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The Commoner.
FEBRUARY 13, 1903.
THE FOWLER CURRENCY BILL 1
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During the recent campaign republican or
gans and orators persistently denied that there was
any serious intention of passing the Fowler bill.
In spite of the fact that the Fowler bill was re
ported in the first session of the present congress
by the republican majority of tho house commit
tee, republican newspapers and in some instances
republican congressmen who were candidates for
re-election, assured the people that the Fowler
bill was dead beyond all hope of resurrection, and
that democrats who referred to that measure, were
merely employing it as a scarecrow.
Today the Jtf'owler bill is before congress and it
js being pushed, with such vigor that it is impossi
ble for republican leaders to longer deceive the
jjeople It is true that there is a difference be
tweeiTtlie Fowler bill as reported at tho last ses
sion and the Fowler bill that is now being pushed
in tho present session. The change in the de
tails of the measure does not imply any surren
der, on tho part of the money trust. The change
has been made in response to the protest on the
part of republican members that they dare not
enact a law containing all the ill-advised "provi
sions contained in'the old Fowler bill. The money
trust, while not making any surrender as to any
of the so-called "reforms" which they hope to
bring about, have yie.ed to tho protests of the
republican congressmen to the extent that they
are willing to demand at this time tho adoption
of one of tho iniquitous features of the Fowler
bill, holding other features in abeyance.
IThe old Fowler bill authorized the establish
ment of branch banks and provided also for tho
retirement of the greenbacks, together with other
provisions contemplated by the policy adopted by
the so-called Indianapolis monetary conference.
Republican congressmen pointed out to the back
ers of this measure that the time was not yet ripe
for the retirement of tho greenbacks; the people
were somewhat partial to the greenbacks and it
would not-be "good politics" to insist upon their
retirement at this time. With respect to tho
branch bank feature, the smaller bankers
throughout the country made such a vigorous pro
test against this plan that Mr. Fowler and his as
sociates thought it inadvisable to undertake at
this moment to push through a measure providing
for the branch banks. But one of the most im
portant, if not.the most important, features of the
old Fowler bill relates to asset currency, and the
so-called new Fowler bill as it was reported to tho
house by the republican majority of the committee
on banking and currency on January 13, 1903,
provides, for the asse currency.' This bill is
known as House Roll No. 16228. "its title is, "A
bill providing for the issue and circulation of na
tional bank notes." The bill is printed in full
in another column of this issue.
In tho report accompanying tho recommenda
tion of the Fowler bill, the republican committee
,says: "The time has come when every one real
izes that United States government bonds will no
longer furnish a sufficient basis for an adequate
supply of currency, even though. that form of cur
rency were profitable, which it is not Indeed,
-were it not for the policy of force applied by the
secretary of the treasury, the banks would now bo
retiring their circulation, because unprofitable, at
-the rate of ?3,000,w00 per month, the maximum al
lowed by law, and this, too, in the face of a con
stantly increasing demand for more bank notes."
Although a national bank, having invested in
United States bonds may deposit those bonds with
the government and may, by reason of. that de
posit, issue bank notes to the full amount of the
face value of those bonds, that bank will be per
mitted to draw from the government interest on
the bonds thus deposited and at tho same time will
have the use of tho money in tho shape of na
tional bank notes to an amount equal to tho faco
value of those bonds which it may loan to tho peo
ple and obtain interest or in" other ways derive
profits. And yet this form of currency, accord
ing to Mr. Fowler and his associates, is not profit
able. These people aro not satisfied with tho al
ready generous advantages given them under tho
national banking law. They want privileges and
advantages that cannot, in reason, bo defended
and that are without precedent even in tho record
of the greedy demands made by their predeces
sors in tho financial world during the history of
this government. .
In conclusion this republican committee rec
ommending the adoption by tho United States
of the asset currency plan, says: "First, that there
is an exigent demand for some provision to re
lieve the present situation if our unparalleled pros
perity is not itself to prove the source of a com
mercial crisis. Second, that neither silver nor
gold nor United States bonds, much loss any other
kind of bonds, can be a proper source of a safe,
economical, and elastic currency. Third, that in
the six billions of liquidated assets of our na
tional baijks there is an incomparable security
many times over for the credit notes that our
trade demands; and that no currency can bo
truly elastic that does not Gpring into being at
the bidding of business, and as certainly disap
pears when that business is finished."
It is interesting to bo told that there is some
danger under a republican administration that
"unparalleled prosperity" may in itself prove tho
source of commercial crisis. It is interesting to
be told, by the representatives of a party that
claims to represent "sound money" and that in
sisted that the single gold standard would pro
vide tho solution of all our financial problems,
"that neither silver nor gold nor United States
bonds, much less any other kind of bonds, can be
a proper source of a safe, economical, and elastic
currency."
in the opinion. of this committee "no currency
can be truly elastic that does not spring into be
ing at the bidding of business, and" as certainly
disappears when that business is finished." In
other words, although this republican committeo
was not frank enough to admit it, in the opinion
of these financiers, no currency will be satisfac
tory, no financial system will be complete, unless
they are so arranged that tho money trust can,
by the mere pushing of a button, make money
scarce, and therefore dear, or when tho so-called
elasticity shall better suit their purpose, are en
abled to make money plentiful during a period
to bo designated according to their selfish inter
ests. It would.be well if tho American people could
have made a note of, tho statements mado by re
publican orators and republican newspapers dur
ing the presidential campaign of 1896. Then these
republicans inveighed against anything in the
form of "wild-cat money." Then they wanted a
financial system based upon a "solid and substan
tial foundation." They then would be content
with nothing but gold as a proper source of a safe
currency; and yet today they tell us "that neither
silver nor gold nor United States bonds, much
less any other kind of -bonds, can be a proper
source of a safe, economical, and elastic cur
rency." This, then, is "sound money." This is
the "preservation of national honor and interna
tional credit!" This is the "reasonable, intelli
gent financial system based upon the experience of
years;" a system that "makes for the permanent
prosperity of the people;" a system that gives
3
t "high promise to business interests;' and for this
syBtom tho republican party assumes tho rolo of
prophetl
A jParty" in Court.
An Ohio reader of The Commoner sends in a
circular letter Issued by Caleb Powers, ex-secretary
of stato for Kentucky, appealing for funds to as
sist him in his defense. It seems to be a letter
directed to tho postmasters throughout tho coun
try, as it Is typewritten, addressed "To tho Post
master," and then tho name of tho town to which
this letter was sent is added in ink on a dotted
line. Wo have no means of knowing how many
postmasters have been appealed to, but as this la
sent to a postmaster in Ohio it is probable that
the appeal has been quite general.
""" In the letter Mr. Powers speaks as a repre
sentative of tho republican party: Ho sayB that
tho party "should not ask him to make tho fight
alone," and insists tat ho is malting it in
- "tho party's defense" as well as in his own. Ho
wants tho monoy . to help him in "maintaining
the Integrity of our party."
In order to make tho appeal more effective' ho
says "tho effect on tho republican party in tho
stato if I should be driven to surrender this fight
would bo disastrous." It is a pathetic appeal and
all who are anxious to secure the acquittal of tho
republican party through tho acquittal of the
accused should hasten to contribute.
How complacently many of tho republican pa
pers have taken tho assassination of Governor
Goebel. How little interest many of these papers
have felt in tho prosecution of tho guilty party.
If a republican official had been killed by demo
cratic politicians tho country would have rung with
denifnciayons of the assassins and every democrat
would have been accused of belonging to a party
of law-breakers. But it is different when a demo
cratic governor dies at tho hands of republican
partisans. No democrat thinks of accusing re
publicans generally because a few republican poll-,
tlcians resorted to murder, but the republicans
ought to resent tho attempt of one of tho accused
to make It appear that tho republican party is on
trial. - vyyi
" , .;
The People's Rule. " ' .
Hon. George Fred "Williams of Massachusetts
has recently given out a statement to the effect
that ho proposes to begin the organization of clubs
to be known, as "The People's Rule Clubs." Tho
' purpose of Inoso Joining these clubs will bo to
bring the government nearer to tho people and to
make it responsive to their will. Tho three ar
ticles of faith to which the members will "sub
scribe are:
First Direct legislation, or the right of
tho people at the polls to vote laws or veto
legislation.
Second Tho ownership by the people of all
public utilities.
Third To restrict tho power of Judges to
take away the liberty of the citizen without
trial by jury.
He explains that it is not the purpose of th
members of these clubs to form a new political
party, but rather to form an organization among
the members of the various parties to the end that
the members of each party may bring their party,
to the support of these principles.
The clubs will distribute literature, hold meet
ings, etc. Further information can bo secured
from Edwin Stanley McFarland, 209 Washington
street, Boston.
The plan is an excellent one, and does not in
terfere with the- purely partisan clubs. The par
tisan club is intended to associate together men
who worlc through the party to accomplish what
they desire. The club proposed b'y Mr. Williams
will include men of all parties who agree upon th
political principle? upon which the club is built.
The People's Rule Clubs ought to exert a tre
mendous influence in advancing the reforms which
have been espoused by the club.
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