The French Broad hustler. [volume] (Hendersonville, N.C.) 1896-1912, 1907-11-07
4 PIN FOR CREDIT RELIEF
A Plan For a System of Credit
Currency Outlined J.
A SCHEME TO 0BYIATE PANIGS

m GUlIAmL ~ UDYlA1L fAESfOD
Relief From the Monetary
S~tringency, Declares the Chairman
of the Banking and Currency Com
mittee of the House, Can Be OBJ
tanned Only by That Enactment
he Points Out the Cause of the
Present Stringency and Outlines
the Real Situation.
New York, Special-That perma-
nent relief from the present none
tary stringency can only be had
through a system of credit currency
adequate to meet the requirements Of
trade and redeemable in gold coin
was the opinion expressed by Repre-
sentative Charles N. Fowler, of New
Jersey, chairman of the banking and
currency committee of the House,
which will, at the coming session of
Congress, endeavor to have a law
passed providing for credit currency
issued by the national banks. Until
such permanent relief is made pos
sible by legislative enactment, Mr..
Fowler asserted, the situation must
be met by the issuance of clearing
house certificates, cashiers checks
and due bills of business houses and
manufacturers.
"The underlying business condi-
TONS" he said to the Associated
Press, care essentially sound as evil
denced by the increased earnings OF
the railroads and the fact that the
value of our agricultural products
this year are $500, O00, 900 more thar
last year (Which was the highest year
in our history, and are bringing tc
our people about $1,000, 600 900. Bui
public confidence has been greatly
| shaken and credit seriously affected
| therefore, every patriotic citizen from
] the President down, should do all il
khis power to restore that confidence
(which is essential to national pros
perity.
Cause Of Stringency.
"The cause of the currency strin
! gency is that there is scattered broad
cast throughout the country, at tn
4 mines, In the wheat, corn and cottol
fields, in the pockets of the people o
locked up about $1,000, 100000 of tn
reserve money of the United State
most of which under a proper condi
ton would be in the banks, servin
las reserve. Temporary relief will b
through the forced use of curreu
credit In the form Of clearing hous
certificates, cashiers checks and du
bills of business and manufactures
during the next 90 days. The permi
nent cure must com through a syI
tenn Of credit currency expanding an
contracting with the ordinary d
mands Of the smaller trade, preeisel
ms checks and drafts do in the broad
er field of commerce.
eve have now proceeded far e
ough into the present financial crls
to get a pretty clear perspective
the real situation.
The Real Situation.
"First-the condition is now ge'
eral, reaching every nook and corn'
of the country.
"Second-If the gold certificate
!. the United States notes and s1lv
, certificates, or the reserve mon
which the banks of the country ha'
|. sent into the wheat fields of the We
and Northwest, into the cornfelds
the West and Southwest, into the &C
. ton fields of the South and into t
] country districts of all sections
!, lsettle up the years business, | say
!, Iif these reserves now scattered broa
cast overland were in the ban
where they properly belong-the
would have been no money panic Il
fall.
"The proof of this assertion is &C
elusive. During the past four mont
> there has been sent from the ban
:, into the country districts appro;
:. tmately $300,OOO,0O0 Of currency.
!. this amount $3.50, 000 1000 appro:
) kmately now in the banks, wot
: serve as a basis of more than $1,2o
IOOO.O 900 credits or loans, and the pr
ent crisis would have been avert
This result could have been acco
plished without increasing the lab
ties of the banks of the country
10 the extent Of one single cent.
a Lays Down Challenge.
ID ct challenge any man to cont
m vert this statement and submit
IL following as absolutely conclus
Il proof Of the assertion. IF the bal
TO of the country in which $250,OO0,'
70 had been a~uthoratized as they sho
d have been, to create bank note cree
as we'll as bank book credits, {
they had proceeded to convert t
Es25o.00G.0 900 Of bank book credits
A IA oaL 2o4a oraditS the hanks WO