The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-10-19
Lesson Of the Recent Financial Panic
Made Plain and Future Dangers to
the Country Pointed Out.
PLEA FOR LESS PREJUDICE
Bankers Not More Selfish than
Other Men i'm Business.
POpulists and Radical Silverites Scored
at the Worlds Fair by Secretary
of Agriculture Morton.

morning. Mayor Harrison delivered the
welcoming address. Then President Will
liam II. r. Hawn, of the American Bank
ers' Association, made a speech. The time
Of the congress was taken up for short
time by roll call and reports of Of
ficers. When these routine matters had
been disposed OF Hon. James II. Eckels,
Controller of the Currency, appeared to
make the principal address of the morn
ing. The hall was crowded, but all
those who were present listened with in
tense interest to Mr.. Eckels's words He
said:
Doubts have arisen in my own mind
as to the propriety OF one who Is not
fore this aSseInblage of experienced men
questions bearing upon the conduct and
operation of banks. And yet, because OF
the official position which happens to be
mine, it is not inappropriate that L should
be here If for no other reason than to form
your personal acquaintance. Nor is it inn
possible but that from the vantage ground
of having, under the law, the supervision
of a system of banking which embraces
within its folds almost four thousand ma
tional banks, capitalized TO the extent of
hundreds of millions of dollars, and having
within their keeping more than three bill
lions of the peoples money, l might utter
something gathered from experience
which, If brief in space of time, has az
least been big with events in the history
of American banking.
"It is no exaggeration of statement to
say that the happenings of the months
counted the most remarkable in every phase
OF financial bearing ever experienced by
the American people. Heretofore in our
financial diStresSeS the test of solvency
has always been applied to store and fac
tory, to great industrial enterprises and
railway corporations, but within the period
or these months an affrighted people, fear
full of the resultant effects of a financial
system, vitiated by ill-advised and ill-con-
sidered legislation, became for the first
time doubtful of the distinctivey financial
institutions of the Countrywide banks-and
as consequence a steady drain upon de-
posits was begun until within the period
or two months, from May 4 to July u
from national banks alone had been drawn
out more than 1893, 000,0 600, and from State
savings and private ones a sum as great,
not for the purpose of trade or investment
but to lie in wasteful idleneSs, thus render
ing the soundest institutions helpless and
complete currency starvation in the midst
of absolute plenty These months wit
messed the closing of more than $50 nation
al banks and not less than five hundred
state, savings and private ones, many of
which, under ordinary circumstances, would
have been solvent, and under fostering care
ana and improved conditions have reopened
| their doors for business again to enjoy the
confidence of the very ones most doubtful
of them.
To-day, so greatly has the situation
changed, that having in mind the past
Doth in the severity of the strain undergone e
ana the long continuance of it, it would
unfair and unjust to deny that the bankers
of this country have exhibited masterful
| skill in coping with situation rendered
complex beyond anything heretofore known
by the withdrawal of currency by depos-
| itors. on the one hand, and the pleadings
| for assistance on the part of merchants
and manufacturers, on the other The
course pursued has caused no depositor to
| complain, while the generous treatment of
| mercantile interests In extension of credit
and renewal of paper has prevented q panic
| In other directions, the far-reachng effect
| Of which cannot be estimated.
But, while boasting of this new evil
| dence of the ability Of our people to with
| stand the severest of financial ailment, it
VIII not do TO count too much upon the
| progress made towards recovery and the
recuperative powers shown. Complete re-
| turn to financial health cannot be had so
| long as the first great cause which COW
| cred all the land with doubt and uncertain
| ty, and filled the peoples minds with fear
| as to the stability of our financial institu-
tons, yet remains to plague the lines of
business, create ate distru st at home and
| tiles, and bring to naught the efforts of
| those who; i'm the midst of present disas
| full faith in the coming Of better times
| Until our financial laws accord with those
| that govern the worlds trade our currency
| takes on a uniformity and elasticity that
! now are wholly lacking, and our people are
| rid of the pernicious doctrine that money
which is cheap and plenty is blessing
1 and a source of wealth instead of a curse
| and the cause of financial panic and ulti-
| mate poverty, we cannot but expect at
| stated periods a recurrence of conditions
such as have and still do threaten us.
UNJUST TO BANKERS.
"But it is said in bringing about differ
| ent and another set of financial laws the
banking interests must hold aloof. 1t is a
| striking illustration of the extent to which
unreasoning passion and prejudice have
| crept into our politics that in the present
1 wi tha fry
| bankers are compelled to hesitate as to the
| advisability, from the standpoint Of pru-
| dence, of actively urging the repeal of a
| measure which stands confeSsedly as the
| source in the largest degree of past disas-
| ters and a dire menace to future prosper
| ity. Surely the banking interests of the
| country are vast enough and of sufficient
| import to warrant a respectful hearing and
| careful consideration, without arouSing
| either the passions or prejudices of any
| be that bankers are selfish, but not more
| so, L venture, than men in other walks OF
| life. Surely not more so than the silver in
terests. which to-day inveigh the most loud
| ly against them and with an inconsistency
| so marked that he who runs may read
| are with selfish Indifference to the public
| good, not only blocking the wheels Of leg
| islation at Washinton, but, unmindful of the
| voice of the people and the press. are max
ing the fundamental principle of our gov
| troll, "a kissing and by-word.' that their
| own selfish purpose may find fruition In
| legislative enactment that Will compel the
| government to be the special patron OF
| their special product.
"These critics. who would debar the
| banker because of the business in which
| he is engaged, from being heard wheI
| grave questions of financial policy engage
| the law making powers, seem to forget
| that bank stocks are not all held in cities
| by capitalists and merchant princes, bu
| that every town and village boasts of its
| of moderate means, by merchants, farmer:
| and mechanics. They forget that the d.
| posits placed in the custody of the bankers
| OF the country are of the many and not the
| few, who entrust to them their earning!
| and expect OF them watchfulness that NJ
| financial disaster through legislation Of
| otherwise, shall ensue. And, because o
this. they would be dereict in the discharg
OF a duty which they owe TO a clientag,
| large number. more widely scattered
embracing more classes and conditions o
people, and possessed of greater aggregate
wealth, than any special interest within ou
borders, IL they did not at such time a
insist that the rights Of those whose in
| trests have been placed with them wer
| protected from the wasting influence o
| harmful laws.
| Therefore, when these dangers to tn
| public good are upon US, let no banker hes
| itate to discharge his trust because of tn
| utterance of some demagogue striving I,
On abiding faith in the fairness of tn
American people, let him give utteranc
| 10 his views through speech. petitions o
| the columns of the press upon every finan
| cial proposition that is under considera
| ton discussing 1T not from the stand
| point of the shop, If L may be perrnitte
| 10 use such a phrase but upon the broade
4 de Of rlblic nd