The record-union., 1897-08-19
CURRENCY REFORM.
ADDRESS OF THE COMPTROL.
LER OF CURRENCY.
We Will Eventually Have System
So Strong as to Make 1mpreg-
nable the Country's Credit.

The address of the Hon. James H.
Eckels, Comptroller of the Currency,
delivered before the American Bankers
Association at Detroit yesterday, is
Well worth careful perusaL Mr.. Eckles
said:
appreciate the compliment paid me
by the American Bankers Association
in again making me its guest and IN
viting me to address it's members. L
do not, however, fatter myself that
upon the questions of banking and cur
rency reform, which have long been of
public moment, can either throw any
new light or adduce any new facts.
They have so much engaged public at
.tention and provoked public dispute
that. at the best, all arguments are
now but a Encouragement of PROPOSE
tions already laid down, and all facts
given but a restatement of those al
ready known. The wisdom and
strength of their continual iteration
lies in emphasizing, through such
course, the necessity of remedying the
patent evils of a financial system OF
which all complain. The time for such
action could not be more opportune-
The country stands rid, for some years
-at least. of tariff agitation, and ire
-spective Of the merits or demerits of the
new Act. every business man knows, IN
so far as it is concerned, upon what
basis toaengage in manufacturing, trade
and commerce. The evidence accum-
ulates with each days advices that the
long continued depression in financial
circles has passed, and, thanks to five
years of forced economy and cessation
speculation, coupled with to-day's
abundant harvests at remunerative
prices to the agriculturist, a new pros
-perity is coming to the people. This
prosperity, if it is to be of real worth,
ought to be permanent in character
and reach to all classes and interests.
1t demands to this end cooperation
on the part of every citizen of the re-
public, whether he fills a public or
private station Otherwise it will be,
as in the past, 1aw-made in every feat
sure Of it. finding fruition in immeas-
urably worse conditions than have been
upon us. No thoughtful student of af-
fairs can fail to know how largely as
a contributing element to all the past
idleness, agitation, distress and pow
erty has been the extravaganza which
has entered into the Americans every
day life It has reached to both his
public and his private affairs and in
its full effects has been a menace to
the country's welfare. I do not in
dulge in an unwarranted assertion
when I say that much of this must be
chargeable to the over-speculation
which in the years prior to 1893 flowed
from the unwholesome cheapening of
credit on the part of those who have
had to do, in a controlling capacity,
with the moneyed institutions of the
country. There is a point in con1pe-
tition between banking institutions
which lies beyond the danger line and
when touched invariably results in
complete collapse. The fact cannot
be too strongly stated or the truth
made too pronounced of the response
bility resting upon the banker of keep
ing within legitimate bounds the act
ivities of trade, the operations of the
speculator and the standard of public
and private expenditure. IT is by his
aid that enterprise is fostered and
through the lending of the funds in
trusted to his keeping that industry
becomes profitable and labor finds en-
ployment His rule of safety lies in a
conservatism that is healthful and a
prudence based upon careful investi-
cation and analysis. He cannot stand
sponsor for spectators and indorse
speculative programmes without in
volving many institutions in bankrupt
cy and bringing condemnation upon
the profession which he should honor.
IF he recklessly loans to all who ap-
ply, solely to have his funds employed,
he invites disaster When he aban-
dons. on the plea of being pressed by
competitors, the gaining of the legit-
innate profits of banking and enters
upon the practice of paying excessive
rates of interest on deposits, fails to
charge for exchange and collections
and otherwise violates the rules of
sound banking, he is driven, that the
shareholder may have dividends, to in
vest in undertakings which have no
proper place in the business of a COM
anercial bank, to the loss of all con-
cerned. The standard of the bankers
integrity, prudence and economy and
the standard of the relation which he
bears to his fellows ought to be placed
upon the very highest plane. for of all
men in a community he occupies the
one place where are given within his
keeping, in the largest measure, the
business interests of those about him.
The profession of banking cannot af-
ford to have its members base their
acts and rights upon the bare tech
5iealities of the law. There is always
danger when a banker construes his re-
lation to his depositor in the naked
legal light of merely being a borrower
from depositor and that depositor
merely a lender. If this be the legal
status, no banker who has a proper
conception of his duty and is worthy
of his profession, should find refuge in
defense Of his acts, within such narrow
confines. Despite the legal limitation
of the case, there enters into that rela-
fion the position of trustee bound by all
the sense of honor which underlies
every fiduciary obligation. The fu-
ture success of commercial banking
must rest upon these lines. When it is
placed upon this level there will be no
cause for anxiety among deposFtors and
no demonstration on the part Of the
public IN the most trying time of a
sense of shock when a bank failure is
announced.