The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-12-09
FOWLER
TALKS. On
CURRENCY
PROBLEM
lRr Associated P-essA

Washington. Dec. Chairman
Charles n. Fowler OF the house com
mite on banking and currency gave
out tonight statement with regard
10 financial ami currency legislation At
the present session Of congress He
began by emphasizing the Importance
OF principles rather than of particu-
lar bills in this matter and urged "all
business men. bankers and lawyers,
who shouli inform themselves upon
this most important question before
the American people that they study
principles. "and." he said u hope my
suggt,tion may fall under the eye of
everyone VINO lakes an interest In
financial and currency legislation.
NO government should have any
demand obligations outstanding be.
cause such obligations weaken and
imperil the Gre lit OF the government
which it Is constantly losing in the
fo-m of bon'ei Indebtedness. No
government or any standing or conse.
auence nov has ANY demand obliga-
tions out.tmiing except the United
States, to = peril its credit and dis
tub and uhsettle the commercial con
dhions at any moment as well. There
fore our United Stffes notes should
be eliminated either by retirement or
con ersion into goll certificates.
"The reserves of the banks in any
country should be coined out OF the
standard of value of that country,
Cur STANDARD of value is gold: there
fore our bank reserve should be all In
geld or gold certificates which are the
same thing.
The only true and the most econo-
mic;l currency is an mtrammelled
ci-lit currency That Is, a currency
Fhich is interchangeable with Dank
leposltis that are subject 20 cneck.
Such a currency vecy greatly facili-
tatcs trade and commerce. ami pre-
vents currency panics. A bank is a
quasi-putlic institution le is related
net only 10 ITS but TO the entire com
munity where II is looatsl as well, al
50 to fhe commercial world OF the ma
tion Of which every bank is an integ-
lal part A bank differs distinctly and
very widely from the corner groeeTy
store and the butcher saop TO which
it has recently been compared be.
caUss they are local I'm every respect
+ cry bank Is q part Of that great
mechanism Of exchange by which the
buslrs Of the entire country is now
transac,ci. arl the whole is more in
timately related and more sensitive
than ever Ecfora IN the history of the
country because of our transportation
ami mail fsciliies. ana because Of the
use OF the telegraph and telephone
nomentarly and universally The
public character Of our banking Dusi-
ness has been very greatly seccDtua-
ted by taese forces. and any disturb
ance anywhere in The mechanism OF
exchange Is more 20 be fea'ol today
than ever Before on this account
"Salns Pcpul suprema est lex
the welfare of the people is a supve-
me law" How can we protect our
selves in a national sense from the
dire consequence of any local disturb
rncc Shich menaces tne business OF
the whole country.
"First. We should be able TO know
hot hthe quality ana the quantity OF
the reserves In every banking institu-
tion in the Unite3 States This can
only be done by ono single admins
tation of all the banking institutions
[ ~ ~ tantuAtdl l4ldl lht ifotl We oilhiiih
/ be gold and not bank notes nor United
States notes both OF which n-e mere
demands ior money nor any other
form OF credit because credit based on
other credit is the source of imitation
which must inevitably lead 10 com
mercul isaster. II tle reqnirei re
reserves Of orr national banks of T.
All 25 Fer cent. respectively for ths
va ions cities OF the country are es
sential to sound banking then though
the reserves are actually in gold bu
I'm fact am. ant 20 onls ten o. Ave PEI
cent, or practically nothing. credit hai
lcxpaI ed to a breaking and ruinOus dc
gree and commerce generally mus
pay the penalty. This Is Just wha
happened in 1907 The reserves IA
our state banks and trust companies
had fallen to about . per cent, an
even these reserves were largely II
bank notes. How can iSe prevent
recurrence OF this same coniltion
/ Che answer alone can be me ie-b
the uniform administration OF ou