The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1897-05-04
THE NATIONAL CREDIT.
Mr.. Eckels' Views on the Cur
rency.
THE oBOY COMPTROLLER" TALKS.
He Thinks That the Volume of Money Is
Ample and Expresses Opinions That
Many VIII Not Agree With. Even Though
He BE Called AN Expert.

Many Will NOT agree WIN, Even hhouk"
He BE Called an Expert.
WASHINGTON. May ESPECIAL. Re
cent gold Withdrawals have again directed
attention 10 the financial question III the
house Of representatives does anything
with what is called the currency question
at this session, 10 is believed IL will pass
bill creating commission To investigate
the whole subject and report 10 congress
next December The plan most in favor IL
the one prepared by Representative Heat
wole of Minnesota. IL calls for the crea-
ton of commission composed of four men
eminent in finance, political economy or
banking, TO be appointed by the president;
two members of the senate, to be chosen 10y
the vice president, two members of the
house of representatives to be named by
the speaker, and the comptroller of the cur
rency TO be the ninth member
IL is a great compliment to Mr.. Eckels,
1.-THE boy comptroller, that many mem
bers of congress like Mr. Heatwole's plan
because it makes Mr. Eckes a member of
the commission. Rarely have we had in
the executive departments an official for
ms much respect as they do for the present
comptroller of the currency.
The Credit of the Nation.
"The most important thing there Is for
us TO do if we want to restore prosperity to
the country, said Mr.. Eckels today, in re-
Spouse To my question, lis to establish the
national credit so it will not be called in
question here or elsewhere There should
be no cloud upon the national credit, and
no possibility of cloud. One great trou-
bic during the last four years of hard times
has been the endless discussion as to the
ability of the government to maintain Its
credit in the eyes of the world by keeping
always on hand an ample supply of gold
with which to redeem its demand obliga
tions. The agitation of this question, as
longas it continued, worked us harm both
abroad and at home"
"Then you do not believe, as many of
our people do, that the volume of money
in the country is inadequate?"
'No, l do not. There are things of
more importance than the volume of
money. Good credit is of vastly more adj
vantage To us than large volume of cur
rency. Modern methods of transportation
and of banking exchanges minimize the
fldonce, stability, are the prime factors.
Without these no volume Of currency can
bring people permanent prosperity
"What is the chief fault with our finan-
cial system at this time, Mr.. EckelsS'
I'm my opinion, it is the greenback. 1
know there is u prejudice in this country
against retirement of the greenback The
people attach sentiment to that money.
They say it saved the Union. But in
times of financial depression especially the
greenback Is a heavy load for the govern
ment to carry. 1t is u source of danger. /
am not in favor of retiring all the green
backs ut once. That, of course, would be
inadvisable, and so far as l know no one
advocate that method. But they could
be gradually retired without any shock or
inconvenience. "
Afraid of the Greenback.
Wherein lies the danger of the green
backst"
''In this, that they are demand obliga-
tons upon the government. They are
payable at sight. When presented they
must be paid in gold, il gold be asked for,
or serious consequences to the national
credit will ensue The government never
knows how many of these demand notes
will be presented for payment. When ev-
erythng is going smoothly and there is no
lack of confidence in the governments
ability to pay, some may be presented
But when troubles come in the financial
or commercial world, as they will come
now and then, the burden upon the gov
eminent Is greatly increased The worst
OF 1t is that once we redeem these notes
they are not retired, but must he put in
circulation again. Any business man who
would keep out large issue of his notes
payable on demand, perhaps as many as
he could hope to take care of, and then
reissue them as fast as they were pre-
sented and redeemed, would sooner or
later find himself in trouble 1t would be
only question of time This government
was year or SO ago up against the day of
settlement. We had n narrow and ex-
pensive escape from disaster then, and l
do not think we ought to invite recur-
renee of the danger"
Functions of the Government.
"What ought 10 be done nowg'
"Weshould first get the governments out
OF the business of issuing credit currency
That is not a proper function of govern
ment, in my opinion. If our treasury Is To
go into the banking business, the note is
suing business, then it should be equipped
with all the powers of II bank The treas
ury is not IA bank, and it would not be
wise to make 10 u complete bank Having
taken the government out of the note is
suing business, that should he turned over
the banks. In this way the banks, which
depend for their life and strength upon the
business of the country, should furnish the
business world with its credit currency.
Would it be necessary for the banks to
keep gold reserycY''
Eyes. They would have to keep gold in
prudent amounts for redemption of their
notes of issue, just as they now have to
maintain "a legal reserve for protection of
their depositors. There Is where the gold
reserve for protection of demand notes
should be-in the banks, and not i'm the
| government. When the banks redeemed
note, they could destroy 10 or reissue it ac
cording TO the needs of trade There we
should get elasticity"
DO you think 1t wise To give the banks
the power TO say how much or how little
money there shall be I'm the country-to
contract or expand the volume of the cur
rencyS"
why not? The banks may always he
depended upon to keen out every dollar