The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-09-14
IMPORTANCE OF THE BANK.


A CITY, Mich, Sept. 13.-The event
of the second days session of the Michigan
State Bankers Association annual conven-
ton was the address of Hon. James III.
Eckles, Controller of the Currency, which
was delivered this morning. Mr.. Eckels
referred at some length TO the far-reaching
Importance OF the banking business; it's
commanding position in the financial ard
commercial world; its necessity to the
country as the greatest sourcet of bust
ness activity and to the Judgment and in
tegrity so essential to it's successful man.
agement. Never he continued, was the
Importance of the bank so exemplified az
during the distress of 1893. The severest
strain of the unwise silver legislation OF
1890 fell in the first instance upon the banks
of the country. causing depletion of de-
posits and necessitating reductions of loans
and discounts to meet the demands upon
them. These conditions were soon re-
fected in the lines OF commerce. in stag
nation in business and suspension of indus
tries. for. in depriving the banks OF their
resources, the people took from them the
means heretofore available for purposes
of business. AS then, the deadened con-
di.ion of the banks reflected the status OF
our commercial world, so now their in
~creasing business causes the return OF CON-
mercial activity.
ouT III Ecluln 10 PROSPERITY VIII.
i'm the very order OF things. be substantial
In character and long continued IL the peo-
pie on the one hand refrain from undue
speculation, and our national legislators.
on the Other, from crystallizing into law
the financial vagaries OF those VINO demand
of the government a great volume OF
money without regard TO its intrinsic or
representative value. The banks can, i'm
a large measure. check the speculative ten
denotes Of the people and deny TO them a
credit which their enterprises do not war
rant IL rests with the people TO say
whether they shall suffer from legislative
folly. Unwise financial legislation always
in the end falls upon the masses of the
people and brings upon them the greatest
ruin 1t may be long deferred, but the his
tory OF the operation OF every law upon the
subject OF the currency OF the country
proves the result OF the assertion. II thsre
be any In this State who doubt the truth
Of this statement let them read the his
tory OF the effect OF the iirsr financial leg
islation In Michigan, enacted Immediately
upon its admission to the Union Your
distinguished citizen and jurfst, Judge
Cooley, sums IL all up In these words:
Such were the fruits OF the experiment
of giving. equal and practically unlimited
rights in banking TO everybody who wanted
a shorter road 10 wealth .han that trodden
by labor and industry. The new state.
under the bod but inexperienced guidance
Of Its youthful Governor. dislaining the
lessons Of history, had determined TO try
for itself the experiment of manufacture
ing money by the printing press. The con-
dition after the experiment misht be com
pared to a forest after a cyctone. every
thing was prCStrdte and in confusion. One
OF its lessons was that neither real estate.
nor anything else not Immediately con-
vertible into money can support the credit
of bank currency.
II am sure" said the speaker in con-
clusion, that the Tsople OF Michigan
will not have 10 relearn the lesson OF more
than fifty years ago"