The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-20

! ing respectable place among nations, and
should learn from Japan.
---~>
CONTROLLER ECKELS'S ADDRESS.
The country has learned to expect that
when MIR. Eckes, controller of the cur
rency, speaks he will say something. No
| controller of the currency since John Jay
Knox has done as much to disseminate and
| establish sound monetary and banking
| views as Mr.. Eckels has. This is the more
| remarkable because he has never been en-
! gagged in the banking business, and it is
high tribute to his ability that the profess
sional bankers of the country accord the
| highest measure of praise to his practical
| management of the banking system and of
respect to his views on financial questions.
1t will be fortunate for the country if the
national bank system continues to be as
wisely controlled and supervised as it has
been by Mr.. Eckels.
| His address before the American Associa-
| ton of Bankers at Detroit contained some
excellent advice of warning kind for
bankers. 1t was largely an appeal to
| bankers to confine themselves to legitimate
banking business, to remember the fiduciary
| relation that exists between them and their
| depositiors, and never be tempted by COM
| petition or the desire of gain into specula-
tive or illegitimate operations. He en-
| phasized the idea that, next to strict in
| tegrity, extreme caution and conservatism
were prime requisite of the banker. When
others are excited or specializing he should
| be cool and on his guard. Said Mr.. Eckels:
The banker cannot stand sponsor for spec
-ulators and indorse speculative programmes
| without involving many institutions in
| bankruptcy and bringing condemnation
upon the profession which he should honor.
| II he reckeSSly loans to all who apply
solely to have his funds employed, he in
| vites disaster When he abandons on the
! plea of being pressed by competitors, the
| gaining of the legitimate profits of banking
| and enters upon the practice of paying eX-
| cessiVe rates of interest on deposits fails
| to charge for exchange and collections and
otherwise violates the rules of sound bank
| ing, he is driven, that the shareholders may
| have dividends, 20 invest in undertakings
which have no proper place in the business
| or commercial bank to the loss of all con-
| cerned.
Again, speaking of extending credits and
the Importance of a bank combining itself to
strictly commercial transactions, he said:
The line to be drawn in the extension of
| credit is not hard of ascertainment. A
| bank dealing with commercial deposits
| should confine it's granting of credits to
| strictly commercial undertakings. 1t has
| no right to take commercial deposits pay
| able upon demand if it pursue a different
| policy. Fixed loans and fixed investments
are the province of trust companies and
| savings institutions, and not the field to be
| entered upon by a commercial bank, hand
| ling commercial deposits, essential to the
| proper conduct of daily commercial bust
| ness. I am confident that if this line of
| demarcation was drawn. instead of there
| being many bank failures because of an
ACCUMULATION of unconVertible assets there
| would be few, and then largely through
| criminal dishonesties.
| If these views had been understood and
practiced by all national bankers the num-
Der Of failures would have been far fewer.
| The two most disastrous bank failures in
| this city, though one was not a. national
bank, were caused by engaging in outside
| operations, loading up with real estate Sc
curities or reckless extension of credits.
| 1t is to be hoped the hundreds of bankers
who heard Mr.. Eckels's address will re-
| member his warning.
A large part of the address was devoted
| to emphasizing the necessity for a reform
of our currency system. 1t is gratifying to
| find a man in public life who, seeing the
! evils and dangers of the present system,
has the courage of his convictions to char
| acterize them as strongly as Mr.. Eckels
! does. Having made a thorough study of
| our currency system from a point of view
| that enables him to properly estimate the
whole subject he is satisfied that our pres
| ent currency system is weak and dangerous
| He regards the false status of the green
| backs and the artificial relation between
| silver and gold a menace to the business
| of the country and the welfare of the gov
eminent that cannot be cured or averted by
| merely increasing the revenues. He said:
| The difficulty is more far reaching one
| than mere lack of revenue. 1t touches the
| vital point in trenching upon the confidence
| of those dealing with us in our ability and
| continuing determination to maintain gold
| payments. Complete confidence cannot be
| restored by increasing the governmental
| income, but even if it could there would
| be no guarantee against future impairment
| of it through the same cause. That danger
| can only be eliminated by rendering it i'm
| possible to have the treasury the one source
| of gold supply for the people of every ma
| ton. 1t is not sufficient to have cur
| rency good to-day put an earnest must
| be given that 1T will DO good tomorrow
| and throughout the future. That promise
| cannot be accepted unless legislative ac
| ton once for all establish beyond the per-
| adventure Of q doubt that ours is gold
| standard country with laws establishing the
! fact so plain that he who runs may read"
| and with a treasury so equipped and
| sourceful as to be unmoved, no matter how
strongly assaulted 1t will not be fully
| an executive officer, and not the uncon-
| tradicted expression of statutory law
There is no false ring in these expressions
and no attempt to create the impression
that all is we'll when all is not well. They
are a distinct recognition of the urgent
necessity of reform in our currency sys-
tenn. and no doubt they express the views
of intelligent business men Throughout the
country, irrespective of party.
Not long since the Anderson Bulletin con-