The Birmingham age-herald., 1907-11-04
FOzoIer Wants System
 Of Credit Currency
Chairman of Banking and Currency Committee of Congress Says That Until Something of This Kind Is Adopted Stua tion Must Be Met With Clearing House Certificates,
 Cashiers Checks and Due Bills

New York, November 3-That perma- nent relief from the present monetary stringency can only be had through a sys- tenn of credit currency adequate to meet the requirements of trade and redeemable in gold coin was the opinion expressed by Representative Charles \. Fowler of New Jersey, chairman of the banking and currency committee, 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, MT. Fow by the issuance of clearing house certif- cates, cashiers checks and due bills ot business houses and manufacturers.
 .'The underlying business conditions" he said to the Associated Press today, "aIe especially sound as evidenced by the in- creased earnings of the 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 people about s7,oO0,0 GOO, 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 re- store that confidence which is essential to national prosperity. The cause of the currency stringency is that there are scattered broadcast throughout the com- try, at the mines, in the wheat, corn and cotton fields, in the pockets of the people or locked up, about $1,3Oc, 000 of the reserve money of the United States, most of which, under a proper condition, would be in the banks, serving as reserve. Tem- porary relief will be through the forced !" SC of current credit in the form of clear
 g house certificates. cashiers checks
 i'd due bills of business houses and man.
 facturers during the next 90 days.
 The permanent cure must come through
 system of credit currency expanding md contracting with the ordinary de- hands of the smaller trade, precisely as lecks and drafts do in the broader fields Of commerce.
 We have now proceeded far enougd into the present financial crisis to get q pretty clear perspective of the real situ- ation.
 q. The condition is now general, reach ing every nook and corner of the coun- try.
 ..2. If tie gold aertifeates, the United States notes and silver certificates, for 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 country districts of all sections to settle up the years business l say, if these re- serves now scattered broadcast over the land were in the banks where they prop erly belong, there would have been no money panic this fall.
 Proof of Assertion.
 s'The proof of this assertion is conclu- sive. During the past four months there has been sent from the banks into the country districts approximately $300, eco of currency. Of this amount S250. .00b0 000 approximately was reserve money, which, if it were now in the banks, would serve as a basis of more than S1 ,250, coo, GOO cred