The Washington herald., 1907-11-26
Chairman Fowler as a Critic of Relief.

Chairman Fowler as Critic of Relief.
Chairman Fowler. OF the House Com
mittee on Banking and Currency, severely
condemns the Treasury issues of bonds
and certificates as not only violative OF
economic and statute law. but also as
wholly unnecessary. IL not actually mis-
chievous. We presume it fair 10 suppose
Mr.. Fowler offers these structures at this
time for the purpose Of emphasizing the
acknowledged defects Of our currency
system and the imperative need of ap-
plying some effective remedy TO them.
Otherwise they would seem calculated 20
embarrass the Treasury in its efforts to
mitigate the financial stringency, as well
as to increase the difficulty Of securing
harmonious action in Congress on the
currency question by arraying Congress
sional opinion in opposition 20 the admin
istration.
Passing over the matter Of their timeU-
ness, whether for good or i'll. it may be
observed that Mr.. Fowler's censorious
judgments as to the nature and effect OF
the Treasury measures are not necessarily
infallible. and that. in fact, they are open
10 dispute. Particularly is this true of
his dire predictions OF the consequences
expected 10 follow the imitation OF the
currency by means Of the new issues.
We think the average citizen will be
unable TO see the difference between gov
eminent imitation OF the currency and
the imitation now in process by the issue
Of clearinghouse certificates, private
scrip, and otherwise, or between an infia-
tion Of the bank note currency and infia-
ton through a credit currency. Practi-
cally the only difference is that, as the
law now stands. II will be more difficult
TO retire the temporary government is
sues than the others, but they will be
retired ultimately. il not quite as rap
idly as credit currency and scrip. In the
present state Of public opinion, the coun-
try has more confidence in the operations
Of the government than in the sugges-
tions Of the banking community. however
sound the latter may he, and this is why
the government measures Of relief were
justified That these measures are ac-
complishing the purpose they were in
tended to accomplish, there is daily in
creasing evidence.
Mr.. Fowler's warning against paternal-
ism in the relations Of the Treasury with
the financial community is worth noting.
as indicating the probable main line OF
division on the merits of plans for the
Improvement Of our currency system.
Whether. in time OF need. the banks or
the government should issue an emer-
gency currency is the real question that
will have 10 be fought out in Congress
this winter Former Secretary Shaw's
statement that a central bank of issue
is politically impossible presents one
phase Of this question. II is impossible
because the people distrust the concen-
tration OF money power in any hands but
those of the government One Of the
greatest difficulties in the way OF the
currency reform Mr.. Fowler advocates
is the strong popular feeling that the
banks should not be given a function of
note issue denied to the Treasury. To
overcome this feeling it will be undoubt-
edly essential. in any legislation that may
be proposed, TO provide for stringent gov
ernment supervision and guarantee of
temporary note issues. We doubt whether
the country would approve any material
diminutIon of the present functions of
the Treasury. or a transfer of them to