Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-05-11


believe that a good lawyer. even without
banking experience, with a thorough knowl-
edge OF banking as well as other laws, who has
had successful career. must possess the ele-
ments OF fidelity and sound Judgment that
qualify him to perform in an effective and sat
lsfactory manner the duties Of controller of the
currency. We have little apprehension that
you Will hnd 1t necessary to consult the bank
ers OF this or any other city, but wish sim
cerely to assure You that should you ever think
proper 1t will afford bankers great pleasure to
promptly respond to and sustain you at all
times. Even in the short time since your in
stallation in Office we have read with gratifca-
tlon your public utterances to the effect that
the public service will be benefited in the
largest degree and the affairs Of your bureau
best conducted by retaining officers whose
ability, integrity and fidelity have been
well established. and that the examination of
banks shall. under your administration and su-
pervision, be made more effective if possible
than ever before, and that the number of bank
examiners and examinations shall be increased
and be more frequent. These expressions in
dictate determination that examinations of
banks shall be made thorough and intelligent.
1t could properly be suggested that bank exam
liners should not be borrowers, even with col
laterals, which are likely to be questionable nor
charged with overdrafts with banks that are To-
Gated In their respective districts, also atten-
ton to excessive loans to individuals, officers
and directors directly or indirectly, by careful
examinations, promptly reported, corrected and
stopped.
You will find, Mr.. Controller. that the rule is
very general, with comparatively rare excep-
lions, that bank officers and directors are anx-
ious to know Of and are willing to carry out
thoroughly and conscientiously the banking
laws enacted by Congress and the rules and
decisions made by your department Indeed
II We but reflect a moment and contemplate the
character of the officers and managers Of the
national banks of this country, the great trust
that is reposed in them and the fidelity and
accuracy with which they carry out their trusts
and continually render favorable account Of
their stewardship, the truth of this statement
will be apparent.
feel sure it will be gratifying to you and
will prove a pleasant experience to be at the
head Of a department of the government in
which you are brought into intercourse with a
class of men of SO high an order of ability and
character that have to deal with such vast and
important interests and that closely con-
nected with the welfare of the people.
THE NATIONAL BANKING SYSTEM.
At the end Of the first ten years, 1873. after
the organization of the national banking sys-
tenn, there were 1876 banks in operation; in
1888, ten years later, there were 2,529 banks,
and in 1898, nearly ten years later, there were
3,773.
To show the tremendous amount of business
transacted and excellent exhibit made by ma
tional banks. let me quote briefly some figures
from their last report of 1892: The total cap
ital of these banks amounted to $3.50, 573 900;
the surplus and undivided profits, S340 524, 179;
total deposits. including dividends unpaid,
amounted to Si,76S. 81 ,S49. &C. Under the
banking law depositors have security in double
the amount of capital stock for which the stock
holders are liable. This would make S1.373,-
146 600 In addition to this they also have pro-
lection in the surplus and undivided profit
making total of S1,7l3, go. 900. The loans
dlScDnnta n business
the country amount TO S2.171, 041 .0SS, and the
aggregate liabilities and resources amount to
80, $40. O94 .s97. A.
The average annual losses to creditors of
national banks by all failures in nearly thirty
years have been but one-twentieth of l per
cent. We find that in one year 1S92) drafts
drawn by reserve cities amounted to S5,042,-
276. By other banks. 1882. $50. making a
total amount of S12 994, 953. To show that, as
a result of the laws and regulations governing
the national banking system. the earnings have
been reliable and extremely reasonable; the
average ratio of dividends to capital and sur
plus has been, for six months ending Septem-
Der. 1892 81, and the ratios Of earnings to cap
ital and surplus have been 3.5.
Thus could continue to quote and it
all would only go to show the great magnitude
and benefits to the country Of the national
banking system, unquestionably the purest,
the safest and the most suitable for the people
OF any banking systems every established in
America.
The bankers here pay you this compliment
and appreciate. they do, the high and hon
orable position which you now occupy and the
responsible duties that devolve upon YOU. You
will have here and throughout the country the
best wishes and sincere support in your efforts
to administer the affairs OF your bureau ac-
cording to the national currency act and the
best rules Of banking. The bankers Of Wash
ington will be glad to know you better per-
sonalv and earnestly wish that your resi-
dence in Washington will prove agreeable, at
tractive and profitable in many WAYS, so much
80 that your stay will be one Of long duration.
When Mr.. Edison finished, Mr.. Eckels was
introduced, and his speech was loudly ap-
plauded.
CONTROLLER ECKELs' SPEECH.
Mr.. Eckels said: Gentlemen: trust that the
hosts Of the evening will feel, without my Civ
ing expression to formal thanks that 1 am
deeply grateful for the opportunity thus
afforded me of meeting, under such gracious
circumstances, the representatives Of the finan-
cal institutions of this and sister cities. What
ever feeling of being stranger in the midst of
strangers was mine upon coming here has been
lost in the cordialty of the greeting given to me
and in the warm assurance OF an interest in my
success as public servant. IL / am to judge
from this evidence of friendship may well be-
lieve that here, at least, those most to be
affected by the acts of the controller have no
fear of sudden destruction coming upon them.
nor are they disturbed over the idea Of the
doing of some indiscreet and ill-considered act
on his part tnat will lead to unutterable con-
fusion and possible disaster.
The banking system which you represent is
too great and the interests which it involves
too far-reaching in their Importance to be
either lightly dealt with or hastily acted upon.
1t may be changed in the future under the
pressure of new necessities. but such change
will only be wrought after a consideration COM
mensurate with the magnitude of the subject
and for the betterment of the system. 1t will
not come a result of political changes nor
for the furtherance of political desires. When
the best Judgment of the American people,
viewing the question in the strong light of
business proposition, is that the national bank
ing system it stands no longer serves
the purpose for which it created, but that
another. with all the safeguards of the present
and none of its defects. would better meet the
needs of the people. then, and not till then, will
1t give way to something other and different.
Its strength and it's existence must always
rest in the confidence which the people have in
il as best securing to them the fulfilling of their
wants and the absolute safety of its obligations.
1t will survive Just as long it meets more
completely than any other system the varied
wants of all sections of our country. but when
the point is reached in the nations commerce
and trade that it falls short in this regard it, in
the very order of things, cannot and will not
survive. 1t ought not to tremble at the pros
pect of competition with other and different
forms of banking. for if it be demonstrated