The Detroit times., 1909-01-21
|CREDIT CURRENCY
F0WLER'S PL AN
4 OF FINANCING
NEW JERSEY CONGRESSMAN DE.
LIvERs INTERESTING ADDRESS
BEFORE BOARD OF COMMERCE
ARCHITECT KELsEYs TALK.


idea OF a perfect money system VI '''S
x country and detailed the errors Oh"
Weaknesses OF our present system :
Albert Kelsey, of Philadelphia, arci''
tect. explained the value-lncrease oe
rived from Identification OF cities.
Unlike as were the topics each one
was of great interest. and the largest
attendance that the Board OF Com
merce has had at such a meeting was
Held Interested by the two masters III
< their lines until nearly midnight. MOS.
OF the local bankers had made II
point 70 be present 10 hear the row
Ter speech. and they took part IN
Quizzing him afterward.
Fowler's plan. briefly. is the suosI-
tuition for bond-supported currency
and greenbacks of Il currency .0asea
on the commercial three name paper
held by banks. credit currency. H0
would have the banks Of the country
group together in districts of zones
each 70 be in charge of committee
OF seven bankers. and ore q 'A's'
seven % represent the dis,rie, IN q
central body in Washington By ta''
ting each bank put up per cent Of IS
deposits as a gold fund. he would &c
cumulate a billion of gold in Washing
ton. TO serve as guarantee OF all 'he
bank credit currency OF the country.
This gold could be used for making
loans OF $4,000. 600 a. times 10 differ
emit 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 will
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 NJ
justified by saying that it is PERSONAL
fly that makes a bank.
Weakness of Banking System.
Bank resources had increased from
Ave 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.
ne estimates. $250,000 600 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was Withdrawn from circulation and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 b.
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 il paid
bankers 10 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 lie 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.
"In 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 a reserve
for q large amount OF credit. tend TO
force IL 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 1884 and
declared that the same dangers Cleve-
land faced endanger the country now.
The sub-treasury system, the speak
er declared TO be 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
trollers 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 a great quantity OF
government bonds which would force
the price of bonds down. In detailing
why he expected his plan 20 succeed,
IL adopted, Congressman Fowler said :
81 depend upon cupidity, pure self.
ishness, and ii 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 a
board OF control would have power to
order a bank president or cashier To
step out. No new bank could start
without its o. k"
n. At the close OF his remarks Con.
yressman Fowler was given rousing
send-off and later a Detroit banker
arose and put a motion that the De.
4 troit Board of Commerce ask Presi
dent Taft 60 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 a real
and actual profit in dollars had been
made by foreign cities I'm carrying out
\ beautiful Improvement plans. He also
touched on the work that is beginning
5n various American cities, the awak
\ ening TO the merits OF aesthetics.
Detroit was roundly scored time and
again, but every point was presented
so .convincingly that no one dissented
3 20 the criticism. He began by revert
! ing TO the exceptionally good original
plan Of Detroit which has been aban
doned except with regard TO a small
space In the heart OF the city.
The city has great natural advan-
fages, yet. since YOU acquired Belle
Isle and laid ont the boulevard what
have you done?" inquired Kelsey.
tWhat is there along your river To
attract anyone passing TO land here ?
You do not put forth the beauties OF
your city as magnet 10 attract visit
+ ors: there IL no vestibule 10 the city:
one enters through the back yard"
h lie dwell upon, the advantage u