Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-11-15
By TELEGRAPH.
eses nnEs COMING.


~ - - = utoA1s9 - Nas11a
Finaseiai Skiassaey-
BOSTON, Nov ~ - Thar the leading
/ 9naaciers Of Boston might hass . closer
personal relationship with Comptroller Of
The curreacy Ecksis and clearer under
tAndiug OF his theories in relation TO the
present businers depression, tbs Bank
Presidents association invited this high
sfaciai Of the national treasury TO be .
guest at its monthly meeting and banquss
II the Parker House yesterday afternoon
Previous to entering The banquet hail .
short informal reception was held In the
pariosx, la o,dsr shss the grsY h4irrd p<rsi-
tents nigh, have an opportunity d being
presented 10 Mr.. Eekeis. and as he moved
aeoat among the aastere and weli-sea-
soned aimoners Of the east bis youthful
appearance was In strange contrast to
them
He re. we'd . cordial reception at the
dinner, which was served se 3 O'Clock, and
made speech. Phineas Pierce. presld ent
OF the Continental bank, presided, and.
after dinner had been disposed OF. intro
dueed Mr. Eekeis as the gust and speaker
81 the afternoon. Mr. Eckeis said:
The commanding position which the
banks of -ais couatry occupy In our tinsn-
eial world cannot b. denied. nor the i'm
portanee OF our bsnking institutions over
| estimated. Established upon a safe basis
aud honestly Conducted upon conservative
liues. they are the greatest Of all agencies
for the promotion Of a peoples prosperity.
but stripped OF safeguards or dishonesty
smansged. the iaiury which they bring
upon people is only limited by the ex-
teat OF their opportunities.
How Banks May He Injured.
The supreme fuoction which they ill Is
the distribution OF the peoples wealth, 50
| as u make IL never-euding source Of
benefit 10 all.
Take from them, without cause, sup
port, and inevitably the injury falls upon
al. Demand If them in a moment Of
fright the money given in their keeping
that it may find lodsment 10 hiding
places. and Of necessity the banks must
withdraw this life blood from the arteries
Of trade. and ths shop and store and fac
tory must close and labor 90 unemployed.
Between Mag 4 and October Of this year
the withdrawals 10 indi yidual deposits In
rational banks alone We're 500, Oh, 600 and
Of banks AID bsnkers' deposits to the
amount of $4,000, COO, a total of $SIs,-
000,0D0
TO meet this drain the banks were COM
PEELED to call ia loans, thus depicting the
resources Of active trade to the extent Of
SIS. 0o0. go, aud frem Asnks and bankers
10 the amount Of s5i, GvUog. whils to their
borrowings was added $4,000, 900.
bankers Didn't Do 1t.
In the light of these figures, apart frora
the statistics Of like nature which could
be added from state, savings aud private
banks, who eau doubt but that the shrink
age in deposits on the en-. hand, contribut
ing only to the fund Of boarded money
and the calling in On the other of loans
necessitated by the demands Of depositors,
Withdrawing such vast sums from the &C
tiviIies of business, contributed more than
all else 10 the stagnation from which we
have suffered,
The most serious feature OF the whole
matter was the Withdrawals OF small
amounts by depositors who were not Dor
rowers, and whose accounts, as is well
known to all bankers. are most valuable
in the banking business, and constitute a
| most stable and important addition to the
| fixed capital of commercial banks aud is
he fund whicn is used to meet the current
demands of the business of zach commu-
nifty.
This fact alone is sufficient to refuta the
charge that the financial strngency was
The result of a bankers panic, were 1t pos
sible to believe that body Of intelligent,
-hrewd and prudent business meu could
| be capable of sitting in motion the ma
chnery which would accomplish their
| own distress and ruin.
| thrust and believe that this condition
| of affairs will soon give way to better
aud different order of things, and in
dustries now dea Tened through the action
OF an sffrighted people quickeuei into life
Repeat Restored Confidence.
Happily at last the financial measure
| which threw so much of doubt upon onr
monetary system, destro yed the conf
dence of the people in our banks and
| paraly zed the actv tiles of business no
longer remains upon the statute book
| to ulague IL. It's oper ion worked harm
to us abroad; it wrought disaster at
home
It, repeal leaves us at last free to enter
upon financial legislation that will accord
| with those principles of sound economics
watch through all the past centuries have,
| monetary operations With such legista-
tivn aiding instead Of retarding the I'M
| written laws of commerce and trade the
| wealth of the American people must. in
the very order Of things. become as vast as
their energies are uubounded.
In conclusion, permit me to say that the
advocates Of sound money must hot rest
content with the vantage ground which
> bat Iat .It
| a money cheap and plenty is yet abroad in
the land and will continue So long as
there is hope of terms Of compromise or
yielding to his demands
am not unmindful Of the fact that
sbeap money doctrines have time and time
again taken bold upon our people, but
This seeming popularity is neither indca-
tive OF their real strength nor of Their
soundness as financial principles. No err
rors are so spontaneously popular with
the mass OF the people as financial ones.
sni none are 80 easily dispeled il aggres
sively tackled