The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-12-13
ECKELS talks ON FINANCE
The Opinion Of an Expert On the
Currency Question.
DANGERS OF PRESENT SYSTEM
The Comptroller Thinks That We
May Eat Our Cake and Sell 1t Too.
DOleful Consequences OF Not
Hecding His Advice.

New York. Dec. 12.-Ex-Comptroller
of the Currency "A. B. Hepburn, presi-
dent of the Third National bank. gave
a dinner this evening to the Hon. James
II. Eckels, comptroller of the currency,
at the Metropolitan club.
Mr.. Eckels said. in part:
The nations tariff lews have been
changed, and a system involving, in a
large measure. at lease. a reversed
principle in taxation, invoked. There
has been taken from our volume Of en-
acted laws one that was rapidly vitiat-
ing our whole currency system, and
bringing into disrepute American credit
and measure of a kindred character,
fraught with greater danger. has been
prevented. through the presidents cour-
age. from taking its place. We may
well congratulate ourselves that, de-
spite the tremendous loss attendant
upon some of those happenings and the
unsettled influence of others, the coun-
try Is now emerging from their de-
pressing influence, and today is fairly
started on an era of prosperity COM
mensurate with the vastness Of her
resources and the energy of her people.
One Source OF Danger.
one source Of danger which remains
menace to a complete revival of busi-
ness prosperity he pointed out as our
unwholesome currency condition. The
currency system possesses elements
radically wrong and weakening to the
financial world. and everywhere the
4VStpm cto
great subject of discussion and debate.
He said:
The government ought at once to
cease Issuing credit currency and have
as speedily as possible its treasury de-
partment return to Its legitimate func-
ton OF collecting and disbursing the
same. These credit issued evidences of
the governments Indebtedness ought TO
be paid because they are now and have
been under existing circumstances more
expensive to maintain than the pay-
ment of interest on bonds for their
FUNDING could possibly be- Again they
should be retired through payment be-
cause under present laws whenever
there is disturbance In our business
world, the embarrassment is made two
fold greater by the reason of the doubt
OF proper payment of the government
of these demand currency OBLIGATIONS
and the taking through them from the
government for export 1t Is absurd
that the government should not have
one source Of supply for the gold that
all people want. The banks will not as
formerly supply the amounts necessary
for the reason that they know what the
ultimate result of pursuing the present
currency policy will be. The skilled
business man who cares nothing for
the effect politically wishes the demand
obligations of the government paid be-
cause he knows that as matters stand
to-day they are a source OF cheapening
to the American credit and the with
holding from us Of large sums Of money
which otherwise would here seek in
vestment. This is SO serious a side of
the matter that the cost Of interest on
the necessary bonds to pay this debt
Is as nothing compared to 1t. There are
now ample funds in the treasury to
meet the present and future obliga-
tions, but gold still goes from us and
no amount Of increase through the op-
eTdtion VI tdTiiI laws VIII cnGnge the
situation and put an end to the taking
from the treasury for exoprt, and what
is equally patent and more significant,
for boarding by our own people.
Would Lead tn Nh Contract
The cancellation of the legal tenders
would lead to no contraction. They
could not and would not be all presented
at once. The banks on the one hand
would supply much of the needed cur
rency to take the place Of such as were
presented and. on the other. just as soon
as 1t was demonstrated that we were
freed from this weakness to our credit,
so great an amount Of foreign gold
would flow in to be invested that there
would be no deficiency whateverF The
one conspicuous fact In history Of every
civilized people has been that money
has never been wanting where such
peoples credit, individual and national,
is not under suspicion We put our
selves in.such a position we will have no
cause to fear the lack of currency to
carry on any proper undertaking. II we
do not we must inevitably reach a point
where we will be completely cut Of
from foreign and where our own re-
sources will be of little avail.