Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-05-03
NATIONAL CREDIT.
The Views Of Ex-Comptroller
EckeIs on the Currency.
He Thinks that the Present Volume
Of Money Is Sufficient.
Opinions that Many Will Disagree With
Though He Be an Expert.

Washington, May 2-(SpeciaD.-R
cent gold Withdrawals have again directed
attention to the financial question. II the
house Of representatives does anything
with what is called the currency question
at this session, it is believed it will pass a
bill creating commission to investigate
the whole subject and report to congress
the one prepared by Representative Heat
wole of Minnesota. 1t 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 by
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.
1t is great compliment to Mr.. Eckels,
"the boy comptroller" that many mem
bers Of congress like Mr.. Heatwole's plan
because 1t makes Mr.. Eckels member of
the commission. Rarely have we had in
the executive departments an official for
whom all classes of public men entertained
as 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, sis 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
- IL t-aft
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-
TONS The agitation of this question, as
long as 1t 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"
mo, 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
Importance of mere volume Credit, con-
fldence, 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.. Eckels?"
"In my opinion, it is the greenback. 1
know there is 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 heavy load for the govern
ment to carry. 1t is a source of danger.
am not in favor of retiring all the green
backs at once That, of course, would be
inadyisable and so far as I know no one
advocate that method. But they could
be gradually retired without any shock or
inconvenience. s"
Afraid of the Greenback.
"Wherein lies tho danger of tho green
baoks?'
ain this, that they are demand obliga-
lions upon the government They are
payable at sight When presented, they
must be paid in gold, if 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-
erything 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 it Is that once we redeem these notes
they are not retired but must be put in
circulation again. Any business man who
would keep out u 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 u question of time. This government
was year or SO ago up against the day of
settlement. We had a narrow and ex-
pensive escape from disaster then, and
do not think we ought to invite a recur-
renee of the danger"
Functions of the Government.
"What ought to be done now"
"We should first get the government 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 bank The treas
ury is not a bank, and it would not be
wise to make it a complete bank. Having
taken the government out of the note is
suing business, that should be 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
husiueSS world with ito credit currency -