Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-08-19
HAS PASSED,
Says Mr.. EckeIs Of Long
Continued Depression.
Tariff agitation Over for Present
New Prosperity Coming.
Over spscsIallss msst % chsehsd ~ ihe.
Baakias latrsse.

eaaklag lakre
Detroit. August 1.-THE annual con-
vention Of the American Bankers Assoc
citation was held here. today. and was
notable for the number OF strong adj
dresses that lent interest to It's delIb-
erations. Naturally the great
est interest conferred in the adj
dress Of Comptroller Eckels, who, after
expressing his appreciation at the OPP
portunity afforded to address the bank
ers proceeded at once to the currency
question In its connection with bank
ing. He said the time for remedyin9
the potent evils Of financial system,
of which all complained could not be
more opportune.
The country stands rid." said Mr..
Eckels. for some years at least, OF
tariff agitation, and Irrespective Of the
merits or dement's Of the new act.
| every business man knows, In 80 far
as 1t is concerned. upon what basis 10
engage in manufacturing, trade and
commerce. The evidence accumuIafess
with each days advices that the long
continued depression in financial cir
cles has passed. and. thanks to five
years of forced economy and cessation
speculation, coupled with t0day's
abundant harvests at remuneratiyes
prices to the agriculturist, a new PROF.
perity is coming to the people. This
prosperity. il it is to be Of real Wosth,
ought to be permanent in cdSrActers
and reach to all classes and iafseests ~
l Mr. Esckolo s1o.Is. ~.
speculation was largely responsible ~
the idleness, agit4tion; and distress SOf
recent years; the Extravaganza, as he
termed II, which has entered into the
AmericaIl's every day life. This over
speculation, he said, should be checked
by the banking interest. The relation
between depesitor and banker should not
be confined to the mere legal limitations,
but should embrace feeling of trustee
ship and the accompanying sense Of
homer of such a fiduciary obligation.
The futuresuccess Of commercial bank
| ing rested upon the establishment Of
these relations. Continuing. Mr., Eckels
said:
The criticism which may justly be
passed upon commercial. bankers In
this country is. not that they haxe not
observed this fiduciary relation III the
great majority OF instances. but be-
cause, In the anxiety to declare divi-
dends upon capital invested, there has
been wide departure from doing a
commercial business. The line to be
drawn in the extension of credit is not
hard of ascertainment. A bank dealing
with commercial deposits should con-
fine Its granting of credits to strictly
commercial undertakings. 1t has no
right to take commercial deposits pay
able upon demand, II it pursue a differ
ent policy. Fixed loans and fixed in
vestments are the province Of trust
companies and savings institutions,
and not the field to be entered upon by
commercial bank. handling CONNER
cial deposits. essential to the proper
conduct of daily commercial business.
l am confident that IL this line OF de-
marcatiOn was drawn, instead of there
being many bank failures because Of an
accumulation of uncOvertable assets,
there would be few, and then largely
through criminal dishonesties''
Then Mr.. Eckles waded right into the
currency question. In part he said:
The currency problem is the most
momentous with which the American
statesman has to do. 1t is one neither
of politics nor political preferment. It
is, as bankers more than all others.
ought to realize. one OF business self
preservation and as such should COM
mand at the hands Of those who are
sworn to guard and preserve the peo-
Pies right craftsmanship and pa
triotism commensurate with the mag
MI ID nR 10 f~1A@ T.. A.
the bottom of the currency question In
its last analysis lies that Of credit and
the esteem in which the nations IL
held both at home and abroad.
THAT which we term our currency
system Is one In name only. 1t lacks
every element Of what rightfully can
be called system. It violates in
every essential feature what in all other
departments Of governmental affairs
we dominate system. 1t is not an
orderly combination Of parts into q
whole, according to some rational prin-
ciple or organic idea. Everywhere
there is want Of unity, and instead OF
presenting to the world financial CONF
pleteness 1t exhibits itself as work OF
'shreds and patches Nowhere in any
nation OF equal importance Is there to
be found currency and financial sys-
tenn SO inadequate for the purposes to
be accomplished as here. 1t presents
In Its circulation feature the singular
spectacle Of nine different kinds Of
all except two of which are
or indirectly dependent upon
the credit Of the United States. The
treasury department established By
It. Is the greatest banking institution
In the land. clothed with the least
powers for MISREPRESENTATION and bene-
fetal action. One statute requires the
Of the treasury to redeem
the legal tender notes in coin ON pre-
sentation, and another compels him to
pay them out that they may return
again and again for redemption. Upon
every hand, the laws Of the land make
i an embarrassment to the profltahle
conduct Of the business affairs OF the
It adds to the embarrass-
ment by the forced imitation Of the
volume Of the circulating medium &
Dne time and the forced contraction