The Providence news. (Providence [R.I.]) 1891-1906, 1893-11-14
For an Improved Condition In The
Financial World.
BANKERS ARE NOT RESPONSIBLE
For tho Recent scare Throughous the
Country Comptroller Eckels Talks
Very Entertainingly to the bankers OF
Hoston-The situation Explained.

men who preside over Boston's treasure
houses gathered at the Parker House yes
terday afternoon to welcome James H.
Eckels 10 the city, at the dinner OF the
Boston Pa,k Pres'd nt' association. The
TO meet Boston bankers, and incidentally
to tell what he can, frcm his official pest
tion. that will interest aud benefit them.
He received n cordial reception at the
dinner, which was served at 8 o'clock, and
made speech. Phineai Pierce, president
Of the Continental bank, presided, and,
after dinner had been disposcd OF, intro
duced Mr., Eckels as the gu st and speaker
Of the aftsrnoon. Mr.. Eckels 5aid:
The commanding position which the
banks of this country occupy in our finan-
cial world cannot b, denied, nor the i'm
portance OF our banking institutions over
estimated Estab ished upon n safe basis
and honestly conducted upon conservative
lines. they are the greatest of all agencies
for the promotion OF a peoples prosperity,
but stripped OF safeguards or dishonesty
managed, he ipjury which they bring
upon a people is only limited by the ex-
tent of their opportunities.
Benefits to All.
TbeSupreme function which they ill is
the distribution OF the peoples wealth, 50
as Tn make it never ending source of
benefit TO all.
Take from them, without cause, sup
port, aud inevitably the injury falls upon
all. Demand Of them in moment of
fright the money given In their keeping
that it may find lodgment i'm hiding
places, and Of necessity the banks must
withdraw this life blood from the arteries
of trade. and the shop and store aud fac.
tory must close and labor 60 unemployed.
Between May and Octob.r Of this year
the Withdrawals in individual deposits In
national banks alone were s299, 900, 600 and
Of banks ard binkers' deposits to the
amount of s79,000,c0o, total of s37s,-
O0000O
To meet this drain the banks were COM
PEELED TO call in loans, thus depicting the
resources # active trade TO the extent Of
S3ls, 600, and from banks and bankers
to the amount OF s5l, 100000. while to their
borrowings was added S37.000,000
Small Withdrawals Counted.
In the light of these figures, apart from
the statistics of like nature which could
be added from state, savings aud private
banks, who can doubt but that the shrink
age i'm deposits on the one hand, contribut.
Ing Only 10 "a uOdTucu UlOHty
and the calling I'm on the other of loans
necessitaiel by the demands of depositors,
withdrawing such vast sums from the ac-
tivities of business, contributed more than
all else to the stagnation from which we
have sufferedy
The most serious feature of the whole
matter was the Withdrawals of small
amounts by depositors who were not bor-
rowers, and whose accounts, as Is we'll
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
the fund which Is used to meet the current
demands Of the business OF each commu-
nifty.
This fact alone is sufficient to refute the
charge that the financial stringency was
the result of bankers panic, were it pos
sible to believe that a body Of intelligent,
shrewd and prudent business men could
be capable of sitting in motion the ma
chinery whics would accomplish their
own distress and ruin.
thrust and believe that this condition
of affairs will soon give way to a better
ard different order Of things, and in
dustries now dsalcned through the action
Of an atfrighted people quickened into life,
Outlook Il Bright.
Happily at last the financial measure
which threw so much of doubt upon our
monetary system, destroyed the conf
3ence of the people In ocr banks and
paralyzed the activ tiles of business no
longer remains upon the statute book
TO plague us It's oper alton worked harm
t. us abroad; it wrought disaster ut
home
It's repeal leaves us at last free 10 enter
upon financial legislation that will accord
with those principles Of sound economies
which through all the past centuries have,
and in the future will, control the worlds
monetary operations. With such legisla-
tion aiding instead of retarding the un-
written laws OF commerce and trade, the
wealth of ths AmSncan people must, in
the very order Of thnfgs, become as vast as
their energies ar unbounded.
In conclusion, permit me to say that tho
advocates oEscuud money must not rest
content with the vantage, ground which
now is theirs The declaifner advocating
money cheap an plenty is yet abroad in
the land and will continue 50 long as
there is nope of terms OF compromise or
yielding to his demands.
am not unmindful of the fact that
cheap money doctrines have time aud time
again taken hold upon our people, but
This seeming popularity is neither indica-
tive Of their real Strength nor of ther
soundness as financial principles. No er-
rors are so spontaneously popular with
the mass OF the people rs financial ones.
and ncne ars 20 easily dispelled il agsres-
siTely attacked.