The Caucasian. (Clinton, N.C.) 188?-1913, 1907-11-07

New York, Special.-That perma-
nent relief from the present none
tary strlngency can only be had
through a system Of credit currency
adequate to meet the requirements Of
trade and rRdeemable 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
Ne met by the issuance Of clearing
house certificates, cashiers checks
and due bills Of business houses and
manufacturers
"The underlying business condi-
f1ons," he said to the Associated
Press, care essentially sound as evil
fenced by the increased earnings Of
the railroads and the fact that the
value of our agricultural products
this year are $500,000,000 more than
last year (Which was the highest year
n our history, and are bringing to
our people about $7,o0O,000,000. But
public confidence has been greatly
shaken and credit seriously affected;
therefore, every patriotic citizen from
the President down, should do all in
his 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
east throughout the country, at the
mines, in the wheat, corn and cotton
fields, in the pockets of the people or
locked up about 81 800, 100000 Of the
reserve money of the United States
most Of which under 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 and manufacturers
during the next 80 days. The perma-
nent cure must come through sys-
tenn Of credit currency expanding and
! contracting with the ordinary de-
mands Of the smaller trade, precisely
as checks and drafts do in the broad
er field Of commerce.
"We have now proceeded far en-
ough into the present financial crisis
to get a pretty clear perspective OF
the real situation.
The Real Situation.
| "First-the condition is now gen
eral, reaching every nook and corner
of the country.
"Seeond-If the gold certificates.
the United States notes and silver
| certificates, or the reserve money
which the banks Of the country have
sent into the wheat fields Of the West
and Northwest, into the cornhelds of
the West and Southwest, into the cot
ton fields of the South and into the
country districts of all sections to
settle up the years business, I say
if these reserves now scattered broad
east overland were in the banks
where they properly belong-there
would have been no money panic this
fall
"The proof Of this assertion is ccn-
elusive. During the past four months
there has been sent from the banks
into the country districts approx
mately $3O0,000,OO0 of currency. Of
this amount $250,000,O00 approx
mately now in the banks, would
serve as basis of more than 81 1,25O,-
100000 credits or loans, and the pres
ent crisis would have been averted.
This result could have been accom-
plished without increasing the liabili-
ties of the banks Of the country to
the extent of one single cent.
Lays Down Challenge.
"I challenge any man Ito contro-
vert this statement and submit the
following as absolutely conclusive
proof of the assertion. If the banks
of the country in which $3.50, 100000
had been authoratized as they should
have been, to create bank note credits
as we'll as bank book credits, and
they had proceeded to convert this
$3.50, 100000 of bank book credits In
to bank note credits the banks would
|, not have been affected In any degree
or in any way whatever, and the
whole country would have been amp.
| ly supplied with currency with which
| TO transact all the fall business"
"How could. this. have been done
Simply by authoizing each bank to
issue cashiers checks to bearer
which is curren credit
that is, credit that passes
I by mere delivery, requiring ne
| endorsement. By this process credits