The herald., 1894-09-14
BUSINESS OF BANKING.
COMPTROLLER ECKLES DESCANTS
ON ITS IMPORTANCE.
He Addresses tho Michigan State Bank
Association - sundry sidswipss
at Fiat Money and Eree
Silver.

BAY CrrY, Mich, Sept. 13.-Ths event
of the second days session of the Michi-
gan State Bank associations annual
convention was the address Of Hon.
James H. Eckels, comptroller of the
currency, which was delivered this
morning. Mr.. Eckels spoke at aome
length OF the far-reaching importance
OF the banking business, its commands
ing position in the financial and COM
mercial world, its necessity to the eoun-
try as the greatest source of business
activity, and OF the judgment and in
tegrity 30 essential to its successful
management.
"Never," he continued, Twas the i'm
portance OF the banks so exemplified "a
during the distress 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 necessary reduction OF
loans and discounts to meet the de-
msnds upon them. These conditions
were soon reflected in the decline OF
commerce, in stagnation OF business
and suspension of industries. the for
eign inventors depriving the banks OF
them the means heretofore available
deadened condition OF the banks re-
world, go now their increasing business
indicates the return of commercial
activity.
"Our country's Yetu IN to prosperity,
within the very order of things, will be
substantial in character and long con-
tinued if the people, on the one hand.
refrain from undue speculation, and our
national Legislators, on the ether hand,
refrain from crystallizing into law the
financial vsgaries of those who demand
of the government q great volume of
money without regard to its intrinsic or
representative value. The banks can in
q large measure check the speculative
tendencies of the people and deny unto
them q credit which their enterprises do
not warrant. 1t resta with the people
to say whether they shall suffer from
legislative folly.
'Unwise financial legislation always
in the end falls upon the mass OF the
people and brings upon them the great
est ruin. 1t may be long deferred, but
the history Of the operation of every bad
law upon the subject OF the currency Of
the country proves the truth Of the as
ssrtion. II there be in this state any
who doubt the correctness of the state
ment, let them read the history of the
effect OF the first financial legislation in
Michigan, enacted Immediately upon its
admission to the union. Your distin-
guishsd citizen and jurist, Judge Cooley,
Gums it all up in these words:
Such were the fruits of the expert
msnt of giving equal and practically un-
limited rights in banking to verybody
who wanted a shorter road to wealth
than that trodden by labor and indus
try. The new state, under the bold but
inexperienced guidance OF its youthful
governor, disdaining the lessons OF his
tory, had determined to try for itself
the experiment of the manufacture of
money by the printing press. The con-
dition after the experiment might be
compared to q forest after cyclone.
Everything was prostrsted and in CON-
fusion. One of its lessons was that
neither real estate or anything else. not
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 80 years ago."
A resolution was adopted thanking
Com ptroller Eckels and State Bank Com
missioner Sherwood for the wise admin
istration of their Offices during last years
panic.
Don N. Dickinson addressed the con-
vention on the duties OF directors. out
side those prescribed by written laws.
The convention closed tonight with 3