Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-04
Declares Permanent Relief Can
Be Had Only Through Sys-
tenn of Credit Currency Ade-
Quate to Trade Demands.
BUSINESS CONDITIONS
THOROUGHLY SOUND
Chairman Of House Committee
on Banking Believes Proper
Laws Would Have Rendered
Present Crisis Impossible.

GBy Morning Journal special Lsased wirel
New York, Nov. 3.--That perma-
nent relief from the present none
tary stringency can only be had
through a system OF credit currency
adequate TO meet the requirements OF
trade and redeemable In gold coin
was the opinion expressed today by
Representative Charles Fowler, OF
New Jersey, chairman OF the banking
and currency committee. which will
at the coming session OF congress en-
deavor TO have a law passed provid-
ing Tor credit currency issued by tho
national banks. Until such permanent
relief Is made possible by legislative
enactment. Mr. Fowler asserted, the
situation must be met by the issu-
ance Of clearing house certificates,
cashiers checks and due bills of busi-
ness houses and manufacturers.
The underlying business condi-
tions" he said to the Associated Press
today. are essentially sound. as evil
denced by the Increased earnings OF
railroads and the fact that the value
of our agricultural products this year
are $500, 100000 more than last year
(Which was the Highest year In our
history, and are bringing to our peo-
pie about seven billion dollars, hue
shaken and credit seriously affected.
therefore every patriotic citizen, from
the president down should do all in
his power 10 restore tbat confidence
which is essential 10 nhtionat. rrfa
perity
"rhe cause Of the currency strin-
gency is that there IL scattered broad
cast throughout the country. at the
minis, In the wheat, corn and cotton
fields. IN the pockets Of the people.
or locked up. about $1,000, ,000.0 of
the reserve money of the United
states, most OF which, under a proper
condition. would be In the banks.
serving as reserve. Temporary relief
VIII be through the forced use OF cur
rent credit IN the form OF clearing
house certificates. cashiers checks
and due bills OF business houses and
manufacturers during the next ninety
days. The permanent remedy must
come through a system OF credit cur
rency expanding and contracting with
the ordinary demands OF the smaller
trade. precisely as checks and drafts
do Ia the broader field Of commerce.
we have now proceeded far enough
into the present financial crisis to get
pretty clear perspective Of the real
situation.
First. the condition Is now gem
eral, reaching every nook and corner
OF the country.
Second. II the gold certificates, the
United States notes and silver certifi-
Gates. or the reserve money which the
banks of the country have sent In
agricultural districts OF all sections 20
settle up the years business, | say. n
these reserves now scattered broad
cast over the land we're In the banks.
where they properly belong. there
would have been no money panic this
fan.
"The proof Of this assertion Is con-
elusive. During the past four months
there has been sent from the banks
into the country districts approNi-
mately $500, 00O. 900 OF currency or
his amount s250.000,0O0 approxi-
mately was reserve money. which, N
t were now In the banks. would serve
rs a basis OF more than Al ,25o. 100000
'red''s or loans. and the present crisis
would have been avcrted.
This result could have been accom-
Dllshed without increasing our bank
reserves 10 the extent OF a single dol
lar. without increasing the Liabilities
lf the banks Of the country to the eN-
lent OF one cent
II challenge any man 10 contro-
vert this statement and suhmi fN"
following ne absolutely conclusive
proof OF the assertion;
III the banks in which the t2s0.-
boo. 0oU had been deposited had been
authorized. ss they should have been,
o create bank note credits as well as
bank book credits. and they had pro-
'ecded % convert this t250.000. goo Of
iHnE book credits into bank note
.redifs the banks would not have
icen affected ln any degree or In any
pay whatever and the whole country
would have been amply supplied with
.urrtuey with which to transact all
DE far business.
How could this have been donee
.imrIg hy authorizing each bank to
ssue cashiers checks payable 20
,carer which is a current credit. that
h. credit that passes by mere delivery.
erulring no endorsement By this
.roerss the $3.50. 600. 900 0f bank book
redifs would have been converted
ltl bank note credits. and as the re-
crvea required FOR both forms ~
rsllfs should be the same. there
b the situation. The bank debt -
le same. n has been only a matter
& bookkeeping
IAN issue of credit currency ade-
uate 20 meet the requirements ofs
.lde and currently redeemed IN gold
lin. j. e principle followed by every
yiiiEed country In the world except
ur own.
Mark this. The banking power of
ie United States in 1880 was about
re billions. aud nov exCceds sixteen
ilion duilars-or equal 10 the entire
ankiuE power Of the world IN iSso.
hich MuihaU placed at t1ss5e .oeo.-
0og Today the banking power ~ the