The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1897-01-29
BCKEtS ON CURRENCY.
Gives His Views Before the House
Committee on Banking.
NO CONTRACTION WOULD FOLLOW
The Retirement of the Gree enbaoks-Im. n
proved Credit More Important Than
Moro Money-Necessity of Ceasing tho
Government Issue Of Credit Notes.


! proved Credit More Important Thar
Moro Money-Necessity of Ceasing the
! Government Issue Of Credit Notes.
| WASHINGTON, Jan. 29.-The comptroller
of the currency, Mr. Eckels, yesterday
gave his views upon the financial condi.
tion OF the country to the house com.
mittee on banking aud currency. Several
bills introduced by members of the house
had been referred to Mr.. Eckels for hi,
judgment, and he analyzed those, besides
giving his views upon the money question
In general.
Mr. Eckels said while there was no
doubt Of the necessity for changes in the
governments financial situation, the pub.
lie was disposed to attribute too much OF
the existing troubles to the lack of none.
tary leg islatiOn. The day was past when
the volume of money was its most impor-
tant factor. Improved facilities for trans.
portation and methods of exchange had
lessened the Importance Of q large volume
OF money. Improved credit was more i'm
portant. The first essential in this coun.
try was the stability of public credit. The
apparent reluctance Of the people of the
United States to redeem their public obli-
cations was tho chief cause OF distrust.
'The current redemption of the demand
obligations of the government is the
chief problem of the treasury. So far as
the contrac lion OF the currencT is con.
csFneu, do nst think ID would follow The
gradual retirement Of tho Ereonbac3 IS,
proTided credit was reasonably stabis.
BANKS would supply the needed currency,
or gold would come from abroad The
pursuance OF Secretary McCulloch's pol.
Icy would have disposed OF the question.
Any business man who constantly re-
deems his notes without re trim I them aud
keeps them out constantly will come to
setting day that will break him
"Iha chief feature Of banking bill
would be to take from the government
The issue of credit notes. The banks can
do this Banks conducted on practical
banking principles instead of speculative
principles could satisfy the currency
needs of business Before the war the
banks had always furnished sufficient
gold for business"
In the course Of discussion of the war
conditions, Mr.. Eckels gave the opinion
that the government might have main
talned gold payments throughout the
war, and said that Senator Morrill, be-
lieved the issuance Of the green banks had
greatly increased the cost OF the war
Recent disturbances had been due, Mr..
Eckels asserted, to the dstrust aroused by
the policy, first, of stamping trade dol.
lar as 100 cents when it was not worth that
without something behind it and the ad.
ditlon Of tho Sherman law The repeal of
hn har a luxry al tha Al
against free silver, with tho unusual for
eign demand for breadstuffs, had restored
normal conditions, but II at any time CON-
ditions arose which created demand for
lOO,OO0,0OO of gold, that gold would be
drawn from the treasury.
In reply to II question from Mr. Cox, Of
Tennessee whether there was any objec-
tion to the use of the greenbacks as basis
Of banking, Mr. Eoksls said: THAT
would be imprisonment for life instead of
direct execution. Under such system"
he added, III bank went out Of business
or contracted its currency, the govern
nent should redeem the notes. Bonded
securities were payable on certain date,
but any banking system based on them,
any system which based the volume of
currency on anything but the needs of
business was erroneous"
Mr.. Cook, Of Wisconsin, inquired why
the endless chain process had not oc-
CURED during the fourteen years begin
ming with 1873, when the government was
buying 50 much silver. The explanation
Mr.. Ecliels gave was that during these
years there were only $346, ,0O0, 900 of obli-
cations IN the public mind redeemable in
gold, while last year there were $156, ,0OO,-
900 more.
Referring to the bond issues by the pres
ent administration, Mr.. Eckels said: "The
government should not be put In the posi-
tlon ofa mendicunt asking aid nor should |
1t be at the mercy Of fnanCiors. No gov |
can base its financial system on |
Mr.. Newlands asked whether there was |
any debtor nation that was able to keep |
It's uncovered paper money at par with
gold To this Mr. Ecliles replied that he
knew of no such case except the United
States, but maintained that they could do
so if the paper was issued by the banks
instead Of the government
In reply to question Mr.. Eckels said
hat in his opinion there is sufficient gold
n the world to meet all demands II prop.
,rly used. There is about 500, 900 600 OF
gold in the United States much of which
lad been in safe deposits until after the
election.