St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-09-14
ECKELS IS HOPEFUL.
THE COMP CWOLLER PREDICTS
RENEWED PROSPERITY
On a More Permanent Basis, Pro.
vided the Speculative Spirit
Is Curbed.

BAY CITY, Mich. Sept. 13.-Comp-
troller of the Currency James II. Eckels
spoke today before the Bankers Ass0-
cation of Michigan.
The comptroller prefaced his remarks
by cOngratulating the citizens of Michi-
gan upon the fact that, despite the
panic of the past year, the unprecedent-
ed withdrawal of deposits, the con.
tinued depression of business, and the
almost complete cessation of manu-
featuring industries. but four of their
state banking institutions had proved
unable to maintain their solvency,
which was striking testimony to the
wisdom of conducting banking opera
tons upon safe principles and along
legitimate lines.
Mr.. Eckels referred at some length to
the far-reaclling Importance OF the bank
ing business, It's commanding position
in the financial and commercial world.
its necessity to the country as its great
est source of
Busin ess Activity.
and to the judgment and integrity so
essential to its successful management.
"Never," he continued, was the i'm
portance of the banks so exemplitied as
during the distresSes of 1893. The
severest strain of the unWise silver
legislation of 1890 fell in the first in
stance upon the banks of the country,
causing depletion of deposits, and
necesSitating reductions of loans and
discounts to meet the demands upon
them. These conditions were soon re-
Elected in the line of commerce, in stag
nation of business and suspension of in
Il tt.in
resources, the people took from them
the means heretofore available for the
purposes of business. AS the then
deadened condition of the banks re-
Elected the status of our commercial
world, SO now their Increasing business
causes the return OF commercial activ-
ity. Our c0untry's
Return to Prosperity
will. in the very order of things, be sub
stantial in character and long-continuei
if the people. on one hand, refrain from
undue speculation. and our national
Legislators, On the other. from crystalliZ-
ing into laws the financial vagaries of
those who demand of the government
Il great volume of money without regard
to Its intrinsic or representative value.
The banks can, in large measure.
check the speculative tendencies of the
people, and deny to them a credit which
their enterprises do not warrant. 1t
rests 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. it may be long deferred, but
history of the operation of every bad
law upon the subject proves the result
Of fha qcSprfinn If flara h& any in this
state who doubt the truth of the state
effect of the first financial legislation in
Michigan, enacted Immediately upon its
admission to the Union. Your distin-
guished citizen and jurist, Judge Cooley.
sums it all up in these words: Such
were the fruits of the experiment Of
giving equal and practically
Unlimited Rights
IN banking 10 everybody who wanted a
shorter road to wealth than that trodden
by labor and industry. The new state,
under the bold but-ineXperienced guild
ance of its youthful governor, disdain-
ing the lessons OF history. had deter
mined to try for herself the experiment
of manufacturing money by the print
ing press. The condition after the eX-
pertinent might be compared to forest
after a cyclone: everything was pros
trate and in confusion. One of its les
sons was that neither real estate nor
anything else not Immediately convert
IDLE 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."