The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1907-11-08
CURRENCY
NEEDED
New Jersey Congressman De
ciares 1t Will Afford Perma-
nent Relief-.-c Conditions.

New York. Nov. 6.--That permanent
gency can only be had through a sys-i
i ten OF credit currency adequate to
meet the requirements OF trade and re-,
deemable in gold coin Was the opinion
expressed today by Representatives
Charles Fowler, of New Jersey, cnair-
| man of the banking and currency COM
mittee, which will, at the coming ses-,
sion of congress endeavor to nave a
law passed providing FOR credit cur
rency issued by the national banks.
Until such permanent relief is made
possible by legislative anactments Nh.
Fowler asserted the situation must be,
met by the issuance of clearing hous
certificates, cashiers checks and due
bills of business houses and manufac-
turers.
THE underlying business conditions"
valid MIR. Fowler 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, 600, 900 more than last year (Which
was the highest year in u history
and are bringing to our people about
1000, 0OC, 900. but public confidence has
been greatly shaken and credit seri-
ously affected: therefore, every patri-
otic citizen. from the president down,
should do all in his power to restore
that confidence, which Is essential to
national prosperity.
The Banking Power.
Mark this: The banking power O
the United States il 1890 was abou,
SIS, 900, 600, 900 and now exceeds 10000
600, 900. or equal to the entire baking
power of the world in 1890, which Null
han placed at $15,9s5, 100000. Today
the banking power of che entire world
outside of the United States is only
s21, 952, 000, 900, n Of this amount 20
per cent, or more tlssl 1000. ono, 900. is
in cashiers checks OF current credits.
That is, credit currency. And vet while
the United States has thve~e-scvcnths OF
the banking power Of the entire world
it has not one single dollar of currency
bank credit, although TIE f~our-sevenths
of the worlds banking power has the
advantage of $4,000, 00O. 900 current
credit currency.
"On the same basis we are entitled
to ave $4,000, 100000 of currency credit
of credit currency.
aa of his is 1siz aa5,nt,. we gs j, b s9aa1S
be, our bank reserves might be in
| creased from an average OF 8 92-100
percent. to about 20 per cent, and
our banking liabilities remain practi-
cally the same.
Can amy one give a single reason
w ~ WV SAAoAAo AoS e. ~ 0oSAA "
credits for order n not use Il cur
rency credit of The same book on which
we draw our checks? Is not the cash
ier's check just as good as our check
on the same bank-indeed, far better
when protected, as it should be, by
a guarantee fund with the United
States government many times more
than ample to insure its redemption in
gold coin?
An 8 Per Cent. Increase. 8,
IF the banking institutions of the
country would exchange $1,000, 000, 900
of cashiers checks for 81, 600. 000, 900
of reserve money now floating around
in the minis, wheat, corn and cotton
fields. and this s1,000.OOO, 900 We're
added to the 81, 900, 200, 900 in the
banks on July 1. 1907, our bank liza
bilities would be increased about S
increased 100 per cent, and instead OF
our average reserve being about 10
per cent, It would be 20 per cent, and
this end alone is sufficient to justify
the adoption of the principle Of cur-
rency credits in this country.
Scotland has a credit currency is
sued by the banks that expands and
contracts twice a year at the rate of
Sl.22 per capita, or $500, 900.
THE same ratio woul give the
United States about $1,000, 900 900 of
credit currency, but we have not /
aeed 1t more than any country in the
world. France credit currency is is
sued by the Bank of France, which is
constantly expanding and contracting
throughout the yea at the rate of
.l.73 per capita, of $67. 600. 200.
United States $3.50. OOO. 900 OF credit
currency. e
Canada has a credit currency is
sued by the banks that expands and
contracts at h rate of 1929 per
The same ratio would give the
United States $3.50, O0O, 900 Of credit
currency. But we a none.'
hin TIT &c cAucE