Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1907-11-06
A Plan Z. an For a System of Credit
: Currency Outlined
A SCHEME 70 OBYIATE PANICS
Permanent Relief From The Monetary
stringency, Declares the Chairman
f.the Banking and Currency COM
mittee Of the House, Can Be OBJ
tanned. Only by That Enactment
he Points Out the Cause of the
Present ,Stringency and Outlines
the Real Situation.

'tary' stringency can only be had
through system. Of credit currency
adequate TO meet the requirements Of
trade and redecmable'- in gold coin
was tile opinion expressed by Repre-
sentative Charles N Fowler, Of New
jersey, CHARM III of the banking and
currency committee Of the House,
which will. at the coming session Of
Congress. endeavor to have a law
passed providing for credit currency
issued by the national banks. Until
such permanent relief is made pos
sible by legislative enactment, Mr..
Fowler asserted, the situation must
be. met by the issuance Of clearing
house certificates, cashiers checks
and, due bills Of business houses and
manufacturers.
s.The underlying business condi-
TONS" lie said to the Associated
Press, "are essentially sound as evl-
.denced by the increased earnings Of
the railroads and the fact that the
value of our agricultural products
this year are $5OO,OOO,OOO more than
last year (Which was the highest year
in our history, and are bringing to
our people about $IOOO,OOO,oo0. But
public confidence has been greatly
shaken and credit seriously affected;
therefore, every patriotic citizen from
the President down, should do all in
his power to restore that confidence
which is essential to national pros
perity.
Cause of Stringency.
MThe cause Of the currency strin-
gency is that there is scattered broad
cast throughout the country, at the
mines, in the wheat, corn and cotton
fields, in. the pockets of the people or
locked up about $l,3OO,OOO,OOo Of the
reserve money of the. United States
most of which underta proper condi-
ton would be in the banks, serving
as reserve. Temporary relief will be
through the forced use Of current
credit nathe form of clearing house
certificates; cashiers checks and due
bills of business and manufacturers
during tile next 90 days. The pcrma-
.nent cure must come through a sys-
tenn of credit currency expanding and
contracting with the ordinary de-
mands Of the smaller trade. precisely
as checks anl drafts do in the broad
er field of commerce.
owe have now proceeded far en-
ough into the present financial, crisis
to get a pretty clear perspective OIL
the real situation.
The Real Situation.
"First-the condition is now gen
eral, reaching every nook and corner
Of the country.
"Second-If the gold certificates,
the United States. notes and silver
certificates, OF the reserve money
which the banks of the country have
sent into the wheat fields of the West
and Northwest, into the cornfelds oil
the West and Southwest, into the cot
ton fields Of the South and into the
country districts of all sections to
settle up the years business, Il say
if these reserves now scattered broad
cast overland were in the banks
where they properly belong there
would have been no money panic tbs
fall.
"The proof of this assertion is con-
elusive. During the past fonr months
there has been sent from the banks
into the country districts approx
mately $3OO,O0O,OOO of currency. Of
this amount $25O,OOO,oOO approx.
mately pow in the banks, would.
serve as basis Of more than $780,
100000 credits or loans, and the pres
eut crisis would have been arertcd,
This result could have beeh accom-
plished without increasing the liablli-
ties. of the hanks Of the country TO.
the extent of one single cent.
Lays Down Challenge.
''I challenge any man to eontro-
vert this statement and submit the
following as absolutely conclusive
.psoef ,ofythe ,assertien.sIf. the banks
.of the country in which Rs25o,OOO,O0o
had been authoratized as they should
have been, to create bank note credit;
as well as bank book credits, and
they had proceeded 10 convert This
$3.50 100000 of bank book credits IN
to bank note credits tile banks would
not have been affected in any degree
or in any way whatever, and the
Whole country would have been amp
" supplied with currency with which
to transact all the fall business"
Chow could this have been done :
Simply by authoizing each bank TO
issue cashiers checks. 10 bearer,
which IL carren credit.
That is, credit that passes
by mere delivery, requiring =, no
endorsement. By this process credits
would have been converted into bank
note credits and as The reserves re-
duired for both forms of cerdits,
should be the same, there could have
been no change whatever in the slsua-
ton. The bank debt is the same, the
amount of the reserve is the same. 1t
has been only matter of book-keep-
inc. An issue of current credit aoe.
ouate to meet the requirements OF
trade and currently redeemed IN
gold coin is a principle followed py
every civilized country in the wosi'l
except or own.
Worlds Banking Power
,.I-,,l. MS. Tho banking power