The Washington times., 1903-10-22
Country Has Stood the
Slump in Stock Prices
Well, He Says.
HIS ADDRESS TO BANKERS
Comptroller Believes in Cur
rency Reform, and Wishes
GreenbaCkS Retired.

SAN FRANCISCO. Cal, Oct 22.-The
Hon. William 3. Ridgely. Comptroller of
the, Currency, addressed the bankers
convention here today on The Busi-
ness Situation and the Currency" He
said in part:
During the years of active and pros
porous business which we have had
since the country began to recover. from
the depression following the panic Of
1893. there has been a marked improve
ment in the fundamental condition of
our people, and the amount of both cap
ital and wealth they have produced and
saved. This is especially true among
the farming and producing classes. who
have not only paid off a vast amount
OF debt. but have accumulated money
and property OF all kinds, to a greater
extent than ever before.
Increase in Gold.
There has been great increase in
the volume Of money In circulation
= among the people. and there is more
money in the banks to their credit
Since 1896 there has been greater in
crease in the amount of money in cir
culation than during any other like
period. and about so per cent of this in
crease has been in gold. We are con-
tinuing 10 add about eighty millions a
year to our gold in circulation and
about one-half of all the currency in
circulation Is sold. Our prosperity in
business has been based on the best
foundation. 1t has been the result Of
the most legitimate causes and forces.
and all these are not only still in opera
tion. but give every evidence OF con-
tinuance.'
Turning TO the stock market and kin
dred interests. the Comptroller said that
the truth is that the country has gone
too fast in speculation and promotion.
and the recent depreciation in values
has followed as a logical sequence. Con-
tinuing. Mr.. Ridgely said.
Currency Reform.
II am a thorough believer in a cur
rency reform and agree with those who
wish to see the greenbacks retired. the
silver withdrawn down to the point
where II is practically subsidiary coin
age or currency, leaving nothing in
circulation but gold. as coin or certi6-
Gates. and a real bank note circulation
by gold reserves with such regulations
Tor issue and redemption that II would
be matter OF Indifference to the banks
whether their credits remained with
Them as deposits or were circulating as
notes.
This is the only true solution of our
currency matters. and hope 10 see it
some day accomplished This. however.
Is thing which can only be gradually
done, and has little or no practical
bearing on the present business situa-
ton"
Banks Not Impaired.
Turning again 20 the late depreciation
In values. he said there have been re-
peated slumps in prices Of stocks since
May. 1901, and consequent collapses and
failures, but the country has stood II
all well, and this is a good sign that il
win continue to stand It,
Many think that the decrease in the
percentage OF reserves in banks Is rea-
son FOR belief that things are going to
the bad. but" said Mr. Ridgely, the
banks have not been impaired in the
least by the late drafts on them, for
the money lost I'm the last few months
has been but a portion of the profits
made on the rise previously. The slump.
therefore. has not affected the banks
materially.
In conclusion, Mr.. Ridgely said:
THE course Of business today largely
banks continue TO act wisely and con-
servatively. as they have, they can
avert anything like serious trouble and
keep the country in shape for con-
unuance OF prosperous times"