The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1902-12-19
URGENT NEED OF ELASTICITY
UNITED STATES COMPTROLLER
SPEAKS ON THE CURRENCY.

Addresses New York city Bankers
Association-The One Great Objection
to Present system, the Lack of Elastic
ity-If This Defe CT Can be Remedied a
Good Currency yviIl Result.
New York, Dec. 1S.-William Barret
Ridgely, comptroller of the currency;
President Woodrow Wilson of Princeton
university, the Rev. DR.. Robert S. Nc
Arthur, Major General Adna r. Chat
fee and John S. Wise were the principal
speakers at the annual banquet of the
New York City Bankers association
given at the Waldorf-Astori tonight.
Other prominent persons among the 500
members and guests of the association
present were: James Stillman, Arch
bishop John NJ Farley, Frederick D.
Kilburn, Jacob H. Schiff, E. r. L. Gould,
J. Sloat Fassett, Morris K. Jesup, Will
liam Scherer and Stephen M Griswold.
Comptroller Ridgely, the speaker OF
the evening, spoke OH Elasticity in the
Currency" saying in part:
The national banking system will
complete the fortieth year of it's exis-
tence on February 25, 1908. The one
great objection which can be fairly
made to the system is the lack of elas-
ticity in the currency which is issued.
If this defect can be remedied without
impairing the safety of the notes, we
will have good currency we'll adapted
to the needs of the country.
Since they were first issued there has
been a contest between the legal tender
and National bank notes. AS is always
the case, the worse money has driven
out the better The legal tender notes
which are in no way as good currency
as the national bank notes have check
ed the growth of proper bank circula-
ton. Among the many band effects Of
these legal tender notes on our curren-
cy and financial matters, this is by no
means the least. 1t is unfortunate
that the legal tenders were ever issued.
It was with great reluctance that any
one consented to them, and their issue
was only agreed to as temporary or
emergency mea sure with the expecta-
ton, if not positive agreement, that they
were to be replaced as soon as possi-
BILE by the national bank notes.
Any complete and satisfactory solu-
ton of our present currency problems
should include some plan for the retire.
ment of the legal tenders. 1 believe
the bank note circulation can be great
Iy improved by a few quite conservative
changes which will add to its elasticity,
or rather introduce some elasticity
where there is now practically none,
and I urge every man who agrees that
these changes will improve the. curren-
cy to give his support to the effort, even
if what is proposed does not accomplish
all he wishes to see done.
The act of 1882 contains a prohibition
of the retirement of more than $4,000 900
of national bank notes in any calendar
month. This prohibition has not only
prevented the contraction of the cur
rency when the notes have become re-
dundant, but also prevents expansion
when it is needed. Owing to this diff
cult of retiring their notes, many banks
refuse to increase their circulation when
otherwise they would do so. Whatever
necessity there ever was for this restric-
ton on retirement has long since ceased
to exist, and the restriction should be
removed. If there is nothing else done
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