The Penn's Grove record., 1897-01-01
ECKLHS ON THE BANKS.
The Comptroller Of the Currency Sees
No indications Of a Panic.
BUSINESS OUTLOOK PROMISING.

Deposits are increasing and Loans and
Discounts Expanding--He Predicts
That Money is Coming Ont of Hoard
ing. and will Be Willingly Invested---
Tho Percentage OF Failures is Small.
WASHINGTON, D. G. (speciaD.-The causes
Of the numerous bank failures In various
parts OF the country have puzzled even the
financial experts, and no satisfactory reason
has as yet been advanced In explanation OF
the unrest In banking circles. In order to
give the aspect OF the situation as viewed by
the Treasury Department, Comptroller
Eekels submitted to a formal interview. HIS
views are, In part, as follows:
There is nothing in the charaster of the
bank failures Which have occurred in the
West and Northwest within the past week
or mouth to cause any public apprehension
OF q general return OF bank troubles. III
deduction is to be drawn from them. quite
the reverse would be true. The general
situation for strength in the banking world
OF Chicago, for instance, could not be better
illustrated than by the fact that, without
previous expectation upon the part OF the
public there or elsewhere, the second largest
htllOuhl Duuk III lub Oily COuid 10 CiO5Ou
md no other result follow than the failure
OF institutions for which II had long been the
feeder. The Atlas went out OF its own mo-
tion, paying all OF Its creditors on demand,
and was in a perfectly solvent condition.
cat Minneapolis a ban belonging to the
National system has been closed because OF
a.want of immediate convertible assets, the
accumulation OF a period when fortunes
were being made by the mechanical act OF
marking up the price OF town lots. Tho in
debtedness due Is not beyond u quarter OF a
million, and will probably be paid without
the Intervention OF a receiver, Us will that OF
the bank which failed In Duluth two weeks
since. Wren you add to these two the one
which failed az Sioux City, Iowa, three
weeks ago; the one at Sioux Falls, South
Dakota; the one at Garnet, Kansas, and the
one at Kansas City, Mo-, you have q total
number OF failures OF National banks in the
West since November / Of eight out OF a
total of 1888 located in that section. The
percentage, it is seen, is exceedingly small.
"out of the total Of 1888 National banks in
the East, only two have failed, and Of the
557 in the South, only three. The grand
total failures has been only thirteen out OF
$3.50.
at would be remarkable if after the long
strain OF a political campaign turning 30
largely upon the discussion OF the money
question, with an aggressive earnestness on
the part OF both c~ontendinY parties, some
bank and business undertakings did not feel
the strain and give way. An analysis OF
each case, however, demonstrates that in the
failing bank itself is to be found the direct
cause OF the failure. and while general con-
ditions may have fastened the end, they
could not alone have accomplished 1t. Bad
methods of banking, negligence of officers
and directors, whether in n large city or u
small town, can result in only one hing,
and that failure. These same institutions
would fall in good times under similar
management, and therefore 1t cannot be
argued from them that even under q con-
tinuation Of present business condition fall
ure will come to any banking institution
which has been conservatively and honestly
managed.
'tAs an offset to these sporadic failures,
we find on an examination OF the bank re-
turns under the call Of December II that de-
posts are increasing and. though In a small
er degree, loans and discounts expanding.
1t is certain that money is coming out OF
boarding, n will be willingly invested
whenever 1t appears that the American peo-
pie are ready to devote themselves strictly
TO their own business affairs.
SIN the meantime, before any one enter
tains the belief that because thirteen out Of
a total OF $3.50 banks have closed since No
vember things in the National or other bank
ing world are going 10 the 'demnition bow
vows let him consider each case specific
ally, and know how absolutely individual Is
the cause of each failure.
SIN the light Of things done and the things
attempted to be done, the wonder is, not
thai tho failures have been so many, but
that they have been SO few. 1t all bears
testimony to the fact that, despite our FIRE.
qdent disregard of wholesale business prin-
cipies, We yet remain an exceedingly rich
and prosperous people-a people 50 rich
tha Mulhall, the great English statistician,
recently said OF US that In the year 1895 the
people of the United States must be con-
sidered as the richest people of either
ancient or modern times. with their wealth
increasing at the rate Of seven million dol
lars per day. JAMES Fl. EcRELs,
"Comptroller Of the Currency"