The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-24

reaching out to the banks of every town
and every city. Hundreds of millions
of capital and more than thousand
million of dollars of deposits owe their
safety largely to his care. All the ma
tionaI hanks have to report to him,
and he has large corps of bank exam
iners, or bank detectives, who are NOV
ing about over the United States, and
writing and telegraphing him daily as
to how our financial institutions stand
He is in close touch with the greatest
financiers of the country, and the least
change in our financial condition is al
most felt by him before it comes to
pass. Mr.. Eckels is a financial genius.
He has one of the ciearest and coolest
heads that ever presided over millions
IN the treasury department. Still. he
looks like boy. He does not appear to
be thirty, though 1 venture he has
passed the fOrty-year mark some time
ago. He makes you think more of an
over-worked college student than one
of the most responsible officials of our
government, and his pale intellectual.
smooth-shaven face shows the refine
ment Of a scholar, rather than the
gross beefiness of the average overfed
politician.
QUESTION OF A PANIC.
The first question I asked Mr.. Eckels
when 1 met him in the treasury depart
ment today was that which begins this
letter. 1t was as to whether we are not
on the edge Of panic. Mr.. Eckels re-
piled:
II think not. I don't see any occa-
sion which suggests that a panic is
possible, much less probable. It is true
there have been a number of bank
failures since Nov. l, but, with the ex-
ception Of the National Bank - Illinois
In Chicago the national bank failures
have been unimpOrtant both as to
capital and deposits. The number of
failures has also been Slight. At the
close Of the report year OF 1896 we had
1873 national banks, and since that
date several new ones have been Or
gained. Of this number only sixteen
have closed their doors within the
past ten weeks. This is a very small
record as compared with the first ten
weeks Of 1897
'What were the causes Of the fail
ures % 1 asked.
THE failures were in each instance
brought about by local conditions and
local causes. They resulted either from
internal bad management or from the
accumulation Of assets during a boom
psriod. These boom assets under the
financial depression which we have had
during the past four years have not
been convertible into cash. They were
not good assets, in other words, and
the same banks with the same char
acter OF assets in the same manage
rlent would, believe, have failed soon
er or later during a period Of ordinary
business conditions. 1t can be conn.
IDENTIFY argued that the recent failures
do not indicate any such changed con.
dition In the banking world as to war
rant any suggestion of a panic. On
the other hand our returns received
under the last call, Dec. II, 1895, for a
report of the condition of the banks
show them to be stronger in cash re-
serves than the law requires They
show that the amount of their de.
posts, as well as the amounts of their
loans and discounts, have increased.
though. of course the increase of the
last two items has not been so large
as might have been hoped for
But has the increase been as large
rs was expected. Mr. Eckels? p"
''No. not in the way Of loans and dis
counts. hut 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 lending
1t. I believe that as soon as these
agitati0ns are at an end me ought to
enter upon condition Of business af-
fairs which will give employment to
labor and business to ali conducting
the operations of trade and commerce"
OUR NATIONAL BANKS.
'How much money is there in the
national banks today?''
e9an.AFGord1ng to the last report, made
JnDc,tohes 6. the amount was $343, 143,-
$50 sa andl the amount Of deposits was
${.5aEs sss5 sQQ5e-'
f'VVllera are these banks?"
'"I'h-y are scattered ell over the