The Saint Paul globe., 1896-12-10
ECKELs ON BANKING.

This administration has been partic-
ularly fortunate in the ability of the
men whom it selected for high positions
Isle has made a record that places
him among the great financiers of our
time. The report of Mr.. Eckels, the
comptroller of the currency, justifies
the high esteem in which he has been
held. He is one of the clearest thinkers
and ablest writer's on inanciel topics.
His report on the currency is a docu-
ment that should be most carefully
studied, and that might well serve as
q guide to congress in considering nee
essary legislation. We do not refer
to his suggestion for the Improvement
of the national banking act. That is
matter of official duty. The national
banking act is in existence, and Mr..
Eckels has charge Of its administra-
tion. 1t is a part of his work, conse-
quently, to study in what particulars
it might be made more effective, with
out thereby committing himself to the
position that it should be maintained
and. extended. The idea of permitting
the. Festa bhshment of branch banks in
small towns and villages where there
are now no banking facilities at all is
one that has been frequently discussed
and is supported by the excellent re-
suits obtained from a similar policy in
the provinces of Canada Assuming
that We are to have the national bank
ing system for some time to come,
this recommendation is worthy of care
full attention.
But it is in the larger field of general
policy that Mr. Eckels gives the most
valuable suggestions. If his ideas
tails of the national banking system
would be totally changed, because prac-
tically all the banks of the country
would then come under the national
caption. He urges what all men of
sound ideas now agree upon, the sep
aration Of the government from the
banking business. Whatever may be a
mans views about the gold standard
and the silver standard, all except the
outright fiatists ought to be in ac-
cord with MIR. Ecl1els in this. To make
the government perform the functions
of bank of issue, as it now does, with
out comforting upon it those safeguards
that every bank of issue must have.
is financial insanity To have it exer-
else the functions of a bank of deposit
through the subtreasury system, with.
out being governed by the principles of
ordinary banks of deposit, is equally
financial folly. These axioms REQUIRE
the retirement Of the greenbacks by
whatever method may be thought best
and the assumption by the banks of
the country, under federal supervision.
OF the business of note issuing and note
redemption.
This is the plan presented many
times by the Clio e, and the only
plan that is consistent with the princi-
pies Of finance that have been deveI-
oped in the history of all great nations
Of the world. 1t cannot be summed up
better than in the words of Mr.. Eckels
himself:
1t is respectfully submitted that legislation
by congress. based upon safe and prudent
lines, having in view the gradual payment and
cancellation OF the credit currency now main
tanned by the government and the issuance
hereafter of all of such currency through the
banks, with full responsibility therefore placed
upon them, should be had at the very earliest
practicable moment. The results which would
follow such enactments would be beneficial
and neither would monopoly be created nor
favor shown thereby.
The financial problem is so big, the
dangers that lurk in it have proved
themselves SO momentous and the ne
cessity Of action is so apparent, that
we cannot see why men of either party
who appreciate the necessity of legisla-
ton to reform our monetary system
should go away from the platform here
laid down. 1t has nothing to do with
Democratic politics or Republican poll
tics. It is a system dictated by sound
sense and by universal experience. Let
congress take such action as this, let it
bat indicate that it proposes to go
forward along these lines. although it