Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1909-10-27

winch II was likely that the bond
circulation in the long run would be
wiped out and the entire currency 9ut-
terly depend on the uncovered assets
of the banks. The tax was TO create
a guarantee fund as under the New
York chamber of commerce plan. but
in addition to that the holder of a
note was given prior lien on the
assets of the bank.
1t was this feature witch 81 the
Boston financiers criticised, because
they say that debt in the form of
currency is exactly the same as
debt in the form of deposit and
that neither can be preferred to the
other without bad, effect, because
| if the currency were prior lien the
deposltors would convert their credit
into currency. which, of course. would
put an end to the general business
anyway.
Boston Likes Fowler Bill.
l hive found here in Boston a. friend
ly disposition toward what is known
as the Fowler bill, which takes its
name from the former chairman of
the committee on banking and cur
rency. who was recently deposed by
| Speaker Cannon. These substantial
Yankee finaneiers. like the. basic
idea of the Fowler bill, which is that
gold, and gold only, should be the
foundation stone of any currency
rather than the credit of the gov
ernment or the credit of the banks.
Mr.. Fowler made a general applica-
ton of the theory that an obligation
in the form of currency WAS in no es-
sential different from an obligation
in the form of a deposit and that
the two should be guaranteed in ex-
actly the same way, inasmuch as
; they were readily convertible. The
Fowler plap provided that The coun,
try should be divided ;n..y.rstl. mpt!on
districts managed by local tanlds OF
. directors. who were required to put
: init. .ffn;l tha deal sas,Yai II a
bank examination by bankers. There
We're provisions for guarantee fund
and for other things. including the
gradual retirement of our bond Sc
cured currency.
! The outcome, it was believed
would be the establishment of cur
rency system based on gold as re-
l serve which would be required to be
2 held against notes as well as deposits
This appeals to a great many people
t here, and if the Fowler bill could be
: acted upon on it's merits and witt
2 some pruning of unnecessary pro
a visions, it would probably receive
: more support than any other cur
5 lency scheme which has vet beel
suggested.
Rideely Fights Wall Street.
In view of the suspicion which
;. seems to be SO general that centra
\ bank privately owned might becom'
! an engine of monopoly in the hands
q of certain great financial interests,
good deal of attention has been pai
). among financiers to the plan sugges
ed by the controller of the currency
Mr.. William Barret Ridgely. in 1907.
: He proposed that the capital stoc
. of the central banks should be owne
by the national banks In proportion
= their capital, that subscription to tn
stock should be obligatory and tbs
:. it should not be transferable, share
:. owned by banks going into liquidatio
: being cancelled. He proposed tn;
= the national banks should elect tw
: thirds of the directors and the go
ernment one-third, but she Cover
$ ment directors We're 10 have the po,
III er of vote just as the governmel
lg manager OF the Bank OF France no
II has the veto power.
at The controller proposed also TIL
IS after a dividend of about 4 per acel
~ had been earned one-fourth of Il
+ additional profit should so to II
81 shareholders and three-fourths
of the government, Many people he
2 are looking up this plan now, becau
they say that they see the germ
Id . scheme which may prevent the ce
al tral bank from becoming the abs
Of Lutte property of any aggregation
IN capitalists.
It. y = -
he Deception Soon unmasked.
"a It is hard to act a part long; Il