Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1907-11-09
CREDIT
CURRENCY
C. G. FOWLER OF NEW
JERSEY EXPLAINS.
BELIEVES UNITED STATES CAN
EASILY SOLVE FIANCIAL
PROBLEM.

That permanent relief from the pres
ent monetary stringency can only be
had through a system of credit cur
rency adequate to meet the require
ments of trade and redeemable in gold
coin was the opinion expressed recent
ly by Representative Charles G. Fow-
Ter of New Jersey, chairman of the
currency committee, who will at the
coming session of congress endeavor
to have a law passed providing for cur
rency issued by the national banks.
Until such permanent relief is made
possible by legislative enactment, Mr..
Fowler asserts, the situation must be
met by the issuance of clearing house
certificates, cashiers certificates anC
due bills of business houses and manu-
facturerS.
THE underlying business condi-
TONS" he said, ARE essentially sound,
as evidenced by the increased earnings
of railroads and the fact that the value
of our agricultural products this year
is $500, 100000 more than last year
(Which was the largest year in our
history, and are bringing to our peo-
pie about $7,000,00O,000, but public
confidence has been greatly shaken
and credit seriously affected. There
fore every patriotic citizen. from the
president down, should do all in his
power to restore that confidence which
is essential to national prosperity.
"The cause of the currency strin-
gency is that there is scattered broad
cast throughout the country, at the
minis, in the wheat, corn and cotton
fields, in the pockets of the people,
or locked, up, about 81 300 100000 of
the reserve money of the United
States most of which, under a proper
condition, would be in the banks serv-
ing as reserve. Temporary relief will
be had through the forced use of cur
rent credits in the form of clearing
house certificates, cashiers checks.
checks and due bills of business
houses and manufacturers during the
80 days. The permanent cure must
come through a credit currency, eX-
banding and contracting with the Ordi-
nary demands of the smaller trade,
precisely as checks and drafts do in
the broader field of commerce.
I'VE have now proceeded far enough
in the present financial crisis to get
a pretty clear perspective of the real
situation.
First, the condition is now general
in every nook and corner of the coun-
try.
Second, if the gold certificates, the
United States notes and silver certifi-
Gates or the reserve money which the
banks of the country have sent to agri-
cultural districts of all sections to set
tie up the year business say, if
these reserves now scattered broad
cast over the land were in the banks
where they properly belong, there
would have been no money panic this
fall.
"The proof of this assertion is con
elusive: During the past four months
there has been sent from the banks
into the country districts approximate
ly $300,000000 of currency. Of this
amount $250000,000, approximately,
was reserve money, which, if it were
now in the banks, would serve as a
basis of more than 100000 ere
dts or loans, and the present crisis
would have been averted.
This result could have been ac-
complished without increasing our
bank reserves to the extent of a single
dollar, without increasing the liabili-
ties of the banks of the country to the
extent of l cent