New-York tribune., 1908-03-12
F4TORS FOWLER BILL.
Horace White Says 1t Takes 4zcdy
Al Soft Money Cushions.

Washington March 1-Representative Fowler.
chairman OF the House Committee on Banking and
Currency and author of the Fowler bill has re-
the following letter from Horace white con-
cerning currency legislation:
When this session of Congress began considered
it unwise to attempt 10 amend currency system
by a single comprehensive measure dld not
then think that the public nllnd was ripe Iof H.
although the discussion has been going on, In
limited circle Tor nearly Iteen years an So to 'e @
the American Bankers Association. except that
OF the circulation.
II. however. the people are prepared. as they
a root and branch measure OF reform Ike that OF
House bill No i2;o't tine Fo%leg o1' "a sil@i Gun
It is a great merit that the bill reaffirms the
principle that gold. not government debt. is the
true basis OF a proper currency. II proposes TO
take away all soft money cushions and faise props
OF monetary system which might Iait US IN a
When the Civil War came a large part of our
currency. based upon state bonds fell to DIS
count ranging from 10 10 30 per cent Before the
fou to a stiII lower price. and the greenbacks
ulaned below par for more than sixteen years
such chances. even though the risk OF war or in
ternal CONFUSION nov seems to be slign{c II IL
conflict with foreign powers Is II not the part
currency on a sure foundation, especially when is
can be done without expense
The plan proposed in your phi rs teasloe ana
will accomplish the end sought. without any dis
gold needed is within easy reach -
The next most important feature Of the bill -
cies and supervision of the banks by each other
Most hank failures caused by speculation with
the FUNDS Of the bank by improvidenc loans % the
officers and friends and favortteS. IN violation
of law Put 4 stop TO such loans and You practi-
talIv insure the depostOrs. nOtehodeTS and share
holders against loss
7 basr that the banks Of Chicago. 81 Louis ard
Kansas C'ttv taking steps voluntarily for Sucn
I1IItraI examination and supervision THIS IS 4
sssocist tions Far better is frequent examination
nv ones naighhOrs and rivals in business than z
ds rOsis hv the Controller after disease has set IN
Win this practice esra blishe By law the mutual
insurance Of both deposits and clrcularion pF
means of q common guarantee fund deposited "
the Treasrr will De q very simple matter Such
coinsurance cannot be considered either parernal
Ism or socialism The government does nothing
r,,- hold the money contributed bv the banks
themselves paw II 70 those entitled 20 re
ceivA II -. - - ,..r..-- -,.t.
rhe large ones as regards capital earning capac
hiliry failure IS untrntzSd- and
+bia IL an advantage 70 the whole banking frater
nit and 70 society in general -, - =. -
-be yerre=rtn section Of the bill z provtso that
+ba government shall NOT incur any liability n re
znec+ ~ the guarantee fund. except for irs safe
i5ssari,o and disbursement according 70 law.
1.tior notes and deposits are alike potential de
! roanGs on the banks cash reserve and thar the
ho1Lar cannot eterrnine which OF the rUo forms
bis la hrias shall assume, and that IL is matter
of Indifference 70 him which form they DO assume
- most desirable. however. 70 the community
that his customers shall have the
1rivjIage OF exercising their right 70 draw upon
pe hank in the form which they prefer A con
siderable argument might be written on thts text
but 7 forbear TT, 49,, ... - 49, VI.
Lar+1t tszocfsrion OF New York in favor If your
hITU dated February Il. lspe