The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-11-22
ECKELS DISCUSSES
CURRENCY NEEDS
Former Controller Of Currency
Tells Bankers He Favors Con- I
ii vertible Bank Issues,

Omaha, Noy. 22.-About 800 mem.
bers are in attendance at the conven.
ton Of the Nebraska Bankers associa-
ton, which opened here yesterday. The
principal address Of the convention was
fsssFed prsyg sdstesday fy James II
National bank Of Chicago and control
Ter of the currency under President
Cleveland. Mr.. Eekelsaspoke in part
as follows: - EEE3;zseFs
1t is happy circnmstan that the
need Of a more responsive. character of
bank note. Issue and, a better.adapted
relation Of government finance to daily
business undertakings demands atten-
ton at. a time when the prosperity of
the country is undoubted. The de-
mand for etter.sthings springs neither
from panic nor threatened distress. It
is to the interestsof the public at large,
more than the banker in particular,
that banks should increase in strength,
become far-reaching in influence and
more capable of granting, on safe and
conservative lines, the creditgWhich is
SO much an essential necessitygin: the
maintenance of the complex machinery
OF worldwide as:weH as saslocal ex-
| change. " ~ i
:, Central Bank Impossible.
"a great central bank is an impossi-
bility in this country, where political
issues always prevail and where indi-
vlduality will lot surrender to concen-
trated power in banking, no matter
how carefully such power is dealt with.
The legislation that remedies present
defects must commend itself as a prac-
teal thing and the country can better
afford to take the nearest approach to
the. best thing. than to wait longer for
legislation without defects. s.-'~..,,
The commission which sat at Wash
1ngton under authority of the cham
bers Of commerce and the American
ton. which will emasculate the sub
treasury system and place the banking
business Of the government upon the
same common sense lines as is that Of
the banking of the marisof everyday
affairs OF every state, county and
municipality. -.
The government method of banking
It's receipts OF revenues is an irrational
method which, if followed by the indi-
vidual, would spread disaster every
where and make daily business impos-
slble. 1t converts the dollar of activ-
lty into the dollar of idleness and takes
out of trade the force essential to a
continuance of the flow of business.
If on revenues deposited in the
banks by the secretary of the treasury
interest is paid, there can be no COM
/ plaintr about such deposits nor charge
OF governmental favoritism. It, too,
will put al end to the continual ap-
peal to the secretary to aid the money
situation, for day by day the govern
ment will bank as other banks and all
will know what the conditions are, and
not dwell in continuing expectancy of
relief being granted from Washington.
Note Issue Plan.
| "The commission on behalf of the
| commercial and banking interests Of
the country will ask congress to enact
a law charging the note issuing func-
tlons of national banks by granting
them the right under conservative re-
| strictions to put forth promissory notes
| of small denominations without spe-
! cifc deposit of assets to secure the
> -. It must not be assumed that such
authority is given such notes thus
creating new liabilities for the banks,
that the banker is going to become
reckless with his own property He
at least will retain some sense of duty
towards his stockholders and be pos
sessed of some degree of enlightened
selfshness as regards his own inter-
notes away for nothing. He will sell
them as the merchant sells his obliga-
lions, and he will issue them against
actual existing values and he will re-
deem them on presentation, just as the
merchant does. They will have held
against them a reserve as adequate as
the bank deposits liability.
| Leading dealers handle the leading
| r1,lhor oh Cob,,l1o Clo1-o