The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1908-01-30

tAaA Special 10 tie AdSeEtlseIJ
WASHINGTON, January 12.-some
members of the Finance COMMITTEES
think that railroad bonds should be ell
minated from the Aldrich bill. and some
think those bends should not be elm
mated Perhaps the most intense u
all the skirmishes over the bill win
be upon that feature 1t will have 10
be fought out in the Senate as weIl
as in the Finance Committee and the
House, although in a state of subjec-
ton to fhe Speaker, may have word
of debate about II. There is also talk
about increasing the amount of cur
rency that can be taken out on 800
worth of state. municipal or railroad
bonds Some would make 1t as much
as sS5 or $50. where, as the bin was
introduced, only SIS would be allowed.
Critics also claim that the bin is
full of holes, and that it would put
more dollars into the pockets of the
spectators and bankers in New York
city without helping the country in
time of financial paric It has been
pointed out that there is still no pro-
hibition upon clearing certifi-
Gates, which We're in circulation in
nearly every large American city AMI
to a large extent are now in cfrcula-
ton as the result of the December
panic. It is claimed that if another
stringency comes, the banks of large
cities may find it easier and on the
whole profitable TO put out clearing
house certificates as heretofore rather
than take out the heavily-taxed
emergency currency. 1t is supposed
that clearinghouse certificates are IL
legal, but the Treasury Department
has hesitated to raise that question,
because when clearinghouse certifi-
Gates are issued the country is gener-
ally in the throes of a panic. and it
would only accentuate the panic by
bringing the legality of that kind of
paper prominently TO the public view.
Then the advocates of asset or credit
currency, as against bond-guarantee
currency. point out that it can afford
comparatively little, if any, relief, be-
cause so much money will be neces-
sarily invested in the bonds on which
to obtain currency from the Treasury
Department OF course, the bill pro-
vides for having large quantities of
bank notes Of the emergency variety /
on hand for shipment TO national |
banks applying for emergency notes. !
The machinery for distribution of the
new money is otherwise facilitated TO
the utmost
Over against this Aidrieh bill, destin- /
I'd apparently to become a law, several /
1ther panceas have been offered. The
most prominent of them is bill just i
Introduced by Representative Fowler, |
chairman of the House Banking and /
Currency Committee. He is q Repub- /
lean, in disfavor with the Presi- /
lent for holding the latter responsible |
n large part for the financial troubles /
and for criticizing the administration /
FOR issuing Treasury Notes. He is in /
iisfavor with Speaker Cannon because /
1e CFowler) is a strong advocate of /
asset currency, which Speaker Cannon
opposes. Nevertheless Mr.. |
Fowler has been a long time student /
# finance, is a man of large property |
Ind his views are probably entitled TO /
confederation. He proposes a much |
lifferent remedy. which would require I
10th space and time to describe ade-
luately. In a word Mr.. Fowler would !,
etire the present bond-secured circu-
alton Of the National Banks. He
would allow the banks to issue notes
n guaranteed credit" which means
hat the notes would be based upon
he banks own credit and resources.
n addition he would back the notes
urther BY a guarantee fund of gold or
Is equivalent deposited with the Treas
Try Department It would be COM
,esed of five per cent. of the banks
eposits during the year. five per cent.
{ its n0re issue. a two per cent. tax
pom circulation As soon as a bank
as a certain amount of deposits the
government would be allowed 10 make
eposits OF its own funds with such
anks at a moderate rate of interest.
The Fowler bill is much more elab- ;,
rate but these are its essential fea-
ures It is not being given as much
ttention. probably, as it deserves be-
ause Of the knowledge in Washington
hat the WAYS have been creased for
he AIdrich bill TO go sliding through.
here is a strong sentiment in the
ountry undoubtedly for very thor
ugh overhauling of the currency sys-
srn. under the conviction that the pre-
.nt patchwork system should no long
BE- tolerated and that there viii be