The Detroit times., 1909-01-20
CREDIT CURRENCY
FOWLER s PLAN
OF FINANCING
NEW JERSEY CONGRESSMAN DE
LlvERs INTERESTING ADDRESS
BEFORE BOARD OF COMMERCE
ARCHITECT KELsEY's TALK.


Board OF Commerce banquet. In the
Wayne hotel. Tuesday evening. Con
gressman Charles y. Fowler. Oh Ne"
Jersey chairman of the house banking
and currency committee, proposed MS
idea OF a perfect money system or tue
country and detailed the errors ane
Weaknesses OF our present system :
Albert Kelsey. Of Philadelphia, arcm
tect. explained the yalue'increase oe
rived from Identification OF cities.
Unlike as were the topics. each one
was of great interest. and the largest
attendance that the Board or COM
merce has had at such meeting was
held interested by the two masters III
their lines until nearly midnight Mosl
of the local bankers had mace II
point 10 be present To hear the row
Ter speech, and they TOOK part III
quizzing him afterward.
Fowlers plan. briefly. Is the substi-
tuition for bond-supported currency
and greenbacks of currency Daseu
on the commercial. three-name paper
held by banks, credit currency. nc
would have the banks OF the country
group together in districts OF zones
each 10 be In charge OF committee
of seven bankers, and one OF these
seven to represent the district In a
central body In Washington. BY hav'
ing each bank put up per cent OF its
deposits as gold fund, he would ac-
cumulate "A billion OF gold In Washing
ton, to serve as guarantee or all the
bank credit currency OF the country.
This gold could be used for making
loans OF $4,000, 900 a. times TO differ
ent districts as crops needed moving,
thus supplying elasticity in. the money
market. He opposed the central bank
scheme vigorously.
Congressman Fowler began by warn
ing his hearers that, unless the COM
mercial interests OF the country take
action, we may get legislation that VIII
be regretted for 100 years, financial
laws not being so easy to change as
tariff laws. The banker will always
take care of himself. no matter what
the medium OF exchange. Guaranty OF
bank deposits, backed by competent
supervision OF banks by bankers, he
justified by saying that 1t Is personal
ity that makes a bank.
Weakness Of Banking System.
Bank resources had increased from
five TO Is billions In this country in 20
years, but the weakness of the bank
ing system was shown In the panic OF
1907, when the people not only ran on
the banks but the banks ran on one
another In the large eastern cities,
he estimates, $3.50 100000 of money
was withdrawn from circulation and
placed in safety deposit vaults.
You bankers insure runs with your
advertisements which tell the people
that. IL they want their money 10 bc
really safe, they can put 1t In your
safety vaults" he declared.
Faults OF the present currency were
shown, Congressman Fowler declaring
that currency increased when ii paid
bankers to speculate In bonds, and de-
creased at other times. the movement
being often exactly the reverse Of the
natural movement, currency decreas-
ing in prosperous times The green.
backs he referred to as issued origin
ally for civil war mules and never re-
tired because both parties were too
cowardly TO do the right thing.
III every city national banks live
In unholy relations with trust compan-
les" declared Fowler, explaining that
the banks juggle their reserves. and
transact lines of business not legal
for them by having a trust company
upstairs or in the basement. Present
methods. he stated. instead OF keep.
ing gold in the banks as reserve
for a large amount OF credit, tend TO
force 1t out into circulation where IL
can carry on only its face value OF
the country's business. He paid a
glowing tribute to Grover Cleveland as
having saved the country in 1894 and
declared that the same dangers Cleve-
land faced endanger the country now.
The sub-treasury system, the speak
er declared to be a curse to the coun-
try. and he added that not more than
few of the many men who have been
secretaries of the treasury and comp
trolers OF the currency nave had
any fitness for their places. The
cOuntry's bond-secured currency
would fail in case of great war, and
the issuance OF great quantity OF
government bonds which would force
the price of bonds down. In detailing
why he expected his plan To succeed,
II adopted. Congressman Fowler said !:
Il depend upon cupidity, pure self
ishness. and it gets them every time.
IF we had such a system as | have
detailed, there never would have been
any Walsh failure in Chicago or
Morse failure in New York. Such n
board OF control would have power To
order a bank president or cashier 10
step out. No new bank could start
without its o. X.
At the close OF his remarks Con.
gressman Fowler was given a rousing
send-off and later Detroit banker
arose and put n motion that the De.
troit Board OF Commerce ask Presi-
dent Taft to promote Congressman
Fowler TO the secretaryship OF the
treasury, which went through with a
whoop.
Albert Kelsey talked on city build.
ing and demonstrated just how real
and actual profit in dollars had been
made by foreign cities In carrying out
beautiful Improvement plans. He also
touched on the work that is beginning
In various American cities. the awak.
ening 10 the merits OF aesthetics
Detroit was rOundly scored time and
again. butl every point was presented
so convincingly that no one dissented
to the criticism. He began by revert
ing TO the exec ptionally good original
plan OF Detroit which has been aban-
doned except with regard 20 small
space in the heart of the city.
The scity has great natural advan.
tages. yet. since YOU acquired Belle
Isle and laid out the boulevard what
hyvp ypu doup9" ipuufrad KaIoay
What is there along your river to