Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-11-07
CREDIT CURRENCY
Present Monetary Stringency VIII
Continue Until We Get al
equste supply
so SsfS CbaaLES FOWLER
Coming Session Of Congress Should
I,ass q Lsw--Must use Clearing
Holse Certificates and
c.shisr's Cnee%s.


New York, Nov. 4.--That permanent
relief Ion the present moaetary
gtr.ngency can only be had through
a system Of credit currency adequate
to meet the requirements of trade and
rcdeemable in gold coin was the opin.
ion expressed Sunday by Representa-
tive Charles Fowler, Of New Jersey,
chairman of the banking and currency
committee, which will, at the coming
session Of congress, endeavor to haya
law passed providing for credit cur
rency issued by the national banks.
Until such permanent relief is made
POSSIBLE 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 manufac-
turers.
1.-THE underlying business condi-
TONS" he said to the Associated Press
Sunday, ARE essentially sound as evi.
denced by the increased earnings Of
railroads and the fact that the value
of our agricultural products this year
are $50O,O0O,0OO more than last year
(Which was the highest year In our
history and are bringing to our PEG
pie about $1,000 100000. but public
confidence has been greatly shaken,
and credit seriously affected, therefore
every patriotic citizen from the presi-
dent 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
mints, in the wheat, corn and cotton
fields, In the pockets Of the people or
locked up, about $1,000, 100000 of the
reserve money Of the United States,
most Of which, under a proper condi-
ton would be in the banks, serving
as reserve. Temporary relief will be
through the forced use of current
credit in the form of clearing house
certificates cashiers checks and due
bills Of business houses and manu-
facturers during the 70 days. The
permanent cure must come through y
system Of credit currency expanding
and contracting with the ordinary de-
mands Of the smaller trade, precisely
as checks and drafts do in the broader
field Of commerce.
eve have now proceeded far enough
into the present financial crisis to get
pretty clear perspective Of the real
situation.
First, the condition is now general,
reaching every nook and corner OF
the country.
Second, If the gold certificates, the
United States notes and silver certi-
fcates or the reserve money which
the banks of the country have sent In
agricultural districts Of all sections to
settle up the years business ! say
II these reserves now scattered broad
cast over the land were in the banks
where they properly belong-tnere
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 $500, 100000 Of currency. OF this
amount $3.50, 100000 approximately was
reserve money, which, II 1t were now
| in the banks, would serve as basis
OF more than s1.25O,OO0,OOO credits or
loans and TIE present crisis would
have been averted.
"This result could have been &C
complished without increasing our
bank reserves to the extent Of 6 single
dollar, without increasing the liabih-
ties Of the banks OF the country to the
extent Of one cent"
Small sCalIed OF" the strike.
| A.. R-.ar nnA On q Y G-..1a -