The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-09-19
ECKELS'S TALK TO BANKERS
COMPTROLLER OF THE CURRENCY
SPEAKS AT BAY CITY, MICH.
Says the COuntry's Return to Pros
perity VIII BE Substantial Unless
the Financial VnEaries of the Time
Are CrystaIIized Into Law by Leg
isIators.

BAY CITY, Mich, Sept. 13.-The event
Of the second days session Of the Mlchi-
gan state bankers association annual
convention was the address Of the Hon.
James H Eckels, controller of the cur
rency, which was delivered this morning.
Mr.. Eckels prefaced his speech by con-
graduating the citizens of Michigan upon
the fact that, despite the panic of the
past year, the unprecedented withdrawal
of deposits, the continued depression OF
business and the almost complete cessa-
ton of manufacturing industries, but
four of their state banking institutions
had proved unable to maintain their
solvency, which was a striking testimony
to the wisdom Of conducting banking
operations upon safe principles and along
legitimate lines. Mr.. Eckels referred at
some length to the far-reaching i'm
portance of banking business; its com
canding position in the financial and COM
mercial world; its necessity to the coun-
try as the greatest source Of business
activity and TO the judgment and in
tegrity so essential to its successful man.
agement.
Never" he continued, was the i'm
portance Of the bank so eXemplihed as
during the distresses of 1898 The severest
strain Of the unwise silver legislation of
1890 fell in the first instance upon the
banks of the country. causing depletion
OF deposits and necessitating reductions
Of loans and discounts TO meet the de-
mands upon them. These conditions were
soon reflected in the lines Of commerce,
in stagnation In business and supension
Of industries, for, i'm depriving the banks
Of their resources, the people took from
purposes Of business. As then the dead
ened conditions Of the banks reflected the
status of our commercial world 80 now
their increasing business causes the re-
turn Of commercial activity.
"Our coun'try's return 10 prosperity
will In the very order OF things, be sub
stantial In character and long continued
II the people, on the one hand, refrain
from undue speculation, and our ma
tional legislators on the other from
crystalizing into law the financial vag-
aries OF those who demand of the gov
eminent a great volume Of money with
out regard 10 its intrinsic or representa-
tive value The banks can. In a large
measure, check the speculative tenden-
cles Of the people and deny to them a
credit which their enterprises do not
warrant 1t rests with the people to
lative folly
"Unwlse 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
history Of the operation of every law
upon the currency of the country proves
the result Of the assertion. II there be
any I'm this state who doubt the truth Of
this statement let them read the history
OF the effect Of the first financial legisla-
ton I'm Michigan, enacted Immediately
upon it's admission to the union Your
Cooley, sums IL all up i'm 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 20 wealth than
that trodden by labor and industry. The
new state. under the bold but inexperi-
enced guidance Of its youthful governor
dsdaining the lessons of history, had de-
termined TO try for itself the experiment
OF manufacturing money by the printing
press The condition after the expert
ment might be compared to a forest aft
er a cyclone, everything was PROSTATE
and in confusion. one Of its lessons was
that neither real estate nor anything
else, not Immediately convertible into
money, can support the credit Of bank
currency
81 am sure" said the speaker in con-
clusion, that the people of Michigan
will not have to relearn the lesson OF
more than fifty years ago"
A resolution was adopted thanking
Comptroller Eckels and State Banking
Commissioner Sherwood for the wise ad-
mlnistration Of their offices during the
last years panic.
Don NJ. Dickinson addressed the con-
vention on Duties of Directors Outside
Those Prescribed by Written Laws"
Wellington r. Burt spoke strongly
against combination in the commercial
and savings banking business. He be-
lieved that there combining was a detri-
ment TO the latter class