The San Francisco call., 1897-08-19
He Points Out the Great
Need for Currency
Legislation.
Many Abuses That Have Crept
Into the System Since
the War.
Both Capital and Labor Must Suffer
Before q Solid Basis Is
Established.


annual meeting OF the Association of the
American Bankers was held at the Hotel
Cadillac this morning. Henry Deschert
of Philadelphia, chairman of the section,
spoke of the importance of trust compa-
nies and the diversified interests they
represent. Incomplete returns show that
the capital stock of the trust companies of
the United States is 1924 500, 000 Mr..
Deschert alluded to the so-called trust
companies that had baen organized by
scheming men for the purpose OF selling
inflated debenture bonds and mortgages,
and he was glad 10 say that most of those
companies had been routed out and their
organizers had fed or been punished.
Beeckinridge Jones delivered The report
of the executive committee. He outlined
the work that is before the section and the
hopes OF the committee that uniformity
in laws of the several States in regard to
trust companies will be promoted and
greater similarity obtained.
Hon. James NJ. Eckels, Comptroller OF
the Currency, spoke on the subject OF
The Need OF Currency Legislation" "
Mr.. Eckels said in part:
The criticism which may justly be passed
not that they have not observed this fiduciary
relation in the great maj ority of instances, but
because in the anxiety 10 declare dividends
upon capital invested there has been a wide
departure from doing commercial business.
The line 10 be drawn in the extension of credit
is not hard of ascert ainment. A bank dealing
with commercial deposits should confine its
granting OF credits TO strictly commercial un-
dertakings. 1t has no right to take CONNER
cial deposits payable upon demand If 1t pur-
sue different policy. Fixed loans and fixed
investments are the province of trust compa-
MES and savings institutions, and not field
10 be entered upon by commercial bank,
handling commercial deposits essential to the
proper conduct of daily commercial business
I am confident that If this line of demarca-
ton 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.
But outside of these acts OF business char
acter to be performed largely by the banker,
in bettering conditions, there are weaknesses
in the business world, beyond the corrective
power OF any private citizen, which must be
eradicated If the hope OF better things is fully
justified. These found their origin in statu-
tory enactment ana their undoing lies solely
with the nations legislative body. The cur
rency problem Is, taking il ali in all, the most
momentous with which the American states
man has to do. 1t is one neither OF politics
nor political preterment. 1t is, as bankers
more than all others ought TO realize, one of
business self-preservation and as such should
command at the hands of those who are sworn
craftsmanship and patriotism commen surate
with the magnitude of the interests involved
1t ought as we'll 10 enlist public sentiment
that would bring swift punishment upon
those who attempt to make 1t the pIaything of
parsy desires and the subject of mere political
oratory.
There is no political legerdemain by which
political prestidlgitRtors can deceive the
public and substitute without the act being
inquired into other issues for that OF sound
currency. Neither one nor all OF them is of
al Ir-7VN - J. Tak
TO the Nauon's and the individuals credit
At the bottom OF the currency question in its
last analysis lies that OF credit and the estee m
in which the Nation is held both at home and
abroad. History" it is said, "bears evidence
that the power of credit Will enceforth decide
finally the great contests OF the world"
Under such truth 1t is "a blunder worse than
crime" IN those clothed with the power of
action to deter, whether from motives of
political strategy, indifference or tmldity,
taking such steps as Will give to the country
monetary laws that will streng then and not
weaken It's financial standing and comport
with Its true power and dignity.
am not unmtndful that some of the evils
OF our monetary system found their origin in
the flush and excitement OF a great war when
men yielded their better judgment to what
seemed the demands of patriotism and sane
toned currency legislation that under other
and different circumstances they would never
have consented should find place place upon
the statute books. But the era of the war long
ago passed ay, and since that day, through
varying political faith have convened at the
country's capital, but yet the currency laws
are still inharmonious, productive of loss 10
every citizen and q cause OF anxiety to the
Nations executive officers. We have had cur
rency legis alton, some OF it bearing promise
OF working out the counlry's financial saliva
ton, but in many such instances it has been
changed and amended into that which has
maze 1t an engine of harm.
myself have never in the past wayered in
the belief, nor do l now, that in the end we
will be possessed of banking and currency
system o strong as to make impregnable the
country's credit It's coming may be long de-
layed and only be attained after tremendous
loss to capital and in jury TO labor. 1t was
the misery and distress entailed by the as
signats and mandats of the French reyolu.
tion that placed France upon the solid rock OF
sound finance. 1t took the threatened starva-
tion OF the peasantry of a great nation to
wipe out the corn laws of England.
but the victory when obtained was com.
plete. And thus, in conformity with the
course OF history, 1t is possible that before the
Nations financial structure rests upon q
foundation firm the eternal hills the
American people will be called upon TO pass
through the awful experience and loss which
would follow in The wake of unchecked paper
and silver hatism. But at last, no matter how
prolonged the struggle or great the suffering
with the aequiescence of all, the monetary
principles which accord with the worlds bust.
ness experience, all financial research, and
every dictate of common honesty, will in the
end prevail In complete and enduring
triumph.