The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1907-12-05


Fowler OF the house committee ON l
and currency. naa1e the fol. l
lowing statement today, respecting |
the outlook foi financial legislation q
In the Slxtieth congress.
There certainly should he soule !
remedial legislation, aud can assure
you that the members OF the commit
tee on banking and currency viii |
bend their energies TO that end.
What we shall he able To accomplish
no mar can answer. But that there
Is urgent need for help no man can
deny.
"At the dinner OF the American /
Bankers association at 1T. Louis
year ago. predicted that the thing |
which has happened must happen |
unless some immediate action VAS
taken, and that there was not
banker I'm the United States who
would not regret IL II SOU cthing was
not done. AT the close OF the last
session OF congress said that the
condition uf our dnances and cur
rency ~as such that IL would Of ne
cesslty lead to the destruction OF oar
prosperity.
Again, now declare that u this
government continues It's present
policy OF injection into the arteries
of trade and commerce bcId-se-
cured currency-by exchanging secur.
lty by bond speculation, by treasury
manipulation by executive order, on
by any other form OF thimhle Rigging
We shall continue To move, but ~stl
greatly accelerated speed, towards i
commercial crisis compared with
which the present panic Is only !
pleasant summer outing. 0ur con
ditiun this fall has been one OF rea
prosperity. our crops are wortl
! about o. 90, ,osE. 600; the products o
: our mines about sl, 100, 600 0ob: on
4 manufactured products about sis,
O0o, 900, ooo-a total OF s25, 900. .oan, ,oos
!, Meanwhile, we have had the advar
I, tage Of an extraordinary cansnmI
tion of food-stuffs, and are euloyin
exceptionally high prices.
IL all this were not true, but. q
/, the other hand, our business cond
!. tions had been bad, our crops pos
!. and foreign prices low, imagine WIN
would have transpired.
Notwithstanding all this NJ
" holly because OF the maladministr
=. tiun our finances, we are In STA
90 OF panic.
"we have today In the banks
;, this country acout i2,oso, ooo, 600
= deposits aud about the same amon
). OF out t-stapoing loans. Against tf
fabulous sum the banks hold as !
- serve about 800, ,0O0, 900. or less th
per cent. And even OF this .
>, cent reserve. nearly one-qusrtei
- 500, -0oo, ooo--is bank notes-a ms
=. credit, a mere promise TO pay.
a. stating IL in another way, !
y, reserves held against ss, 5Uo. o., 600
our bank deposits ttday are ha
=. a. notes and not gold, which Is adni
tediy the only proper reserve In a
country with gold standard.
"Yet, II we continue oar press
80. policy. where Is II going 10 eDdy
- long will it be before all Of our ba
deposits will rest TIN credit resers
= This IL obviously the worst 4
widest form OF imitation. Yet IL
80 rumored that sheer madness Is t0
low: that 4 scheme II now bel
wrought out tC add 10 this aires
overs helming burden, another Il
In the form OF state, municipal
railroad bond as the basis OF
bank currency liability. includ
~, hack notes. should lie gold. y
amazing as IL may seem, at the
nual meeting ot the American BaI
-, ers' association year ago, resE
tiop was introduced declaring .
the national bauk note being secn
: by government bonds was Just
good . reserve as greenbaek,
the gteenhsck Is a lasiul reseE
1' kot this Is begging the qaesti
's" - because the greenhack itself Is G
nv tolerated as reserve, because the 8
erument stands ready at all tines
's'" redeem IL In gold. The security
nv" the national bank note, on the OF
hand. Is per cent gosernm
- bond, paybaole twenty-hve -
hence, which, as an inyestms
" based on It's late CO interest, &c
lu's ssll for about sixty-fye cents ca
= - dollar. Its present price Is du
'N's special demand for II as security
'i., tie hank note issue
-. To suggest as remedy for our
''''' ancial trouble that We add to the
ready existing burden OF about g.
news oeo. 600 OF boDd.secured bank iS
and unlimited amounts Of bank n
. baseu on state. municipal or raiiI
eau bonds. .will prove the last straw.
will will still further force gold out OF
,ha ,asarxe and out of tie country.