New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-26
ECKEL.S RAPS THE TREASURY.
HE SAYS THE SYSTEM Is BASED On
FALSE THEORIES.

Philadelphia Sept. 25.-At to-days session Of the
Pennsylvania State Bankers Association Conven-
ton. James H. Eckels. Of Chicago ex-Controer
Of the Currency. the principal speaker. His
subject The Governments Relation to the
Citizens Business Affairs" He pleaded for less
government influence in the business world. The
functions of the Treasury Department, he declared
should be confined collecting and dishursing law
full revenues He continued:
When it goes beyond and enters. under the hard
domain of a wider finance. does without the
binary and natural means of maintaining its posi-
and TO the countrys trade uncertainty and loss The
of law undertakes he hank. but the futility of
the undertaking becomes manifest when it is
nfzed banking rules. In its sub-Treasury system 1t
Is the bank OF the mere safety deposit vault or
the stocking OF the ignorant and suspicious citizen
IN ms government safety boX each DAY is peIns
oGged vast sums or money taken out or the chail.
nels OF trade and commerce at time when most
The glaring inadequacy of the Treasury Depart
nent was never more strongly evidenced than to-
no matter how wide his experience or acute his
\ teTn9orsrv mskeshfr for relief With this hal
created banking system based upon false theories
correct banking methods and principles.
a B Hepburn. of New-York ex-Controller of the
Currency. compared the currency systems of Ger
many and the United States
After commencing the German system MI Hep
burn said:
You'd peraventure The only fexfbility it possesses
Is supplied by the product OF mines and the ho
and flow of gold as it goes ard comes in settle
ment Of international balances The law torni fS
the retirement of more than S3,coOso per NOUN
Of circulation. ostensibly prevent too sudden
contraction of the currency The real motive OF the
law at the time of its enactment was 20 pre s
government bonds. held TO secure circulation from
coming upon the market 49,, -. -.
These laws may have been justified when me
nation struggling for its life and compelled 70
raise necessary funds Now. with its bonds ea6tlIE
sought commanding the highest premiums and
ment bonds ever issued by any nation there i 80
provisions of law which serve only to add rigldty
TO currency system. You viii note thal ~ "eI
many the notes of other specie paEine bathS a.
counted reserve: not with US. ana yer d ma
tbsn greentact or I-nifed states bond. II has
6ret the oblfgation of the bank 10 pay; second Is
secured bv a government bond and. third- the
Government is pledged by law TO redeem II upon
presentation having in turn prior lien upon the
assets of the bank for reimbursement
My suggestion is that We proft by me eAptrieIVe
Of the Secrefarv of the treasury TO 10 banks
with saw NOT less than $1,000 capital and % per
surplus. emergency circulation IN an alou nv
exceeding 50 per cent of the capital stocK-Ihe
cent monthly he paid January and July.
paid The government issuing the circulation would
know the exact amount OF each bank outstanding
rjrcIIafion in excess of bond security. The per
-. 80 ,-o,,Id ;yd,,ca the retirement Of such
circulation at the earliest moment CONSISTENT Win
LIE of IsxzfI none, as now provided by law
Controller of the Currency should have she right
Ia Withhold circulation from any bank and also the
mower 10 direct the retirement of emergency Ctrcu-
iation time Let the government redeem
this emergency currency and have prior lien upon
assets to secure reimbursement. provided
by law. Instead OF setting apart a portion or the
certifcaes give prior lien upon all The statistical
history Of the national banks for thirty-eight years
proves conclusvely that such currency would be