The Washington herald., 1908-01-27

Chairman Fowler of the House Com
miItee on Banking and Currency, win to-
day explain his bill to the members of
the House, in case the District legislation
is completed before adjournment
His committee has had two hearings, at
which members with bills of their own
have appeared. and the discussion over
the merits of the Fowler bill has become
so general that the chairman believes
that by taking the floor and answering
questions more can be accomplished than
by continuing the hearing in the commit
tee room.
Members of the House are emphatic in
saying. however, that the Fowler bill will
not be passed. Many who are not in
favor of the Aldrich measure will not
commit themselves 10 any other. and the
general belief is that the powers viii in
sist upon the passage Of the Senate bill.
The Speaker Is said 70 have become quite
dissatisfied with the attitude Of the MEM
bers favoring the Fowler bill. and will use
the party lash. il it becomes necessary. to
throw support TO the Aldrich plan.
Need No Legislation.
John A. NJ Adair. a new member OF the
House, who is a banker. is one Of the
many who favors neither bill. He comes
from a district where the aggregate de-
posits represent a much greater per cap
ita clientele than in many other sections,
and as a successful banker he insists that
the country does not need any financial
legislation.
There is nothing wrong with our 1nan-
clal system" he said yesterday. discussing
the BILL
Further. we have all the money in the
country we need. What We do most ur-
gently need is some measure whereby
public confidence can be assured, and if
We can get it. there will be no further
need for discussing financial relief meas
ures.
This last trouble was not because Of
a lack of money. 1t was lack Of conf
dence, brought about by the overcapitali-
cation of all kinds OF companies. When
Investigations began 10 show what was
going on, European holders were the first
to unload stocks In New York. Then
the prices began 10 drop Shareholders
didn't know whether their stock repre-
sented 100 cents or 30 cents on the dollar
They were frightened. as we'll they might
be Bankers held to their money because
great sums had been loaned on collateral
that time had shown TO have a fictitious
value. II they paid out their available
money. and then started in to realize on
stocks from which the water had been
squeezed, there would not, ! venture 10
say. have been 3 per cent of the New
York banks in a solvent condition.
OveFcHpitaIizatIOn the Trouble.
Now what We want is a law providing
against the oveTeapitaIization of concerns
doing an interstate business. The States
would soon fall IN line by way Of gov
erning those doing only a State busl-
ness Then buyers Of stock would know
that a dollars worth of stock represented
100 cents worth OF bona dde interest in
the company. Bankers who loan money
on it would know that if necessity arose
for a realization, they would not be forced
10 sacrifice.
Then we should have a law insuring
depositoTs against loss in national banks
similar 10 the laws governing the banks
in many States Picture, then, the con
ttlllDiia- LcpusllUISr certain INey could
not lose, would not, in squally times, rush
20 withdraw their money Bankers, as
sured they could realize on collateral.
would not suspend or partially suspend.
payment until they were assured OF their
grounds. Enough money would remain
In circulation 70 carry on business al. all
times without the necessity Of any patch
work legislation.
Eastern Bankers Object.
The principal objections 10 a plan of
this kind come from the Eastern bankers.
Il Is but natural they should not ap-
prove such a plan, because it would mean
that much of the money now deposited
in Eastern banks. where il can draw but
or ? per cent. would go to the Western
banks. some OF which can afford legiti-
mately 10 pay as high as per cent.
As / have said. I am banker, and I
think I know something about banking.
As such / viii not vote for a measure.
however that is not calculated to benefit
the condition Of the people generally.
1 am confident. and the repetition of his.
tory in the past 200 years has shown. that
II IS Observation-Disclosures its equivalent.
overconhdence in speculative values-that
such a remedy would put an end TO the
periodically recurring panics with which
We have been afflicted" "