| Show CHAIRMAN fOWLER i i VERY PESSIMISTIC t I t If Ii Government Continues Present Policy Will WI be Great Oret Oreti i Crisis 0 i i I i I I f 8 DANGER OF INFLATION i 1 I tnt kp ke is All sit U flack IM I WIll mu nun mi oil lop I nu f w Dee e L t tI I or Cf If the tP house hoU no on I and aM currency made th following today t the outlook for f fI I tal legislation PIp In the Sixth in r Then Th t should IM bo coin In ni m nie mI n nM I e M M rand I r r ran an 1 r Qa M that the mend Ts rs of rat e Ilk to banking and u l 1 r to that nd Id Whit hll r v be b able We to no nun I cM gnawer answer au But that there 1 In la W Brut held tor help no man mall iut dh deny At t the dinner of ot th Ih American W r rk rf rr sam elation at Bt St LOU n R yu year yua I t a i 1 predicted that the th thing h Mi had III happened mutt must happen unless some om omI I te action was nas t k ri that th n r not a banker r In th the t it s wib ws w would wold not ie J it It If x was wN W not done don donAt At the dose close of th the lat last of Con Uon ConI fr M I std said 14 that u tarn lIa of ot out our UI Maa and tad a 11 nuch NUeh Hu h that It elM et f lead Iad to 10 the truc t at our OUI prosperity PREDICTION Again I now dd clare that If this thin gu IU Mont continue its Ita present pr 11 t I of Hf Injection 1 Into the arteries rt or o trade and commerce mere a geed fixed bond curr u ren n nt ry t toy exchanging security by b laud H II I peculation don by treasury J ay y executive order or by h any an other r form of et we shall ahall continue to tomay oJ more may but tait worth accelerated t peed toward a II rom com with which the panic IK is I Ia a s pleasant summer I outing Our IIO this tall fell has a beer beni one ne of at real realty res I ty Our crops clop me ire worth about aboul If th the products of ot our mine abott our manufactured Products about o total of ot we Wf have hae had the tap Nee of ot an n extraordinary et L consumption of f and anil aro are enjoying p high prices If all an this were wt tat not true but on the other hand nur our conditions had been lIn bad lad our nur NI poor and tt prices Irl low lor whet h hlll t would mild have ha 1 transpired VI MALAD MALA HN n I all U this and wholly ly I u of tit f the of ot mr II we w ate are h in III n II stele tle of pi a Ir Irv V hav lm It i today day In the III banks of tit this country ar or unit and un 1 boul t th lilt 11 amount of out outstanding standing lon Inns lo this thin sum num the hanks haaka hold h W ar It r t M er n m algal alwi I r or less Ieee I than X A per pei pt cent nt 1st In n l ivi ern n of nt this 8 E 1 r tent i n 11 n H omU r i 1 Is hank han k a mere me era cre credit dit a mere I p anI 10 u ajr ay It II Ii b molt nett coy oy 0 the re reserves 1 reserves serves 1 belli n II inet nl j Vi nonO ii of our bank I MII today ar aI bank notes note and ami not lIot gold told which It l the only nl proper rese rIn In on country Kith a gold pl t ard WILDEST INFLATION Yet Yel If we tie f continue our noll nell where whey Is I 1 It going to t end nd Not XI tone long wll wit It be before all sll of our hank bank de tie deposits posits podia will rest real upon TI credit reserves reC V This Thu Ir ft I the worst wont ort and wildest wild wildest est I form of ot Inflation Yet t It Is I rumored that sheer heer he Is III to 10 follow follo that thata a Is I now being wrought out nul t to tn lot t to this already overwhelming burden bur burden den another load lead in III the th form lonn of ot state municipal end and railroad bonds bond IN nd an sea th tit the basin nf at our nul book currency Including bank notes note should b hi gold goll Yf cc 1111 It may m y seta n at the th annual meeting of ot the Ih American Amerlean An Hanker association a agar a year r ago A r 1 wee wa Introduced declaring the thea Ih Iha a national hank note not being secured h II J bonds n sea a II Jn J t a at as good s a t ax as a a II k and d the Ih green back beek I Is a rex Bill Bui this i is begging the t hI question Ion herin t UK greenback Itself Is I only tol In ran as III 5 reserve rv the th stands 1 roady road at t all aU times lima to 10 redeem 1 It Ii In III gold The ne for tot th tI national oat hank link note hOW on 11 the other hand l I Is a per nt nl bond payable 3 year ears senor n hen no which as a an n Invest mem uI ha h beset d dupon upon Its rate gate of interest would sell ell for shout about W Q cents ants on the th dollar Its It present pre nt t Is la due to il d man 1 for tor It as security for the th hank note not Issue THE LAST LA T To suggest a as a reined for tor our nut financial trouble that we W add dd to In the Ih already existing elating burden of nt about bout 0 of bank Is l Iu ue end and unlimited amounts of ot bank note notis based blU 1 upon Mate tats municipal or railroad bonds will pima the last 1111 straw stran raw It will still further tons fone fon gold out nut of or f our ouri i u serve erve and nut t of ot the th country The Th Ne New York Tork IU its bonds are e of ro the thO hi heat character harI r and sod would woul ne tic be bt b Included A Yat tI i of three tho it should hould be said that th 1 pel I ent ome yearn ago sold foi t between bpI till and lId d lit III while tod they are aloe at rellIn ii ti iii and d New ew Tork It In I It difficult to host float the Ih h loan at t a y per If percent r cent rent Title This TIt sort I of Inflation most ant l to be e stopped Bank flank liabilities whether to In depositors or pr mu most t H based baited upon gold nut no upon lIl flu r credits t Expansion if tt i I i Ing the s of nt t n 1 b 11 n k without wit I a t of or eSh h reserve rf and this may ma take although th the eMllia be bIO In gold old cum coin It In Is n 1 question of ot the th relation nf of the Ih liability to the reserve and a not tho thu lit form of Ot hat CREDIT UPON CREDIT Inflation on the other oUter hand l II k bas bae basing ing In one on credit upon another It Is Ii I wholly Immaterial what the th basic credit Is ta whether a bond state elate bond municipal or a railroad bond bondA A check elMot che k due dOM not net lead lad to eq nor Mei Inflation for the tha reason that by b y the very VIOl nature naturA of f the Instrument ment It ts u s sett nt home for tor at once on No bank holds holda a cashiers check whether of the weakest or th tM the strongest tn lt beak bank as II a part of Us re reserves Service serves but wt tends sand It to the banker us tUI directly anti and swiftly I an as possible for re rc redemption r d NI A bank Issue consisting of ot ca caI cheeks checks payable to bearer b reI will kep keel the currency of ot the country down to the lowest point of ofIl Il and yet fOt will always meet the thela largest la t demands dall of trade and nd corn com commerce omna merce meroe The Th na entire banking resources of tho world about boo I Of or this 00 is u employed In III I foreign countries and In Inthe Inthe inthe the United States Of the tho M employed abroad broad about 1 IS per cent consists consist conn of ot credit cn bank notes note not or cash cashiers un I checks le or current credits While with our enormous banking resource etl which exceed of or the tho th entire banking resources resource of the world we have not a IL single Inzle dollar of such current N lu except the clearing clearinghouse house houa certificates ami checks now In circulation |
