to the entire baking
power OF the world In 1890, which Null
hail placed at SIS, 1885, 900, 900. Today
the banking power of che entire world
outside OF the United States is only
81. 95g. 600, 600, and Of this amount 20
per cents or more than $4,000, 900, 600, is
In cashlerg' checks or current credits.
That Is, credit currency. And vet while
the Omitted States has thiee-sevenths OF
The banking power of TIE entire world
IL has not one single dollar of currency
bank credit, although the four-sevenths
of the worlds banking POWER has the
advantage of $4,000, 100000 current
credit currency.
ION The same basis we are entitled
TO have IS, 900, 100000 of currency credit
of credit currency.
IF this principle We're broadly
adopted In this country as II should
be, our bank reserves might be in
creased from an average of 9 s2-lO0
per cent to about 20 per cent, and
our banking liabilities remain practi-
cally the same.
Can any one give a single reason
why we should use a check book for
credits for order and not use a cur
rency credit of the same book on which
we draw our checks? Is not the CASH
ier's check just as good as u check
on the same ba~nk--indeed, far better
when protected, as 1t should be, by
a guarantee fund with the United
States government many times more
than ample to insure its redemption IL
gold coin?
An 8 Per Cent. Increase.
If the banking institutions of the
country would exchange 81, 200, 900, 900
OF cashiers checks for $1,000, 600, 900
OF reserve none now floating o
IL the minis, wheat, corn and cotton
fields, and this 81, 200, 000,0 900 were
added to tho $1,000, 100000 in the
banks on July /, 1907, our bank liza
lbilities would be increased about s
per cent, while our reserve would be
Increased 100 per cent, and instead of
our average reserve being about 10
per cent. it would be 20 per cent, and
this end alone is sufficient to justify
the adoption Of the principle OF cur
rency credits in this country.
scotland has a credit currency is
sued by the banks that expands and
contracts twice q year at the rate of
i$l.22 per capita, or $5,500,0 00.
fsThe same ratio would give the
United States about $1,000, 100000 of
credit currency, but we have not /
cent of credit currency, though we
need it more han any country in the
world. France credit currency is is
sued by the Bank of France, which Is
constantly expanding and contracting
throughout the year at the rate of
$l.73 per capita, of $67,600, 900.
"The same ratio would give the
United states $150,000,000 of credit
currency.
Canada has a credit currency is
sued by the banks that expands and
contracts at the rate OF $3.29 per
capita every fall, or $4,000, 900.
THE same ratio would give the
United States $280.000 900 OF credit
currency. But we have none" "