The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-09-13
Sung By Young Comptroller
Eckles at Bay City.
In His Address to the Michigan
Bankers.
He Says if the Legislators VIII
Refrain
From Disturbing the Finances
of the Country Hereafter.

BAY CITY, Mich, Sept 13-The fol
lowing is an abstract of the speech Of
James H. Eckles, comptroller Of the cur
rency, delivered today before the bank
ers' association of Michigan;
Comptroller Eckles prefaced his re
marks by congratulating 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, aud the almost
complete cessation of manufacturing IN
dustrIes, but four Of their state banking
institutions had proved unable to main
tain their solvsncy, which was a striking
testimony 70 the wisdom Of conducting
banking operations upon safe principles
and along legitimate lines.
Mr. Eckles referred at some length 10
the far-reaching Importance Of banking
business; its commanding position in the
financial and commercial world; its neces-
sity to the country as the greatest source
Of business activity and to the judgment
and Integrity SO essential to its successful
management.
"Never," he continued, "was the impor-
lance of the banks SO exemplified
during the distresses of 1898. The
severest strain of the unwise silver leg
islation Of 1890 fell in the first instance
upon the banks of the country causing
depletion of deposits and necessitating
reductions of loans ana discounts to
These conditions were soon reflected in
the line Of commerce in staguatIon IN
business and suspension of industries,
for in deprsying the banks OF their re-
sources, the people took from them the
means heretofore available for purposes
of business. AS then the dea0ened con
ditiOn Of the banks reflected the status
of our commercial world, So now their
increasing business causes the return Of
commercial activity.
sour cOuntry's return to prosperity will
in the very order of things be substan-
tial in character aud long continued il
the people on the one hand refrain from
undue speculation and our national leg
islAtors on the other from crystalliziug
into law the financial vagaries Of those
who demand Of the government great
volume of money without regard to its
intrinsic or representative value.
"The bank can, in a large measure,
check the speculative tendencies Of the
people and deny to them "A credit which
their enterprises do not warrant II rests
with the people to say whether they shall
suffer from legislative folly
"Unwise financial leg isiatiOn always in
the end falls upon the mass of the PEG
pie and brings upon them the greutest
ruin. It may be long deferred, out the
history of the operation of every bad law
upon the subject of the currency of the
country proves the result of the asser-
ton. Ifthere be any in this state who
doubt the truth Of the statement, let them
read the history of the effect Of the first
financial legislation in Michigan, enacted
Immediately upon its admission to the
union.
Your distinguished citizen and jurist,
Judge Cooley, sums it all up in these
words: such were the fruits of the ex-
pertinent of giving equal and practical
~ unlimited rights in banking TO every
body who wanted shorter road to wealth
than that trOdden by labor and industry.
The new state under the bold but exper-
fenced guidance Of its youthful governor
disdaining the lessons Of history had de-
termined to try for itself the experiment
of manufacturing money by the printing
press.
The condition after the experiment
might be compared to a forest after 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.
II 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"