The sun., 1916-08-27
IS THE GOLD STANDARD IN DANGER?
Mr.. Charles N. Fowler, for Many Years Chairman Of the House Commute,
on Banking and Currency, Discovers Great Peril in the Operation
Of the Federal Reserve Bank aystsn.

these words:
Upon the ahirmativs vote Of ~. TO-,
than Ave OF It's members the Fede,,I B..
serve Board shall have power, from ,,u.
to time. by a general ruling covering
districts alike to permit member banks
!. To carry In the Federal reserve h,,t,
OF their respective districts any portion n,
their reserves now required by section 10
OF this act to be held In their own vaults
:. To count as part Of their laVfl. 70
serve Federal reserve notes OF thc,r ov,
district no, exceeding In the agerss,,s
an amount equal to Ave per cen,um Of th.r
net demand deposits.
That is. the member banks can mako
these debts. these demands for gold. A
part OF their legal reserve; they there.
fore OF necessity become a part of ina
legal tender Of the country.
Think Of this just a moment. This
legislation Is urged in the face OF the
appalling fact that we now have IN
this country 81. 100. O0O. 900 OF mere
paper promises to pay which are now
being used as bank reserves; that IL
there are $3.50. OO0. 900 national bank
notes which are being treated indis.
criminately as reserve by all Of our
State banking institutions, and S34s..
000, 900 Of United States notes or green.
backs, making a total OF 81. 100, 600. 900.
But In addition to this vast amount ~
false reserves there Is $500. 0O0. 900 OF
silver certificates also available for re.
serves. Or a total OF 81 500. 900, 900. not
a single dollar of which ought ever to
he used as a part Of our bank reserves.
Pass the amendment now proposed
by the Federal Reserve Board and then
certainly the caption OF the Federal
reserve act should be rewritten and
the title should be AN act to increase
the United States notes or greenbacks
without limit" For this step 10 the
beginning Of the end.
The trainers OF the act planned and
the Federal Reserve Board IL doing
everything in its power to take all
the reserve from all the banks. leaving
them nothing but Federal reserve
bank notes in their stead. although
during the last twenty-five years al,
the leading bankers Of London and all
the English authorities In banking
economics have been urging persis-
tently. In season and out OF season.
tIdt all DuIlNS SIlpulu carry NJ lPtSr
a 10 per cent. cash reserve in gold In
addition to what they held at the
Bank Of England. For many years
Herr Havenstein. president OF the I'm
perial Bank OF Germany. as a result
~ his narrowing experience N trying
to stem the tide Of Ores ans law. has
been urging identically the same thing
upon all the banks Of Germany. n
this was a wise %precaution In both
Great Britain and Germany. II j. a
hundred fold more important In this
country. considering our individual
independent banking system. com
posed as II is OF about 10000 separate
units.
4 Powerful Politico. Financial Machine.
The trainers Of the Federal reserve
act pretended that they wanted -
take the control of the reserves from
a few hands.
What they actually did was to 'it.
the reserve held by 367 national hanks.
located In nifty cities and acting "a
reserve agents for all other banks. and
place them In twelve hanks located n
twelve cities. Not only that, Int the
reserves n W he'd by the 'wsSro F.i-
eral reserve hanks are controlled 'y
the Federal Reserve Board of seven
members. appointed by the President
for a limited period Of year. and r..
movable by the President AT will with.
out cause Again. the Federal Re-
serve Board of eve members Is ON.
powered 10 remove all the directors
of the twelve reserve banks wi'hop:
cause.
| Summarizing the colossal powers -
the Federal Reserve Board. Profess
Edward Sherwood Meade Of the IN
versity Of Pennsylvania SAYS: The
hold the power OF life and death ovo'
every American business"
Bank Reforms Demanded.
True bank reform demanded a rrr-
fectly coordinated and completely uni
fed system in which every bank
should have become an economic unit
OF one harmonious whole,
The Federal reserve bank act mas
produced Numerically the opposite
result, the relative number outside ne
system is gaining rapidly every dsy
by national banks leaving At Groa'
loss to themselves and fewer Joining
each month.
True bank reform demanded rat
our banking and business interest,"
should be removed from ali po,itiCa'
influence and control as FAR AMI as
completely as possible.
The Federal reserve hank IA we
most pernicious. gigantic and potent!a'
political machine ever constrIctei
through the forms OF law
True bank reform demanded wat We
should have a currency that automs''-
cally adjusted Itself to the ever vary.
out season in and season out, wear r.
and year out, precisely as II dos g.
Canada. Instead. we have had DIR
the Federal reserve act a Cou-' ~
expansion and imitation Of me n--
rency.
vital Issues Of the Campaign.
The vital issues OF this Pres d.'' D..
campaign are. in the order ~ '"".'
relative Importance:
First. American nationality " e Al
that these words imply.
Secondly, the preservation - 'N'
gold standard. which has been ,.'a U'i
and Is imperilled through tho cont,r1'
ance OF the Federal reserv" hark st.
Thirdly, protective tariff 'H' ."'
upon reason and Justice, Wv on
through mutual dependence "" s''l
become absolutely independent
L'p,,rtk1u Tho ,,pbIiilllnk a ~ az