New-York tribune., 1907-11-24
C. N. FOWLER A CRITIC.
HITS RELIEF MEASURE
Calls Panama Bonds and Trreasuru
Certificates Mistakes.


Representative Charles y. Fowler. chairman Of
the House COMMITTEE on Banking and Currency
does not approve of the issue of Panama bonds and
Treasury certificates In statement e,ver ont
yesterday he gives his reasons for disagraa;,e- Nil,
the policy Of the administration. whose aotion in
this respect he characterized Surprising ex-
traordinary. unwarranted and most unfortunate, .
He this stand Of his is unpleasant IN him
from a party standpoint. but he believes it his
duty to the public.
OF the turning point of the panic Mr.. Fowler
says:
on Friday. November 10. the crisis of the present
passed through the splendid aeeTems2f nG of ny
a. & 1ef ea4kefs of o IN hri9gins gold to this country
cost TO tneimSel|es for 1t was purchased generally
responding 10 the business necessities of the various
locallues IN issuing clearing house certificates and
SO as well as the larger denominations
Interference Of the administration at this point
lie says, must be most disturbing factor" al
though he believes the bankers may prevent anv
serious present consequence. Moreover he con-
tends that the government did not need the money
it had $24o00O0O0 10 its credit from taxation The
interest bearing debt of the government should not
have been increased $500O0O00 he says especially
when such increase OF debt clearly in violation of
the intent and purpose OF the law and because
the action of the Treasury is a most violent viola
lion Of economic law" He argues in part:
FL First let, let us deal deal with the 100000 of per
Seut d.tiiA4a oohOS Wnlch are 10 be used the
government has as stated; s240 0OOGO in its Treas
Panama canal or To meet the rt eJron I, Ta 1Re
lures Of the government. And even if it did it
could not take any part Of the proceeds of these
ford to exchange their reserve money for bank
And. further. because instead of there being
margin OF gam, there must necessarily be
by this hypodermc Injection of another $50 656 900
of fixed immobile currency into sodden mass
responds TO the varying conditions of commerce
country. We have made bad condition worse.
and the cfange cont@n %en n Iae reafton 10 comes
serves beginning about January IL, if earlier
until the reserves in our banks will probably ex-
his very $50 900 If ss Sice nee eed
debt shall be converted into banknotes that these
retired but that they viii ind piace in ths
Ieserves YES OF me state banks in the reserves of
they have no right therein the reserves of the
Sow mark i !6:o5 hf; That t every banknQte held
drive il out of the country This is inst Tbat o,Ir
silver purchases did from 1879 to 1894 The poorer
the better; There will be upward Of per cent
pT9ht on the oTculati2n taken out on these bonds
y and the The, counterpart will be that noiselssy;
xtenf that If n6s IFS pyI a% % note TO thf
the various financial institutions of the country
The Congressman asserts that if the 500 900 600
bond secured banknotes what they ought 10
he' "a current bank credit such all the civilized
world uses" there would be contraction
from January 10 July aggregating from S250GGnOOo
10 s3ooOOOG0a
He assumes responsibility for the temporary GER
ufcate clause under which the administration is
TO issue sl0ooo2000 Of per cent government interest
bearing obligations in these words:
told Mr. Dingley # would be unpardonabIe and
shame to the government to leave it in the posi-
ZION |iere it could not meet its expenditures be
The object as expressed in the statute itself.
when the revenues were insufficient we discussed
the denomination and it was fixed at so, because
them The ob hs 9pa s1 be % sd & e o S
the opportunity Of holding government securities.
Contending that the sale of these certificates is
unlawful he says:
am n0 Of any Sstg5Y bs By which fd: 5hSy
sote circGIations However this NAV be- the most
unfortunate incident to my mind, is the fact that
bank bills and coin With the
rnc f so & cor nat h clear MoFa fa chGInis as as
they were 70 draw interest and be sold to the
contemplated TO deliver 10 the buyer little Ger
>esJment drawing Interest and. therefore in the
nature Of b.. bond and not a piece Of & currency II
probably viii bring about their return. in order
have forced into our circulation S1cO0000 of pure
n @ Pr rt IN The form Of bank f Bills and m no R
the form Of A bond, will not this be the actual
effect upon the country until they are retired?
This warning is voiced against paternasm in
government:
We must anticipate the possibility in the future
of having a President who. wanting the people to
think that he is little father" will some time
say: The government will see that the people
vii N not SuGT only tBe t peoP1e @ cah " vii m
normally in these abnormal times? Our national
finances must be put in such condition that there
can be no misunderstanding. such the Presi-
dent must have of the situation.
In closing Mr.. Fowler says:
Let it be laid down as a fundamental principle
falling with the varying conditions of business
until IL is based upon and directly related 10 the
eonsurnable commodities Of country-going out
with production and coming in with consumption
precisely do checks and drafts.