The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-03-15
BURTON ON CURRENCY.
Files Minority Report Opposing TIL
Fowler Iiill.

Files Minority Report Opposing the
Fowler Bill.
WASHINGTON, March 1i.-Repre
sentative Burton, of Ohio, to-day sub
mitted to tho House his minority re-
port rs IA member of the Banking and
Currency Committee Committee dis
senting from the majority report,
which recommended the passage of the
Fowler currency bill. Mr.. Burton's
report concerns itself wholly with the
Fowler bill and his reasons for oppos-
ing 1t. and makes no reference to either
the Aldrich bill or the Williams bin.
In his report Mr.. Burton says that
lie does not regard the passage of the
Fowler bill as either practicable or de-
sirable at this time.
THE bill" he said. makes elabor-
ate provision for the changed condi-
tions which would exist by reason of
tho adoption of its. provisions. 1t has
many features which will meet with
very general communication, and no
doubt If legislation should be framed
for the original creation of Il banking
system many of them would be adopt
ed. 1t contemplates the issuance of
bank notes against assets in accord
ance with the demands of business,
thereby giving elasticity to tile cur
rency and adjusting its volume to the
Il VI II may ne Spl-
ceded that this, is tile most correct
principle for the issuance of currency"
After citing further provisions of
the bill. and admitting the soundness
of their theory, Mr.. Burton says:
AT the same time the. measure is
most revolutionary in its character
The changes contemplated are quite a.
radical as have ever been attempted
in any advanced country save under
the stress of highly exceptional cir.
cumstances, such as are created by
war or a change in the form of gov
ernment, For more than forty years
there has been currency, which, how
ever, unsatisfactory it may be in i'm
portant particulars, has possessed the
quality of undouhted security. Tie
people will not readily consent to SO
marked departure as would be in
SolNed in the substitution of a
: guaranty fund which IS expected IL
secure not only a probable one billion
of bank notes, but thirteen billions OF
deposits.
While the voluntary agreement OF
+ banks for the guarantee of common
deposits is worthy of universal ap.
prova, compulsory guaranty is dan
Serons and unprecedentod,'' says the
representative. such IA provision
of prudencstand honesty and the one
who is at'eless aud ready to resort to
questionable methods.
If there is any hne of business In
which care and conservatism is essen.
tial 1t is banking. This proposed regu-
latton places those Very qualities at q
disadvantage and gives q premium tc
those who are guilty of reckless an(
dishonest management. Under
guaranty of deposits the money of de.
positors would inevitably gravitate t.
banks or financial institutions in specu
lative centres, because higher rates o.
interest could be obtained there. Th:
result would be that capital would b,
Invested in manner which would b,
sure to lead to speculation and TO un
successful undertakings. In the Ions
run the public, as in the case OF al
oppressive or unnatural regulations
would be compelled to bear the loss
either In the form of higher rates o
I interest or OF lower return upon de
Dosits"