The morning call., 1894-09-14
aECKELS ON BANKS.
They Hold the Credit of
the Country.
CAN RULE AS THEY LIKE.
Stopping Enterprise by Locking
Up the Money.
THUS KEEPING THE WHIP HAND.
All of Which the Comptroller of the
Currency Holds to Be Most
CommendabIe.
THUS KEEPING THE WHIP HAND.

BAY City, Mich, Sept 13-The event of
the second DAYS session of the Michigan
State Bank Association's annual conven-
ION, was the address of Hon. James II.
EckelS. Comptroller of the Currency,
winch was delivered this morning. Mr..
Eckels spoke at some length of the far
feachlng Importance of the banking busi-
ness, its commanding position in the finan-
clai and commercial world; its necessity to
the country as the greatest source of busi-
ness activity, and of the judgment and IN
tegrily so essential to its successful man
agement
Never" he continued. ''was the i'm
portance of the banks so exempli6ed as
during the distress of 1898. The severest
strain of the unwise silver legislation of
1890 fell in the first instance upon the
banks of tie country, causing depletion of
deposits ana necessary reductions OF loans
and discounts TO meet the demands upon
them. These conditions were soon re-
flected in the line of commerce, in the
stsgnation in business and in the suspen-
sion of industries, the foreign investors de-
priving the banks oftheir resources, the pso-
pie taking from them the means heretofore
available for the purposes of business. As
The then deadened condition of the banks
reflected the status of our commercial
world, so now their increasing business
causes the return Of commercial activity.
"Our c0untry's return to prosperity
within the very order of things will be
substantial IL character and long con-
tinued. If the people on the one hand re-
frain from undue speculation. and our
national legislators on the other hand
from erystallizing into law the financial
vagaries OF those who demand of the Gov
ernment great volume Of money without
regard TO lis intrinsic or representative
value. The banks can, in q large measure,
check the speculat We tendencies of the
people, and deny unto them 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 greatest ruin.
It 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 this assertion. II
there 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 immedi-
ateiy upon its admission to the Union.
Your distinguished citizen and jurist,
} u-dge Cooley, sums it all up in these
words:
"' Such were the fruits of the experiment
of giving equal and practically unlimited
rights In banking to everybody who wanted
d shorter road to wealth than that trodden
By labor and industry The new State,
under the bold but inexperienced guidance
of its youthful Governor, disdaining the
lessons of history, had determined to try
for itself the experiment of the man0fact-
ure of money by the inting-press. The
condition after the experme-t I might be
compared to a forest after a cyclone.
Everything was prostrated and in confu-
sion. One of its lessons was that neither
real estate nor anything else not convert
ible into money can support the credit of
bank currency.
81 am sure" said the speaker in concIu-
sion, that the people of Michigan will
not have to be taught again the lesson of
more than fifty years ago."
a resolution was adopted thanking
Comptroller Ecksls and State Bank Com
missioner Sherwood for the wise admins
tration of their offices during last years
panic. Don NJ Dickinson addressed the
convention on Duties CT Directors Out
side Those Prescribed by Written Laws"
The conven ton closed tonight with
banquet.