Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-01-17
Fowler Discusses
Currency Problem

Boston, jan 16-"The Currency
Problem was the subject of an au-
dress delivered by Representative
Charles n. Fowler of New Jersey,
chairman of the committee on banking
and currency, delivered before the
Commercial Club of Boston at the
New Algonquin Club tonight On Jan.
S Mr.. Fowler introduced into Congress
bill ito establish a simple and scien-
tific monetary system, founded upon
gold, guaranteed bank notes, and sill
Yer, with uniform banking and bank
reserves in gold coin or it's equivelant
to guarantee all deposits and note L.
sues; and to fix certain rules and reg
ulatiOnS whereby the financial opera
lions of the government shall cease TO
be disturbing factor in trade and
commerce" In his address tonight,
Congressman Fowler said in part:
There is no consistency or uni
fornity in American banking as a
whole. Too little is actually known
about the condition of our banking
business. The situation has already
become appalling. and demands a uni
form banking system with uniform
reserves in gold coin. This result viii,
be secured by the bill now under con-
sideration by the committee on bank
ing and currency. To provide econom-
ically and adequately for the produc-
ton, transportation and sale of sucn
a vast amount of merchandise as We
are producing annually we should
have a simple and scientific monetary
system, consisting of gold for our bank
misunderstanding converted our United
int n,.fi 6fNat nsS
bank credit currency, redeemed in gold
for our larger bills, providing the true
medium of cash exchanges. and sill
YER for our smaller bills and sub
sidiary coins There Is more than
enough Of both gold and silver in this
country If placed where they properly
belong to meet the requirement of
each. This end will be accomplished
by the measure now before the House
committee, and We shall then be upon
equal footing with the rest of the
| world in this respect.
We should have q system Of cur
rency bank credits that will always,
with unerring certainty, come into ex-
istence with business transactions
precisely as checks and drafts do, and
disappear when they are no longer
needed That this most desired end
will be achieved by the adoption Of the
| measure now pending before the
House committee no one has yet I'M
dertaken to deny.
The government should cease to be
disturbing factor in the trade and
commerce Of the United States, and
should deposit it's receipts from all
sources every day with the banks of
he ".
ernments do. The bill before our COM
| mittee does just this thing.
The national banks now own about
all of the two per cent. bonds, includ-
ing the Panamas, or about 100000
900. Suppose we should have a great
war, a war calling for an issue of
| bonds aggregating two or three bill
lions, the rate would possibly reach
five per cent. At such a rate, the twos
| would sell for what? Seventy, IS or
possibly so, resulting in a loss to the
banks from $150,000.000 to s25O,000,-
900. How many banks could stand
their share of it without failure? The
same miship might possibly occur on
some other bonds.
The measure we are now considering
takes all these per cent bonds off the
iidiiuo VI Tue pdihS DIT tile prices PAID
for them. and places them in the guar
antee fund All the capital now invest
ed in these bonds, and all the capital
now invested in bonds to secure gov
eminent deposits, is returned to the
channels of commerce where it legiti-
mately belongs and where the trade of
the country can use it.
The structure of the bill now before
us is based upon that of our general
government. The autonomy of the in
dividual bank is preserved absolutely
and also the autonomy Of the CONNER
citl zores Of the United States for in
organizing the system, the country
win be divided into note-redemption