Evening star., 1897-01-23

and commercial establishments. The panic
of tS72 was almost altogether a business
panic. II was the same with the financial
troubles of 1884, and also with those of
1880. The panic of 1893 Was a bankerS'
panic. Banks of all kinds failed. National
banks, state banks and private banks went
down. Within ten weeks. beginning May.
1893. one hundred and sixty-five national
banks closed their doors. Fifty of these
had to have receivers appointed for them.
and the others were only allowed to re-
sumo under conditions imposed by the
controller of the currency. At this time
the people lost confidence in the banks.
Thousands Of men withdrew their money
and stored it away in safe deposit be es
Today business men are watching the
banks they never have done before
and the real condition of such institutions
Is a matter of vital interest TO all classes
of our people
The man who knows more about our
banks than any other is Mr.. James H.
Eckels, the controller of the currency. He
Is. In fact, the great financial nerve of the
United States. He has his feelers reach
ing out to the banks of every town and
every city. Hundreds of millions of capi-
tai and more than a thousand million OF
uoilars OF deposits owe their safety largely
10 MS care. All the national banks have
10 report to him. and he has a large CORPS
OF bank examiners. or bank detectives. who
are moving about over the United States
ana Wrltihs or telegraphing MIN daily as
70 now our financial institutions stand
he Is in close touch with the greatest
iinanciers OF the country, and the least
change In our financial condition Is AL
most felt by him before it comes to mass
MT. iSckels Is financial genius. He has
one OF the clearest and coolest heads that
M lnis ever presided over millions in the
treasury department. Still. ne looks like
a boy. He does not appear 10 be thirty
'hooeh venture he has passed the forty-
year mark some time ago. He makes Won
think more of an overworked college stu
oent than one of the most responsive otti
t@lais @ or our government. and his pale in
'eiectuaI, smooth-shaven face shows the
refinement of a scholar, rather than the
gross beehness of the average oyerfed
politician.
The Question of n Panic.
Inc hrst question 1 asked Mr.. Eckels
"hen met him in the Treasury De-
partment today was that which begins this
letter. 1t was as to whether we are not
on the edge of a panic. Mr.. Eckels re-
Piled
II think not. I don't see any occasion
"hlGh suggests that a panic Is possible
i ueh iess propabie. 1T Is true there have
been number of bank failures since No
Vember L. but. with the exception of the
National Bank of Illinois, in Chicago. the
national bank failures have been mnim-
The number of failures has also been
sight AT the close of the report year of
1875 We had 3613 national banks and
since that date several new ones have
peen organized. OF this number only six
teen have closed their doors within the
past ten weeks. This Is a very small record
as compared with the first ten weeks of
1Sa3'' Vi
hot
1 asked.
The failures were in each instance
brought about by local conditions and loo al
causes. They resulted either from internal
had management or from the accunula-
ton OF assets during bonn period. These
boom assets under the financial depression
which we have had during the pas, four
years have not been convertible into cash.
They We're not good assets. in other words
and the same banks with the same charac-
ter of assets in the same management
would, believe, have failed sooner or la ter
during period of ordinary business con-
ditionS. 1t can be confidently argued that
the recent failures 10 not indicate any
such changed condition in the Ianking
world as to warrant any suggestion
OF panic On the other hand our returns,
rec eived under the 'aSt call, December IL
1896. for a report of the condition of the
banks show them to be strunge- in cash
reserves than the law requires. They sbCw
that the amount of their deposits we'll
uS 'he VI lAcL ioduS am DISCOUNTS,
have increased, though, of course the in
crease of the last two Items has not been
SD large as might have been hoped for
The reason for this, believe, has been the
agitation of certain subjects, both domestic
and foreign, which has made the investors
timid and those who have money to lend
doubtful about loaning it,
But has the increase been as large as
was expecte Mr.. Eckels?"
NO not i'm the way of loans and dis
counts, but the reason for this has been
the agitation of subjects both foreign and
domestic, which has made investors timid,
and those having money to lend doubtful
about loaning 1t. l believe that as soon
as these agitations are at an end We ought