Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-11-28

would
the period of the following the overwhcm
ing defeat democracy 1905 that William Jennings Bryan
would be placed in position by the American people to
have large voice in connection with the modification of our
monetary system
take the lead in crusade for the revision of
laws though such may cost him his prospective
place in the cabinet of President Wilson stated good
authority that the Neraskan leader making active effort
the adoption OF radical views currency and banking
Bryan chief idea the placing of note issues entirely in
the hands of the lie wishes to have the
backs constitute the sole of the country In the
follows:
Existing national banks be allowed retain their
note issues based bonds if they desired
"a central association central bank to be
,condions arranged as to make it worth while
for the banks TO retire their bond secured notes and was
reced that they would do When bank cancelled IT'S notes
its power to issue corrcsponingIy and permanently
duccd Thus the notes would b" gradually transferred to the
central institution
The effect of this arrangement would have ultimately been
to place the whole Of issue fHy in the hands OF the
central ORGANIZATIONS whatever was and therefore, to deprive
the several banks of all privileges in that connection
Mr. Bryans idea as to note currency apparently assumes
prerequisite retirement bank protected by
government bondsa system often complained of by radical
critics because of the alleged double profit allows the banks
With the bonds put out of the way as they presumably will
be in banking AMI currency scheme the would
be to provide for note issue founded government rr'd
IN the pure form rather than upon government cedl1 en-
bodied in bonds and to make the banks for the of IT,
instead of paying them interest bonds and allowing them
strumen whose goodness assured by the
in Wall Street that should Mr. yan~ proposal gain
considerable degree of advancement the result would be das
trous and might bring condition bordering upon panic
But Mr. Bryan is be alone in attempting revise the
currency legislation during the coming session of Congress.
interest in Vermont marble development and who for six years
chairman of the House banking and currency committee,
n"s @Ter a0' With "a re ere w M @ Fowler sa
Il regard the financial and banking question by far the
question before the American people and important
than all the others combined Do know that the banking
of the United States almost oneaf of the
4h em an% s our oa 'S anhn~ s M
Mr. Fowler shows iii the first place that our individual banks
most efficiently must perform four functions first the com
mercial business second the savings business third the trust
business. and fourth the note issuing business
lie emphasizes in the second place the point that the Amcr
clearing house has developed central organization for
IN fact itself kind OF central institution in which all the
banks which members of it, combined into single unit
The clearing house has its four distinct ncons-fr its
organization represented by the which
second has bank examiner to investigate all It's members
third has its centralized which contributed by its
members the amount now being centralized at all the various
clearing houses being estimated upwards of $20o00OOO
fourth whenever necessary these clearing houses
credit currency in the form of clearing certificates Now
all of these things done without authority of law
recognition of law.
CONGRESSMAN Fowler insists that the whole country should
be organized in precisely the but in thirty forty
great commercial and then that these commercial
should be combined and bound together precisely the in
dvila banks bound together under the clearing
but for the larger protection of all the banks of the whole
by cooperative gold fund amounting least $500
100000 fund twice large other gold fund in the
Worl and sufficient individual bank,
that il independence also every
cia zone in the United States and make each such financial
ter absolutely Independent of every other center
This vast gold could be used not only
the commercial interests of the United States but
of gold AMI from the nitod could
then protect ourselves against the drafts gold
otherwise he made under adverse conditions precisely
the Bank of England protects and
Congressman Fowler also points the of
national and credit bank under supervision coop
erative in character with pap capital Of
will enable the farmers of this obtain loans their
farms as cheapy as any railroad or any of great
tons obtain their capital certainly exceed five
cent.
One discuss the financial quote
like those without becoming impressed and by
tremendous growth and almost ineXhausbc the
American people,
We have utterly outgrown the financial methods of the last
century, and if banks had been obliged
assistance instead of something like the
house wholly from law the country long would
been swamped for lack of monetary facilities.
The time has manifestly, however
the country financial future demands that
be placed upon basis keeping resources
and operations of American business and finance.
the