Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-11-19
views of Comptroller Eckles.

said of the panic that 1t is a rich mans
panic" meaning that 1t was caused by
tho clamorous outcries Of the capitalists
Of tho country against the Sherman law.
His remark implied that he thought
there would nave been no panic II these
o~utcries had not been made. One OF the
Alabama senators said during the dis
| cusslon in the Senate OF the bill to repeal
the Sherman silYer-law that not one
senator had said or believed that the
panic was Justly ~chargeable to the opera
ton Of that law.
We do not intend to comment upon
these facts further than 20 say that they
afford abundant reason why statesmen
should resolve 10 ascertain II possible
what caused the panic which has re-
suited in the loss Of SO many hundreds
Of millions Of dollars 20 the country.
We are inclined TO the opinion that IN
the speech which he made last Mon
day before the Bankers Association OF
Boston, Comptroller Eckels indicated the
true facts Of the case when he pointed
out tina the commanding position when
the banks OF this country occupy IN
the financial world eanno be defined nor
the importancs OF our banking institu-
lions ba overestimated. Established
said he, upon q 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, the injury which they bring
upon a people is limited only by tho ex-
tent Of their opportunities" Or. In other
words, the evils which the banks are
capable Of bringing upon the country can
be measured only by the facts after they
are ascertained. And IL these excellent
institutions are wronged and mlsrepre-
sented. the resultant evils are such as
time only can cure, seeing that. as we
have heretofore said repeatedly, conf
dence Is as necessary as solvency to tbs
successful working Of any mammoth
banking system such as the one we have
in operation in the United States, and in
deed to the working Of any banking sys-
tenn worthy Of the name.
Mr.. Eckels says that the supreme
IUnCilOU VI Ddliho 10 bV
the peoples wealth so as TO make It n
ne~ver-ending source Of benefit to all.
"oTheir prosperity" he adds, as the pros
perlty Of every other business interest,
and their activity Is the activity Of every
line Of commerce and branch OF manu-
facture." And then we nave in the next
sentence n hint that the panic was n
panic Of the depositors-that is, the result
Of the removal OF the props which had
sustained tho banking system, or, other
wise stated, the withdrawal Of deposits.
We quote:
'"Take from them without cause sup
port and inevitably the injury falls upon
all. Demand OF them In a moment OF
fright the money given In their keeping.
that II may find Judgment In hiding places.
and OF necessity the banks must with
draw this nfe-blood from the arteries or
trade, and shop and store and factory
must close and labor so unemployed
Those words describe exactly what took
place in the progress Of tho panic. We
quota further;
'"The whole history Of these past months
bespeaks the truth OF this. Between May
lth and October of this year the with
| drawals of Individual deposits in national
! banks alone were $299.0oo. 900. and Of banks
and bankers deposits to the amount OF
| $40, 900, 900, q total Of S37S.0Q0.00. To meet
this drain the banks were compelled 10
call In loans, thus depicting the resources
OF active trade to the extent OF fAS,e0. 900,
and from banks and bankers 10 the
amount Of 81, 900. 900, while to their bor-
rowings was added 100000. In the
light of these figures and apart from the
statistics OF a like nature which could be
added from State, savings. and private
banks who can doubt that the shrink
| age in deposits on the one hand. contri-
buting only 20 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
| activities OF business contributed more
| than all else TO the s~tagnation 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, n constitute
a most stable and important addition to
| the fixed capital OF commercial banks. and
Ia the fund which is used TO meet the
current demands Of the business or each
| community"
These facts are convincing. Comptroller
Eokels went on to say some things which
may not be so generally accepted as true
as will be the above quotations. We let
| him speak for himself as follows:
''This fact alone is sufficient to refute
the charge that the financial %stringency
was the result Of a bankers panic, were
it possible to believe that a body Of intelli-
0ont ohrauvN onA nrpdapf h.,@tnauu ,,..
could be capable OF setting In motion the
| machinery which would accomplish their
| own distress and ruin. i trust and believe
that this condition OF affairs will soon
give way to a better and different order
Of things. and Industries now deadened
| through the action OF an ~affrighted people
| Quiokened into life.
Happily at last the financial measure
which threw 50 much OF doubt upon our
people In our banks and paralyzed the
activities OF business. no longer remains
upon the statute-book to plague us. It's
operation worked harm TO US abroad: IL
wrought disaster at home. Its repeal
leaves us at last free 10 enter upon
financial legislation that will accord with
those principles Of sound economics which
through all the past centuries have and
IN the future VIII control the worlds
monetary operations. With such legis-
~NS ds4tiS AHsttaa ui TclArQlQG inc un-
written laws OF and trade, the
wealth OF the American people must, In
tho very order OF things. become az vast
a. their energies are unbounded.
In conclusion, permit me to say that
the advocates OF sound money must not
rest content with the vantage ground
which Is now theirs. The deelaimer ad-
vocating a money cheap and plenty Is
still abroad IN the land, and will continue
so long as there Is hope OF terms OF COM
promise or yielding to his demands"
Confidence Is a plant Of slow growth"
II will take some time for the country
TO recover from the effects OF that want
Of cenhdsnce Of which Mr.. Ecksls speaks.
But we can afford to wait for the return
of prosperity. however slow may be its
step. " we only know hat Il VIII surely
return. And on this point Comptroller
Eckels speaks words which clearly indi-
cate that he knows whereof he afnrms,
or at any rate Is a loader In whose foot
steps we may all safely follow. 1t IL
profitable 10 read after a man 30 evidently
blest with clear views on tho subjects