Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-07-19
CAUSED BY BAD BANKING,
Controller Eckels' Reasons for the Failures
In the West.

| Controller Eckels' Reasons for the Failures
In the West.
Controller Of the Currency Eckeis was guess
Of his predecessor, ex-Controller A. B. Hep
burn, at dinner at the Union League Club in
New York last evening. The affair was stated
by the distinguished diners to be Q purely
| social affair, given az a compliment to the new
controller, and for the purpose Of enabling him
to meet the New York bankers.
The gathering Of SO many leading 6nancisri
OF the country at this particular time, and the
presence In New York OF the controller Of the
currency, attracted much attention, and the
meeting between Mr.. Eckels and the bankers
was regarded more ~ . conference on the mon
etary situation and the prospective measures
for its relief than for purely social gathering.
President George G. Williams Of the Chem.
ical National Bank, and president Of the Clear
Ing House Association, presided. Besides the
gsntlemen named there were present Charles
N. Preston, superintendent Of New York state
banks and the presidents Of number of ma
tional banks.
Mr.. Williams made short speech. intro
ducing Mr.. Eckels, who spoke as follows:
THE condition which confronts the American
people 10 one that deserves the thoughtful alton.
ton OF every citizen who has at heart the
interests Of the country. Nothing is to be
gained by taking on fright that is unwarranted
by either the immediate past or the immediate
future. What the people ought to do in the
midst OF the failures that have occurred il moi
to give way to uncalled- for alarm, but 10 study
the character OF the institutions which have
failed, the causes which have produced them.
and the Localities in which they have occurred
After such study. let them view the solvent
institutions everywhere about them, aud the
conclusion that must irresistibly follow is thai
the legitimate life OF the country is no,
threatened, but, instead, will come out of the
mr. n VNsl xka o<~o g.
through 1t. In conservative business centers
the failures have been few, either in banking O,
other liner.
"Bad banking at any and all times IL dan.
gerous and must inevitably bring disaster upon
those who engage in it. The prbent stringency
because they were inherently weak, Others
have closed a. resultant effect Of having KEEP,
alive the operations Of spectators in the ex-
treme west and in portions Of the south The
art has not ~ yet been discovered Of making
something out Of nothing, and the financier
who stakes his all upon an unbuilt city reaching
out into the waste places of the earth must
bring about the ruin Of his own and kindred
institutions which have trusted in him and
pinned their faith to assets yet unborn.
Disasters have fallen upon the speculative
institutions In boom cities of the states Of
Washington, California, Colorado, Kansas and
Missouri, which have in turn injured solyen,
ones, but the states Of New England and the
east and the middle states, aud those of the
northwest, not less than those Of the south
have thus far escaped, and will, because the
foundations upon which they are builded is Of
rock, and not Of sand.
"The people are hoping and asking much
from the banks OF the country. In turn the
banks have the right of considerable treatment
from the people. Let those who have 30 long
transacted business with the banking institution
have sufficient confidence in them to know and
feel that II in years past they have proved
safe they are likely 80 to do in the present
emergency. Runs upon banks but destroy the
interest which otherwise would be protected
and those who indulge in them cause to come
about the thing which they say they wish to
avert"
Mr. Eckels' remarks were received with ap-
plause.