The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-01
NATIONS CREDIT.
Comptroller Eckle's Views on
Currency.
He Thinks That the Volume OF Money
Is Adequate.

WASHINGTON. May i.--ISpecial. RE.
cent gold Withdrawals have again directed
attention to tse financial question. II the
house of representatives docs anything
with what is called the currency question
at this session, 1t Is believed it will pass
bill creating "a commission TO investigate
the whole subject and report To congress
next December. The plan mcst In favor u
the one prepared by Representative Heat
wole Of Minnesota. 1t calls for the crea' |
ton OF q commission composed OF four
men, eminent in finance, political economy |
or banking, TO be appointed by the presl
dent; two members Of the senate, 10 bt
chosen by the vice president, two members
Of the house Of representative, 20 be named
10y the speaker, and the comptroller OF the
currency TO be the ninth member.
1t Is great compliment 10 Mr. Eckels,
"the boy comptroller," +" that many mem
bers of congress like Mr. Heatwole's plan
because it makes Mr. Eckels member OF
the commission. Rarely have we had In
tho executive departments an official foi
whom all classes of public men entertained
as much respect as they do for the present
COIL ltroller of the currency.
The Credit of the Nation.
"The most important thing there is for
us TO do II we want 10 restore prosperity
to the country" said Mr.. Ecke!s today, In
sasponse TO my question, lis 10 establish
| the nas:opal credit so il will not be calico
In question here or elsewhere. There
should be no cloud upon the national cred
| 1t, and no possibility of cloud. One great
trouble during the last four years Of hare
times has been the endless discussion a. t.
the ability of the government 10 mainta.-
| its credit in the eyes of the world by keep
| ing always on hand an emple supply o
gold with which TO redeem its demand OBJ
! legations. The agitation of this question,
as long as 1t continued, worked us harm
both abroad and at home.
"Then you do not believe, as many OF
our people do, that the volume of money
in the country is inadequateS"
"No, do not. There are things OF mere
importance than the volume of money.
Good credit is Of vastly more advantage &c
US than large volume of currency. Mod
ern methods Of transportation and of
banking exchanges minimize the impor.
tance of mere volume Credit, confidence,
stability, arc the prime factors. Without
these no volume of currency can bring
people perma nent prosperity.
what is the chief fault with our finan
cial system at this time MIR. Eckels!"
''In my opinion it is the greenback.
know there is q prejudice in this country
against retirement OF the greenback. The
people attach sentiment to that money.
They say IL saved the Union. But in times
of financial depression especially the green
back is a heavy load for tho government
TO carry. It is a source of danger. am
not in favor of retiring all the greenbacks
at once. That, of course, would be mad
yisable, and SO far as l know no one advo
Gates that method. But they could be
gradually retired without any shock or in
convenience.
Afraid of the Greenback.
"wherein lies the danger of the green.
backs?''
"In this, that they are demand obliga.
tions upon the government. They are pay
able at sight. When presented, they must
be paid in gold II gold be asked for, or
serious consequences to the national credit
will ensue. The government never knows
how many Of these demand notes will he
presented for payment. When everything
is going smoothly and there Is no lack of
confidence in the governments ability 10
pay, none may be presented. But when
troubles come in the financial or CONNER
cial world, as they will come now and
then, the burden upon tho government is
greatly increased. The worst Of it is that
once we redeem these notes they are not
retired, but must be put in circulation
again. Any business man who would
keep out large Issue of his notes payable
on demand. perhaps as many as he could
hope TO take care of, and then reissue them
as fast as they were presented and re-
| laf pd hit,,.
self in trouble. IL would be only cues.
tion of time. This government was IA year
or so ago up against the day of settlement.
We cod narrow and expensive escape
from disaster then, and / do not think
we ought to invite recurrence of the dan.
ger"
Functions of the Government.
"What ought TO be done nowS"
"We should first get the government
out of the business of issuing credit cur.
rency. That is not proper function OF
government, In my opinion. If our treas
ury is to go into the banking business, the
note Aiuing business, then 10 should be
equipped with all the powers of bank.
The treasury Is not a bank, and IL would
not be wise 60 make IL complete bank.
| Having taken the government out of the
note issuing business, that should be turn
ed over TO the banks. In this way the
banks, which depend for their life and
; strength upon the business Of the country,
should furnish the business world with It's
credit currency.
would II be necessary for the banks tc
keep gold rcservof'
Eyes. They would have to keep gold ir
prudent amounts for redemption of theil
notes of issue, just as they now have b.
maintain legal reserve for protection OF
their deposltors. There is where the gold
reserve for protection of demand notes
should be--in the banks and not i'm tho
government When the banks redeemed q
note, the. could destroy IL or reissue IL ac