New-York tribune., 1908-02-20
FOWLER BILL PRAISED.
Com parison Of It zcith Aldr'ch BM
to Disadvantage Of Latter.
rFron The Tribune Bureau.

Washington Feb. IA comparison Of the Al
drich and Fowler currency bills by Charles g
Conant LYMAN J. Gage and Joseph French Johh-
c+on read Of the New York School Of Commerce.
ar a hearing before the House Committee on BANK
ing and Currency to-day, was decidedly unIaVoi-
able 10 the former measure and gave the advocates
of REPRESENTATIVE Fowler's scheme renewed nope
The Aldrch bill was severely criticised by each OF
tho sneakers as was the present financial system
Of the country. Each advised radical change'
and protested against a 'makeshlft sareguaro 10
aIlav %panics when the real hope of the country
lies in the establishment OF sound currency
basis"
Mr. Colant took the ground that the present Con
gress had more than currency problem on lis
hands and one which demanded a readJustnleht OF
the entire financial system with view TOWARD
aaihiIitv and adaptability He said that these ends
were attained in the Fowler bill, and that the pas
sage of that measure would be a long step IN the
right direction. He quoted portions of the recent
speech of Mr.. Aldrich. in which the Senator from
Rhode Island spoke Of the general demand for re-
form, in banking methods and explained the danger
of expsnsion and initiation. Mr.. Conant insisted
that the Fowler bill anticipates these evils, while
the Aldrich bill does not correct them
He EXPRESSED the conviction that the Fowler n1i
meets most of the difficulties of the present sys-
tenn and establishes a currency plan which would
ne a cohesive whole, besides inducing Co-ordna-
tion and mutually among banks. Speaking OF the
panic, Mr.. Conant said IL was caused by a tre-
mendous expansion of loans upon security and he
axn-essed the opinion that the officials of the
Knickerbocker Trust Company were guilty OF
criminal violation of the banking laws by accept
ing securities of a doubtful value and giving
nrornise to nay depositors demand. He pointed
out that shrinkage in property values of more
than five billions gave ample evidence that too
much money had been loaned bad securities
He also coutended that the crash should have
been worse under present system and said
that the one thing which saved the country from
an overwhelming stringency was the fact that the
people knew the government would pay its obliga-
tions in gold. Mr. Conant argued that the pro-
visions OF the Aldrich bill would only apply when
the country a terrible panic, because of the
6 per cent tax and he said that the proposed
tension of the bond secured currency
than any measure ever proposed by South Ameri-
dictator
scheme for the government guarantee OF deposits,
although he said that the latter idea could only
safely be Incorporated with coordinate measure
such Mr.. Fowler proposed. In support of
bank he mentioned the experience of Japan,
which country tried the bond secured system and
found il a failure and then took up the central
bank with the result that specie payments were
suspended during the with Russia.
Mr.. Gage also spoke in favor of the Fowler bill,
which he said proposed only that which
proved success in other countries.
Mr.. Johnston argued along the same line and
each of the speakers. when questioned by the
mittee said that he would prefer no legislation
all to the Aldrich bill.