New-York tribune., 1907-09-27

operated in the expectation of over sSn0o0,oo0 Of
fosc Ffsf Is not this fact more potent than pages of
That greatest political economist, Adam Smith:
oecIdreG: The cry OF all ages is for more money
regardless Of the quantity any country. II seems
. kind of quack medicine to the ard-up dis
what IS the primary cause of our trouble? MY
IN view Of the immense increase In the worlds
blodq.fcton of gold for the last few years, which
:,reait i expansion of the whole commercial world;
world over is the barometric signal that great
!nSlria OF credit has grown beyond tho limits Of
wall as recorded by all the standard authorities
On ponticaI economy clearly indicating parallel
Condiilcns resulting fisastrously whenever the cry
Tor more money has been answered by an IN
servatism to the winds and add fuel to the fire of
onerspeculanon ny adding coined credit to our
change?
John Perrin. Of Indianapolis a member OF the
currency commission in brief reply to Mr.. Frame
instanced the case OF the Louisiana banks. which
before the war had credit currency system
Under that system the State Bank Of Louisiana
became the bank in the United States in the
amount OF Its holdings. and the speaker thought
that Nj Frame should explain why gold did not
go out, instead of accommodating
CONGRESSMAN FoWLER's SPEECH
1t vas getting on toward . O'Clock by this time,
one moved adjournment. There
cries Of out of ordert' and the suggestion
made that Mr.. Fowler he permitted to make his
promised address. The delegate who had moved
adjourn remarked that Mr.. Fowler could speak
tomorrow morning. but after some discussion with
drew his motion. end the chairman of the House
Banking and Currency Committee started upon his
reply TO Mr.. Frames'S argument.
He said there was not d civilized country without
credit currency. expanding and contracting pre-
cisely required by the demands Of business.
He outlined the systems In operation in Ger
many. France. Canada and Scotland, and the old
Suffolk system in the New England states. and
said that credit currency In New England
better than the present bond secured note
OF the United States
As to iatisn. he denied that there any
more Of II in a credit currency than in a check
In replying a question by Mr.. Frame he
marked that he would answer a speech recently
made by the latter in Minnesota. dealing with
the same subject as the speech of to-day, and
continues:
cannot go into Nj Frames speech gentlsmsnf
want 20 lay this proposition down here. That
propose. anywhere, on the face Of the earth, for
If Sqsaho lhere is such se chasnee ale ' Mr. Frame to
entio. it II nan rf is banker d. and 1hs, he 6oe has
Why? Not because he fears that they are bad.
scaUss he & Sends m ths YeT cheGk 5e OF Fist fs Ts
tonal Bank Of Chicago just as swiftly fly as be does
instead Of cashiers Check on New York or on
Chicago he wants gold certificates and United
Lst Us O take the case q srsdt currency
Supposing friend Frame received some OF these
Would you hold of these as reserve IN your
bank # The goyernment @ me put o,tIt them no out?
you 't to say What would you do with them? Why,
Teggisr II gIa ffsko Creeks and drafts under the
pct TO pass STT w Wo94 os sa You men 6o bat7 t VIZ 70
redeem them with legal reserves and get the re,
serves back into your bank and then you would
have the basis Of loans in the reserves that you
Vow Now that is just what happens in Canada every
day: There IS no law in Canada that compeIs a
answer just one proposition that my friend from
Wisconsin dscoUrses about this question OF
sot sosse stafe BsnErs SIS he d i that
dT9 deme sanf IN his oPnon w,e these o9U three
First-Distrust In the mind Of the holder OF
second-A compulsory law 10 drive Il home
Why. Brother Frame will you say that the Ger
man people dis-rust the German notes?
Mr.. Frame-They are not Ike ours.
t,1Sr retire and expand si25Gooo6 every three
months. Do you say that the Frenchmen distrust
rency and Yet which expands and contracts every
Mr.. Frame-There they have an unlimited La
CONFIDENCE IN NOTES.
the @ notes Of the Bank Of France notes of which
come and go as regularly as the seasons DO tle
e3 @ 81 t fb rate of Do you say that
the people of New England distrrsted their notes
Tessfded ss si'ss ss Sood So% as Eod DID they b.
cause they were not good? The Scotch notes +e s9
bns No it i'Fy s of s"
and, drafts, Are We different from all the rest
Of the world? r. o,s .,,. ,,s second
requisite was "a compulsory law 70 drive it home"
Is there any law In Germany driving these tlZo-
ststemsnt si that tt | am quoting from from
All, that is what wanted you to say. Now. /
ba.-a hafnr stat 0f he o
the notes from 1898 TO 1892. which shows that
though they had Increased the notes $4oo09OO the
showing that per cent tax was absolutely imna NINA
Se inflow o1t ana 1dt the n ono Now brother Frame
tell the audience what drives them home in Scot
andi YOU may have all the afternoon 10 do II IN
Tell the audience what is it? What is the law that
Mr. FrameEThey are driven home because every
bank pays out smy its 0%a @ nsd nGtfs states ea'
But you not answering the question, WY ny
do they pay out their own notes ana seho tIis
others home? They won't get any proht out OF
There is no power except the. power of selfish
bank. Now. tell this audience What kt seho Srives
French banknote home? what, What is 1t tha' or''eS
MI Frsme-The Bank of France has only ssC5- 49,
o00O of gold behind it.
The Congressman sst down amid calls for the
question.
William c. Cornweil, of New York CITY, said:
-. tho mover of the motion I want to accept the
amendment SO that the shall read. Instead
OF placing the report on file.' approving II IN
other words, the motion was that the report OF
the currency commission be received and piaceo
on file I accepted the amendment that was
made by GONE gentleman here TO the erect thae
Il be approved and the commission continued
with power to add to frs number II deemed ad-
visable and that IL continue its efforts for cur
rency reform. The question was then put to vote
and the amended motion carried with only few