Show J CREDIT CURRENCY SYSTEM ADVISED BY A CONGRESSMAN NEW YORK Nov 4 That That permanent relief from the present monetary stringency stringency gency Genc can Cn only bo be had through a system system system tem of credit currency adequate to meet tho the requirements of ot trade de and redeemable in gold coin was the opinion expressed I today b by Representative Charles Fowler of New Jer Jersey e chairman of ot th the banking and currency committee committee- which will at atthe atthe atthe the coming session cession of ot congress endeavor or to have a n. law passed providing pro for tor credit currency Is Issued b by the national banks I Until such permanent relief Is made pose pos- pos i e sible b by legislative enactment Mr l Fowler asserted tho the situation must be met py by r the issuance of or clearing house houlle certificates certificates cates cashiers cashiers' checks and due bills blUs of business houses and md manufactures manufacturers The underlying business conditions he said to the Associated Press toda today j I are essentially sound as evidenced e b by bythe bytho the tho Increased earnings of ot railroads and the fact that the tho value of our agricultural agricultural agricultural tural products this year car are ore more than last year which was the highest year ear In our history and are aie bringing to our people about seven billion billion bil bU- bil- bil lion Hon dollars dolla but public confidence has alS been greatly shaken and credit seriously affected therefore every cry patriotic citizen clUzen from tho the president down should do all In his po power er to restore that confidence which Is essential to national prosperity The cause of the currency stringency Is that there is scattered broadcast throughout tho country countr at ut the mints In inthe tho the wheat corn and cotton coHon fields In the pockets of ot the people or locked up about of ot the reserve money of the united States most moat of or which under a proper condition would be bo in the banks serving as reserve resene Temporary relief will willbe willbe be through the nhe forced use of ot current credit cred cred- it In tho the form of clearing house certificates certificates cates cashiers cashiers' checks and the tho bills of business houses and manufacturers dur dyr- during ing lag the ninety days das The permanent euro cure must come through a 0 6 system tem of credit curren currency C expanding an and contracting with Ith the tho or ordinary demands of the smaller I trade precisely as cheeky checks and drafts do dc doIn doin in the broader ft field hl of commerce commerce We e have hove proceeded far enough into Inlo the present financial crisis to get a pretty clear perspective e of the real rent situation First the condition is now general reaching Cr C every nook and corner of the cO country Second d If the tho gold boll certificates the tho United States notes and sIl silver er certificates or tho the reserve money which the banks of the country countr have sent In agricultural districts districts districts dis dis- of all sections to settle up the years year's business I say If It these reserves now scattered broadcast over the tho land landwere wore were In the tho banks whore here they properly belong belonS' there would have been no money panic this fall tall Tho The proof of ot this assertion Is con con- During tho the past four months there has been sent from the tho banks Into the tho country districts approximately of ot currency Of Ot this amount approximately was reserve mone money wh which ch If It ft were now In the banks would serve an ns a basis of ot moro more than credits or loans loana and the present crisis would have havo been averted a This result could dould havo have been accomplished accomplished pUshed without Increasing our bank re reserves reserves re- re serves to the extent extent of ot a single dollar without Increasing the Uto liabilities of ot the banks of the country to the of ot one centI cent cant I r challenge any man to controvert this statement and submit the following as absolutely conclusive proof of the thc assertion asser assor- tion If It the banks In which tho the had been deposited had been authorized authorized author author- as they should havo have been to create bank note noto credits as well wen as L bank book credits and the they had proceeded to convert convert convert con con- vert this 5 of ot bank book credits i Into bank note credits the banks bonks would not have been affected In on any degree or orIn orIn I In nn any way whatever nn and the whole country would have ha been amply supplied with th currency with which to transact aUtho all aU tho the fall faU business How could this have havo boon been done doneZ Simply by authorizing each bank to Issue cashiers cashiers' checks payable to bearer which Is a a. current credit that is credit that passes b by mere delivery no endorsement en on- B By this process procesa the of ot bank book credits would havo have been converted Into bank note credits and as the reserves required for both forms forma of ot credits should bo ho the same name there could have been no change chango whatever In tho the situation sit sit- The bank debt is the tho same samo the tho amount of ot the reserve Is Ie the same It has hos been only a matter of ot bookkeeping An Issue of or credit currency adequate to meet the requirements of trade and currently redeemed In gold coin Is la a principle followed by every civilized d country in the world except ou our own Mark lark this The banking power of the United States in 1890 was about five fi billions billions bil bil- bil lions and now exceeds sixteen billion dollars dollars or or equal to the entire banking power of ot the world in 1890 1590 which Mulhall Mulhall Mul- Mul hall han placed 8 at t Today the banking power of ot the entire world outside out out- side of ot tho the United States la is only 21 and of this amount 20 O per percent percent cent or r more ore than is pin In cashiers' cashiers checks or current credits that credits that thatIs Is credit currency and currency and yet ct while the United States Stales has three sevenths e of ot the banking power of the tho entire world It has not one single Bingle dollar of current bank credit although the tho sevenths four-sevenths of tho the worlds world's banking power has hll has th the na advantage e of four billion dollars dollars' current credits of credit currency On tho the same basis wo we o are ire entitled to have currency credit or credit currency If It this principle were broadly adopted in this country as os It should be our bank reserves might be Increased from froman troman an average n of ot per cent to about 20 per er cent and our banking liabilities remain practically the same Can anyone give e a single reason why we should use usa a ch checkbook for credits to order and not u use uso o a cura nt credit of the same samo bank upon which we drew our checks Is not the cashiers cashier's check Just Justas as good as our check upon tho the same ame bank Indeed Ind d far tar better when better when protected as 36 It should bo be by a guarantee fund deposited with t the e United States government man many times more mor than ample to Insure Its Ita re redemption redemption re- re In gold coin tf If It If the banking Institutions of at tho the country countr could exchange of ot otc c cashiers cashiers' checks for of re reserve reserve rf- rf serve sen mone money no now floating around In the mines mincE wheat corn and cotton fields and this were added to tho the In th the banks on Jul July 1 1 1907 our bank liabilities would be Increased e-d e about 8 per cent while our reserve resen would be increased per cent and Instead of our advantage ad reserve being about 10 J per percent percent r cent It would be 20 O p per r cent and this end alone IK is sufficient nt to justify the adoption of at the principle of or current crE credits in this countr country country- Scotland has a credit currency Issued by the banks that expands and contracts twice a va ya year nr at the tho rate rat of ot 1 22 per capita or The same earns ratio would give ghe the United States about of ot credit currency cur cur- rency but we have not one cent of ot credit currency though w wo we ne need ned d d It moro more than other any country county In the world orld has credit France a a. currency issued b by the Bank Bank- of France which is con con- constantly expanding a and contracting throughout the year at the rate of p per r capita or The same me ratio would give I e th United States of credit currency Canada has a 0 credit currency issued by the th b banks that expands and ad contracts at the rate of 3 p per capita er e every fall faB or S The same name ratio would give the United States of credit currency But we have e none I |