Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-07-05
FUNCTIONS OF BANKS
Their Place and Importance in the
Community.
ADDRESS OF CONTROLLER ]. 4. ECKELS.
Remarks Before the Michigan State
-.. Bankers Association.
SPENCER o. FISHER TALKS

BAY CITY, Mich, September 13.-At the
annual convention of the Michigan State
Bankers Association today the president,
Spencer o. Fisher, democratic candidate
for governor, presided. His annual address
was devoted to the subject of Increase of
Circulating Medium He strongly advo-
Gated free coinage of silver, and opposed
the monopoly issue of national banks, hold
ing that the government should issue all
money.
The event of the days session was the
address of Mr.. James II. Eckels, controller
of the currency, which was delivered this
morning.
Controller EclkelS' Address.
Controller Eckels prefaced his speech by
congratulating the citizens of Michigan up
on the fact that despite the panic of the
past year, the unprecedented withdrawal of
deposits, the continued depression of bust
ness and the almost complete cessation of
manufacturing Industries, but four of their
state banking institutions had proved I'M
able to maintain their solvency, which was
striking testimony to the wisdom of con-
Quoting banking operations upon safe prin-
ciples and along legitimate lines
MIR. Eckels referred aI-some length to the
far-reaching Importance of banking BUSH
ness; It's commanding position in the inan-
cal ana commercial world; its necessity to
the country as the greatest source of busi-
ness activity, and to the judgment and m
tegrity SO essential TO its successful man
agement.
Never" he continued was the impor-
lance OF the bank exemplified as during
the distresses of 1893. The seyerest strain
OF the unwise silver legislation of 1880 fell
III me hrst instance upon the banks of the
country, causing depletion of deposits and
hecessltating reductions of loans and dis
sS, to meet the demands upon them.
These conditions were soon reflected in tbr
commerce. Z ion,
anu suspension of Industries, for in depriy-
ing the banks of their resources the neoni,
.1Sk from them the means heretofore avail
aole Tor purposes of business As then tho
ueadened condition of the banks refecta1
me status or our commercial world so nov,
.nelr increasing business causes the return
OF commercial activity.
our country's return to prosperitv will
IN TIE very order of things be subst.ptiai
IN character and long-continued If the ne
Spao, III .ne one hand, refrain from undue
speeu'dtion, ana our national legislators
On the other, from crystalizing into the
Jaw tne financial vagaries of those who
oen.and OF the government a great volume
OF money without regard to its Intrinsic or
representative value. The banks can in y
larSe measure. check the speculative ten
uehSles OF the people and deny to them n
creuit which their enterprises do not war
rant. 1t rests with the people TO say
whether they shall suffer from legislative
folly.
"unwise financial legislation always IN
Siu idiiS upon tne mass OF the people
ana brings upon them the greatest ruin
1t may be long deferred but the history
OF the operation of every bad law upon
TIE subject, of currency of the country
proves the result of the assertion. If there
De any in this state who doubt the truth
or the statement let them read the his
tory OF the effect Of the first financial leg
isiation In Michigan. enacted Immediately
upon Its admission to the Union. Your
distinguished citizen and jurist, Judge
Cooley. sums II all up in these words:
Such Were the fruits of the experiment
CT giving equal and practically unlimited
rights In banking to everybody who wanted
shorter road to wealth than that trodden
by labor and industry. The new state I'M
der the bold but inexperienced guidance
OF Its youthful governor. dsdaining the les
sons OF history, had determined to try for
itself the experiment of manufacturing
money by the printing press. The condi-
ton after the experiment might be COM
pared to forest after a cyclone-every-
thing was PROSTATE and in confusion One
OF its lessons was that neither real estate
nor anything else not Immediately con-
vertfbie into money can support the credit
of bank currency q
II am SURF" said the speaker in con-
clusion. that the people of Michigan will
rot have to relearn the lesson of more
than fifty years ago"