The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-10-10
SATURDAY, OCTOBER 10. 1909.
MR.. ECKELS ON CURRENCY.

MR.. ECKELS ON CURRENCY.
In yesterdays paper we made mention
of an article in the October number of
the North American Review by President
Nash, of tho Corn Exchange Bank III
New York, in which he declared that
the present currency system was ade-
quatc; the only reform needed being
greater facility on the part of the treas
ury in putting into circulation funds col
lected for taxes.
In the same number of this magazine
Is an article on the same subject by Mr.
James c. Eckels, president of the Ma
tional Bank of Chicago, and formerly
Comptroller of the United States cur
rency. Mr.. Eckels contends that our
system Is not. only defective but anti
quated and inadequate. and needs reform
ing altogether. He thinks that there is
need of emasculating, if not wholly abol-
ishing. the sub-treasury. lie insists that
the government must carry on It's busl-
ness according to the accepted rules OF
business. and in dealing with the banks
not treat them DIS oICtlOSSlldEy lHSlilullOliSb
but as business institutions carried on for
profit. He thinks 1t is absurd for the
government to require banks to use
U.Ited States bontu only, as a se-arity
for government deposits. and he cmpha-
sizes the harsh and unreasonable re-
strictons thrown around the national
banks in the issue of notes, He points out
the absurdity of Juggling In the ques-
ton OF patriotism as applied by the
government to the banks. and says that
If the government expects to do business
with the banks, It should do It on bust
ness principles 'The remedy for the
embarrassing position, in which, each
recurring year. the business of the coun-
try finds itself" says he, "is not in
whining, threatening or talking mere SEN
timent about the false idea of what con-
stitutes patriotism. 1t lies In courageous
ly recognizing the defects which are
patent and correcting them. He adds
that recognition Of the prominent posi-
ton of the bank as factor in BUSINESS
by making the government its customer.
and the practical elimination of the sub
treasury as a disturbing factor should
be followed by legislation which would
give proper vitality to the note issuing
function. of which it ought to be pos
sessed "There is but one way to correct
this imposition of beneficial power upon
the part Of the banks in the exercise Of
their note Issuing function" concludes
Mr.. Eckels, land that Is to put the
banks gradually in possession Of the right
OF issuing notes against their CONNER
cial assets"
Mr.. Eckels does not believe in radical
measures in this direction; but, he says.
that we'll safe guarded as to speedy
redemption al convenient points and with
a general safety fund to guarantee re-
demption Immediately upon the failure of
any bank, these issues would be as safe
as need be in the careful conduct of bust
ness. He Is not afraid Of initiation under
this system, for he contends that bank
notes will be issued only when needed
and loaned as safely and conseryutlvely
as they are to-day; that they will be is
sued when existing values and business
require them. and viii come in when
the need that calls them into being has
passed away,
The government does not undertake to
interfere with other branches of bust
ness, to regulate the supply and demand
for ordinary commodities. but II does I'M