Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-11-09
Chairman Of Currency Committee of
House or Representative Points
ont mcongruitics in Methods.

aO0. 100000 o. the reserve money ct
the United states. most OF which, un-
der proper condition, would be- IN
the banks, serving as reserves
Temporary relief would be through
the forced use OF current credit In the
form OF Clearing house certificates
cashiers checks and due bills Of BUSH
ness houses and manufacturers. during
the next 30 days
Permanent cure must come
through n system OF credit currency
expanding and contracting with the
ordinary detnP nds Of the smaller trade,
precisely as checks and drafts do In
the broader field OF commerce
I'VE have now proceeded Tar
enough into the present financial cris-
Is to get a pretty clear perspective OF
the real situation.
sTRINGENCY GENERAL.
"First-The condition is now gener-
al. reaching every nook and corner OF
the country.
"see5nd-If the gold certificates,
the United states notes and silver ccr-
tI0cates or the reserve money which
the banks Of the country have sent
into the wheat Fields OF the west and
northwest. into the corn fields OF the
west and southwest, into the cotton
fields Of the south and into the coun-
try districts OF all sections TO settle
up the years business, 1 say--lt these
reserves now scattered broadcast over
the land were in the banks where
they properly belong--there would
have been no money panic this fall
ONE GOOD SCHEME
"The proof Of this assertion is con-
elusive. During the past four months
there has been sent from the banks
into the country districts approximate
lv $500 100000 Of currency. or this
was reserve money: that e. gold GER
tincates. United States notes and sill
yer certificates. II this S250,OO0,OOO
of reserve money were now In the
banks. IL would serve as basis for
more than Sl.25O,000s 900 credits or
loans. and the present crisis would
have been aYerted. This result could
have been accomplished without in-
creasinK our bank reserves to the exc
tent 81 one single dollar, without In
Creasing the liabilities OF the banks OF
the country 20 the extent Of one single
cent
EFF the banks OF the country IN
which the $3.50. 0O0. 900 had been de-
posted had been authorized as they
should have been 10 create bank note
credits as well ar bank book credits,
and they had proceeded 10 convert this
100000. 600 Of bank book credits into
bank note credits ne banks would
not have been affected In any degree,
or IN any way whatever. and the whole
country would have been amply sup
piled with currency with which 10
transact an the fan business.
CASHIERS CHECKS.
How could this have been donoe
Simply bv authorizing each bank 10
issue cashiers oh ecls payable 90 bear
en- which f. a current credE. that Is,
"a credit that passes by mere delivery.
requiring mo- endorsement BY this
process the &2a0,00O.O0O of bank book
credits would have been converted in-
o. bank-note credit and as the re-
serves required FOR both forms OF
credits. should d. the same. there
could have been no change whatever
ln the situation. The bank debt Is
tho same. the amount Of the reserve
rs the same % has been only mat
ter OF bookkeeping
HIsTORY's REPET1rlONs.
"rho only relief we shall now get
Is coming ana must come from endOrc-
ga current credits just as IL did In
1898. Every banking center iu tho
Clearing house certificates as "a way of
escape HUT every Clearing house
certificate BE- ~ credit note and based
upon ldentically The same security ana
principal 1s tine credit currency / have
been advocating fDr tine hast q years.
Tho banks, business houses and manu-
facurors of uudoubted standing ina the
country should boldly ana bravelN do
nov just what obey DID In 1893.
ia may De- said tlat these forms
OF currency arc contrary To- law. yes.
but necessity knows mo- law. Tho
bankers and business men are goiuE
to disregard The law aud save the busl-
ness of the country from utter ruin
by issuing enforced current credits iu
such form and quantity as the occls-
fan requires. trusting that Congress
WIN Doe wise enough t1 pass such Jaws
as will preclude tha same necessity iu
the future
ONLY PERMANENT CURE.
through nu issue of credit currency
adequate to meet The requirements or
trade ana currency redeemed iu gold
coin. This principle is followed h1
every cIril2el country in the worl
except OUT own
'"rno banking power or thc uufel
states Boz 1880 HuF about 5000.000.00I.
fo the enurs hankug power of the
world in 1880. which Mulnal placed at
f1s.9st. 100000. To-Day the banking uoW-
81 0f tho cutiru world. outside ~ The
United states. ls only S2l.a52 600 900. and
of thls amount 20 per cent or more
fhan i400J.0a0 c00 ls in cashiers check,
0r current utelits.
"rhat ia Dr.dl currency -ind Net
while tbr United States haa three.
seventies nr tha iankuF power of the
entire world. % haF not one single dol
bar of current bank credit. although tho
other four -ofcuihH nf Che wurld's
banking power haf the advantage nf
gi0n' 900 900 current credits or credit
currency.
ADOPTION MEANS INCREASE
"On tne same gaals. We aro entitled
fo have 81 BOO n0i 600 of current credit
0r rTlIt currency M thls principle
wore broadly adopted Dob fhe country.
aa u should d. our bank reserves
might he increased from au average of
8gl-l00 rar Gene 10 about 20 por cent
and our banking liabilities remain prac,
ticau. tho seine.
tCdn ans ono give q single reason
uhF na should nef a check hOuk fOf