The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-11-04
SEES A PANACEA IN
THE CREDIT CURRENCY
Chairman Fowler Has a
Plan For the Proven
ton of Flurries.
ADVISES PROPER LEGISLATION
Reserve Cash is Scattered When
Needed-This Country Stands
Alone in its Money Methods.

New York, Nov 3-Relief from
monetary stringency can anly be Sc
cured by a system Of credit currency
which shall meet the requirements of
trade and be redeemable in gold, ac-
cording to Congressman Charles Fowl
er Of New Jersey. Mr.. Fowler Is
chairman Of the banking and cur
rency committee of the house, which
viii at the opening session Of con-
gress endeavor to have q law passed
providing for credit currency issued
by the national banks. Until such
permanent relief is made possible by
legislative enactment, Mr.. Fowler as
serted today the situation must be met
by the issuance of clearing house GER
tifeates, cashiers checks, and due bills
of business houses and manufacturers.
THE underlying business conditions"
he said, ARE essentially sound. as evil
denced by the increased earnings of
railroads and the fact that the value
OF our agricultural products this year
is $500, 900, 900 more than last year,
(Which was the highest year in our
history) and bringing to our people
about 100000, 600. Public confidence.
however, 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 es-
sential to national prosperity.
SI,3OO,OOO,OOO Reserve Scattered.
THE cause of the currency string
ency 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 $1,000. 600 of re-
serve monty of the United States. most
of which, under a proper condition,
would be in the the banks, serving as
a reserve. Temporary relief Will be
through the forced use of currency
credit in the form of clearing house
certificates, cashiers checks. and due
bills of business houses and manufac-
turers during ninety days
THE permanent cure must come
through q system of credit currency,
expanding and contracting with the
ordinary demands of the smaller trade,
precisely as checks and drafts do in
the broader field of cammerce.
1--WE have now proceeded far enough
into the present financial crisis to get
a pretty clear perspective of the real
situation:
"First-The condition is now gen
eral reaching every nook and corner
of the country
"Second-If the gold certificates, the
United States notes and silver certif-
fcates or the reserve money which
the banks of the country have sent in
to the wheat fields of the west and
northwest into the cotton fields of he
south and southwest, and into the
country districts of all sections to settle
up the years business say. If these
reserves now scattered broadcast over
the land were in the banks, where they
properly belong, there would have beer
no money panic this fall.
Would Have Averted Crisis.
THE proof of this assertion is con.
elusive. During the last four month:
there has been sent from the banks into
the country districts approximately
$500 100000 of currency OF thi:
amount s25O,00O.o0O approximately wa.
reserve money, which, If it were in the
banks. would serve as a basis of NOR,
than 1880. 1000, 900 credits or loans anC
the present crisis would have beer
averted. This result could have beer
accomplished without increasing GU
bank reserves to the extent of ONT
single dollar. without increasing thu
liabilities of the banks OF the countr!
TO the extent of one single cent"