New-York tribune., 1908-01-09
FOR CREDIT CURRENCY
FOscler Bill also Provides Guarantee
for Bank Deposits.
fFrom The Tribune Bureau.l

Washington Jan s-Prefacng his remarks with
the declaration. in effect that to enact the Aiorc
financial bill would be Just as serious ana lata
mistake as to have adopted free silver as the
standard of value 1856 Representative Fowler, OF
New Jersey. to-day made public the draft OF the
bill which has been formulated in the suo-commlt
tee of the Committee Banking and currency, OF
both of which Mr. Fowler is chairman Mr. Fowler
then announced the provisions Of the BILL which, In
his judgment should be substituted for the Aidrich
measure The most important features Of the bill
the provision for national bank credit currency
federal guarantee of national bank deposits an
authorization of national banks to perform all the
functions performed by trust companies. ano
the creation of a redemption fund in the National
Treasury. to be accumulated by the collection from
national banks of per cent of their annual de-
posits per cent of all national bank guaranteed
credit notes. of per cent on such circua-
ton. and per interest to he collected on gov
ernment funds deposited in national banks
This measure is along the general lines Oh
former Fowler bills. Mr. Fowler believes in the
wisdom of his measure. but doubtless understands
that 1t will not be seriously considered by the
Senate. He Will not, however. permit his per-
sonal convictions to interfere with favorable ac-
ton by his committee on the Aldrch bill.
There are many members of the Senate VINO
favor federal guarantee of all deposits in national
banks, and vote on the proposition is expected in
the Senate Committee Finance and may even
be reached the floor of the upper House. but
VIII receive the favorable action of Congress
Aside from this there few provisions in the
Fowler bill which would be likely to receive favor
able consideration in the House
Mr.. Fowler's statement follows:
We are to-day with regard to financial and
currency practices exactly where we were in 1885
with regard to standard of values and to de-
eide now to make all kinds of bonds the basis of
currency would be just as ser.0us an fatal a mis-
take as TO have adopted Ever then as sur standard
OF value The time is opportune. the cirL instances
are auspiciouS, and careful investigation of all
the facts and conditions justies the conclusion that
Congress can and should SO egislate as to bring
about these results:
First-A uniform banking system.
Second-U inform bank reserves consisting of gold
coin or its equivalent.
Third-A simple and scientific monetary system
consisting of only three forms of currency: Gold
for our bank reserves; bank credit notes. redeem
able in gold for the larger bills; and silver for the
smaller bills and subsidiary coins.
Fourth-A currency automatically adjusting itself
to the demands of trade too great, never too
small but always just adequate to our require
Fifth-Equal and absolute protection to all de-
postors in national banks by placing in the United
States Treasury guaranty fund, which, by Janu-
ary 1909. ought to approximate s500,oo000o
Sixth-The establishment of certain rules and
regulations whereby the financial operations of the
Treasury shall be Sc conducted that the gov
ernment willscease be disturbing factor in our
trade and