The sun., 1902-09-26
ECKELS ON The SUB.TREASURY
FORMER COMPTROLLER POINTS
OJT EVILS or orr SYSTEM.
says the Sub.Trcasury Is Based on a False
Theory In Economics There should
BE Less Gov ernmcnta al Influence In Our
Business Llfe-Wrong 10 Lock Up None,

he Less Go, prnmcnt al Influence In Our
Business Llfe-W Wrong TO Lock Tn None,
PHILADELPHIA. Sept. 25.-Former Comp
troller of the Currency James II Eckels
to-day, at the meeting Of the Pennsylvania
State Bankers Association, condemned the
United States Sub-Treasury system. He
said
Il propose to-day TO discuss question
not distinctly of finance or banking or
currency, but one of broader scope and of
more immediate Importance; for within its
scope come all Of these phases of our busi-
ness interests and more besides The rela-
tions which the general Government bears
toward the private business affairs OF the
country may well challenge the thoughtful
attention OF every citizen of the republic
al time when il is sought to make the
relations still more close, and the control
thereof still more potent factor. in their
conduct.
The plea which make is for less gov
ernmental intimacy and influence in the
business world wish to speak for the
right Of the business man TO manage regu-
late and cont rol he interests in which he
has invest cd his own property, unhampered
by any improper legislative enactment
and free from useless supervision of regu-
lating commissions and other bodies, both
Of national and state origin.
the treasury department in any gov
ernment should find the exercise of it's
legitimate functions within the confines Of
collecting, under the law, the needed
-, "A
of the government IN all its departments
and the disbursement of the same When
II goes beyond and enters, under the hard
and fast rules which here, at least, govern
it, the domain of a wider finance, II does
SO without the ordinary and natural means
of maintaining its position and Of necessity
brings upon Itself confusion, and to the
country's trade uncertainty and loss.
The Government in its Treasury Depart
ment, by force of law. undertakes to be
a bank, but the futilty of the undertaking
becomes manifest when il is known that
it il founded upon no banking principles
and conducted in accordance with no reCog-
ni2ed banking rules In its Sub-Treasury
system it is the bank of the mere safety
deposit vault, or he stocking of the ignorant
and suspicious citizen. Into this Govern
ment safety box each day Is being lodged
vast sums Of money taken out Of the channel
Of trade and commerce at time when
most needed
The glaring inadequacy Of the Treasury
Department as at present working under
the operation Of law, for accomplishing
other results than embarrassment was
never more strongly evinCed than to-day
There is no one al all informed Of the gen
eral condu ions which prevail in every sec
ton Of the country and in every character
of industry who will undertake TO contro-
vert the proposition that the business Of
the country and its financial interests
rest upon sound foundation. There is
in the business world no structural weak
ness.
There can be no Secretary of the
Treasury, no matter how Wide his eA
perioncc or acute his financial perception
who can accomplish more than tenn
porarY make-hlft for relief with the half
created banking system winch makes up
the = IO-TreaSury an Institution based
upon false theories in economics and which
in every part violates correct banking
methods and principles Ii the safety
deposit theory Of banking, as cNemplified
in the Sub-Treasury il the true one, a.
applicable 10 national Government al
fiscal affairs, II should prove equallyes-
sential in the Governmental finance of
States, counties, cities and villages and
these all should so outside the hank, and
each establish its own respective strong
box and withdraw still more of the country's :
currency from daily business So too.
the individual business man should do the
same. for there can bc no correct rule for
one which is not applicable to all who are
engaged in any business which requires
the management OF money and credits
whether il be corporation or an individual.
III all in business received deposits only
to hoard them. soon interchange Of COM
modites would cease. manufacturing come
to standstill, agricultural interests Ian
guish and transportation lines grow idle
That which no business man accepts as a
correct principle in his own Undertakings
his Government enforces to tie wasting of
his own and his fellows subst ance.
A. b Hepburn of the Chase National
Bank, New York, and former Comp