The Birmingham age-herald., 1908-03-15
BURTON OPPOSE s
 THE FOWLER BILL Says Measure.Is Not Practica-
 bIe or Desirable REVOLUTIONARY IN FORM MT. Burton Says Fowler Bill is Net Necessary at Present Time and It Would Place Honest and Dis
 honest on Same Level.

Washington, March 4.-Representatlve
 Burton of Ohio today submitted to the
 House his minority report as a member | of the banking and currency committee, | dissenting from the majority report which | recommended the passage of the Fowler l currency bill. MT. Burton's report con- cerns itself wholly with the Fowler bill, I and his reasons for opposing it and makes | no reference to either the Aldrich bill or
 the Williams bill the latter measure hay | ing been recommended by the democratic l members of the committee in a minority | report.
 l In his report MT. Burton says that he | does not regard the passage of the FoH- | Ter bill as either practicable or desirable | at this time.
 ''The bill." he says makes elaborate l provision for the changed conditions
 which would exist by reason of the adop- 1 tion of it's provisions It has many feat | ures which will meet with very general commendation, and doubt if legislation should be framed for the creation of
 Tn the long run the public as in the | case of all oppressive or unnatural legis- lation, would be compelled to bear the banking system, many of them would be adopted. It contemplates the issuance of bank notes against assets in accord | ance with the demands of business. there by giving elasticity to the currency and adjusting its volume to the requirements of trade. 1t may be conceded that this
 is the most correct principle for the is suance 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 it's character. The changes contemplated are quite IS radical as have ever been attempted in any ad- vanced country save under the stress Of highly exceptional circumstances such as are created by war or a change in the form of government
 For more than 40 years there has been a currency which however unsatisfactory it may be in important particulars has possessed the quality of undoubted secu- rity. The people will not readily consent to so marked a departure as would be involved in the substitution of q guaranty fund which is expected to secure not only a probable one by bank notes, but thr- teen billions of deposits.
 While the voluntary agreement Of banks to guarantee commerce is worthy of universal approval compulsory guar anty is dangerous and unprecedented says the report.
 Such a provision places upon the same level the banker of prudence and honesty and the one who is careless and ready to resort to questionable methods If there Is any line of business in which commerce and conservatism is essential, it is banking. This proposed regulation places those very qualities at a disad- vantage and gives a premium to those who are guilty of reckless and dishonest management. Under a guaranty of de- posits the money of depositors would in- evitably gravitate to banks or in financial institutions in speculative centers, be- cause higher rates of interest could be obtained there. The result would be that capital would be invested in manner which would be sure to lead to specula- ton and to unsuccessful undertakings. less either in the form of higher rates of interest or of a lower return upon deposits"