St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-19
LACY's VIEWS.
The Ex-ComptrolIer Gives Some
Sound Advice.

CHICAGO, July 1S.-Ex-COmptroile
Lacy, president of the Bankers National
bank, of this city. in speaking of the
financial situation, said today:
Aside from recent bank failures in
Kansas City and Denver and their eff
feet upon the regions tributary to those
cities, the country seems to be recover
ing from the recent severe strin-
gency which has prevailed for
the past three months. 1t is
probable that the disturbances
at Denver are the outgrnwth of the re-
cent silver agitation and to consequent
depression in related industries. Want
of confidence. resulting from an unusual
number of failures, has been the chief
cause of the recent disasters which the
public press has been called upon to
record.
ut is we'll to remember, however,
that the number of bank failures allud-
ed to has bOrne a very small proper
ton to the total number of Institutions
doing business in the United States.
Here and there unsOund conditions de-
YeIoped and failure mas resulted, but
this country possess an abundance
of sound assets, and will be found able
to meet all calls made upon them. De-
positOrs in banks who are so unWise as
to make demands upon them for funds
which they do not need simply aggra-
vate the existing conditions and un-
necessarily embarrass the industries
upon which all alike are depend
ent for a livelihood. The epidemic
of distrust has OYerrun nearly the en-
tire country and these later cases are
simply tue last outbreak which pre-
cedes the return OF healthful conditions.
1t is fortunate that the demonstrations
at Kansas City has been delayed until
! the harYests are we'll under way,
as the marketing OF immense
crops Of the Mississippi valley
will speedily replenish the drain upon
! the banks by reason of this senseleSs
scare. and we shall soon see those in the
| interior strengthened by the payment
! OF maturing paper. As these local in
| stItutOnS TeplenlSh their cash it
will overflow into the reserve
| cities, and SO the whole banking sys-
| TEN will be restored to its nor
NAL condition of strength, and be en-
| abled to afford such accommodations to
I " tiiOoO OASdSCO III 1CslllLlelbO
| prises as will again impart healthful
| activity to the Industries Of
/ the entire country. The meeting of
/ congress is near at hand and there
/ seems to be no reasonable DOUBT of the
! speedy repeal of the silver purchasing
| clause of the Sherman act. The i'm
! pOrtatlOn of gold has already set in and
! viii undoubtedly increase as the effect
! OF the already large expectation Of ce-
! reals produces its legitimate results.
! The New York banks have COM
/ meuced retiring clearing house certih-
| Gates, and are abuudantlY able TO meet
| the demands Of legitimate business. and
| the DanIcky condition Of the stock mar
/ ket need not necessarily excite dIStruSt.
! The Chicago banks are steadily gaining
| in deposits and in cash reserve.
/ and this is also true of most
of the reserve cities in the interior.
The recupeTatiVe powers OF the country
are now actively employed, and III all
| probability will, in the near future, re-
store the conditions necessary TO a re-
neWed era of prosperity. What is most
| needed now is the exercise of
courage and sound Judgment upon
the part of every gOud citizen in
! the land, and fOrOearance on the part
of the public press from magnifying the
| Importance of the failures which VIII
! inevitably occur, even though we
! speedily realize our highest eXpecta-
tions in the way of increased confidence
and increased business activity