Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-12-19
RIDGELY ON FINANCE
CONTROLLER OF CURRENCY AD-
DRESSES BANKERS.
Makes Plea for Revision of the Cur
rency Laws and Retirement
of Greenbacks.

Whi iDeiIet ftIueSiy, Coutieiieh AtuS
currency: President Woodrow Wilson of
Princeton University, the Rev. DR.. Robert
S. Macarthur. Major Gen. Aana R. Chaffee
and John s. Wise were the principal speak
ers at the annual banquet of the bankers
of the city Of New York. comprising group
eight Of the New York State Bankers As
ISOLATION, given at the Waldorf-Astoria last
night. Five hundred members and guests
of the association were present.
Controller Ridgelys spoke on Elasticity
in the Currency saying in part:
ANY complete sand satisfactory solution
of our present currency problems should in
clude some plan for the retirement Of the
legal tenders. Eanylmen who have given
this question much study and thought,
among them some OF the ablest and most
influential leaders fIE the currency reform
movement, go SO far.aS to say they are not
In favor of and will never support any
measure for change in the currency which
does not provide that the legal tenders shall
be retired While I firmly believe the cur
rency would be greatly improved by this
retirement and especially that 1t would
make place for bank notes which would
be much better for our people In every
way, l do not agree with this extreme view
1 believe the bank note circulation can be
greatly improved by few quite conserya-
tive changes which will add to its elias
ITCHY, or rather introduce some elasticity
where there is now practically none. Ihese
changes are not new suggestions; they nave
been considered and discussed for several
years. believe a strong effort to have
them adopted should now be made by all
those in favor of currency reform, and
urge every man who agrees that these
changes will improve the currency to give
his support to the effort even II what is
proposed does not accomplish all he wishes
to see done.
'aThe act of 1880 contains prohibition of
Of than
national bank notes in any calendar month.
This prohibition has not only prevented the
contraction Of the currency when the notes
have become redundant but also prevents
expansion when it is needed. Owing to this
difficulty of retiring their notes many banks
refuse to increase their circulation when
otherwise they would do so. Whatever ne
cessity there ever was for this restriction
on retirement has long since ceased to exist,
and. as recommended by the chamber OF
commerce report and the report OF the con-
troller of the currency for 1902, the restric-
ton should be removed If there is nothing
else done in regard to the currency, this
should be done at once.
1.-The prime requisite for an elastic cur
rency Is frequent redemption and freedom
of retirement. To have proper and true
elasticity, contractibility is as necessary as
eXpansibility. 1t is shown by the experience
of all countries and systems of currency
that the main reliance for contraction
should be redemption 1t is more reliable
through the operation of proper system
of redemption can any currency be made
automatic and responsive to the demands
of business.
1T is going to be extremely difficult to
get anything done in the way of currency
legislation. To accomplish anything there
must be united and strong effort. There
should be no pride of opinion or authorship
in these matters and desire to have
something new. Stability and soundness
are the first requisite for financial propo-
stion-novelty is the last.
Let us follow the example of the cham
Der of commerce, choose few measures
upon which there is a good prospect of an
agreement, and all work together for those
things we can agree upon. In THIS way
only we hope to improve our banking
and financial systems so that we can feel
they are the proper basis for our splendid
agricultural, industrial and transportation
systems and able to give them the sup
port they require and are entitled to in the
great career We are surely destined to fol-
low in the century opening before us.
I'VE should no longer rest under such
reflection on the intelligence and efficiency
Of our financial system, but correct as
promptly as possible the mistakes which
have been made. Our currency laws are
patchwork from beginning to end OF
measures passed from the emergency Of a
civil war, concessions to greenback flatsm
free silver and bime tailism, all compromises
with prejudice and ignorance They can be
and must be altered if our progress in the
trade of the world is to have the assistance
of our financial system and not continue to
he made in spite of it. This is the most
important question for the consideration or
your bankers associations. 1t is up to you
to act No other equal number of men have
as much at stake and as great responsibility
in this matter as the members of the New
York State Bankers association.
'The Relation of the University to Bust
ness" was the subject Of President Will
sons address. Dr. Macarthur spoke on
prny COnSnrVatOrS
of civilizations" General Chaffee on Elk
perience with Bank and Bankers" and Mr..
Wise on rSomethng Which Bankers Don't
Know"