The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-10-22
OUR MONEY.
Paper Prepared By Comptroller
of the Currency
And Read Before the American
Bankers Association.
MARKED IMPROVEMENT
Is Noted in the Country's Finan-
ciaI Situation.
Increase Since 1896 Was Never
Before Equaled.
IMPROVEMENT

sembl1ng this morning. President Cald-
well Hardy called the assemblage to
order and Rev. George c. Adams of the
First Congregational church offered a
prayer
After discussion on some minor
matters came the paper of William B.
Ridgley, comptroller of the currency,
his subject being THE Currency" He
said:
During the years of very active and
prosperous business which we have had
since the country began to recover
from the depression following the panic
of 1893, there has been a very marked
improvement in the fundamental con-
dition of our people and the amount
of both capital and wealth they have
produced and saved. This is especially
true among the farming and produc-
ing classes, who have not paid off
vast amount of debt but have accu-
mulated money and property of all
kinds to greater extent than ever
before. There has been a great in
crease in the volume of money in cir
culation among the people and there is
more money in the banks to their cred
it. Since 1896, there has been a great
er increase in the amount of money in
circulation than during any other like
period and about so per cent of this
increase has been in gold. We are con-
tinuing to add about eighty millions a
year to our old in circulation and about
one-half of all the currency in circula-
ton is gold. Our prosperity in business
has been based on the very best foun-
dalton. 1t has been the result of the
most legitimate causes, and forces, and
all these are not only still in oper-
alton, but give every evidence of con-
tinuance. As is always the case, how
ever in such times, this movement of
activity has been accompanied by
large amount of speculation, not only
in stocks, bonds and securities, but in
many other lines, and credits have be-
come more and more expanded. In
stock speculation and promotion es-
pecially we have gone too. fast, with
the inevitable result of a serious col
lapse, and such decline in prices
that people are becoming alarmed and
beginning to ask if this may not end
the whole movement of prosperity.
This causes doubt and increasing hes
itation in business circles. There is
also a demand for financial and cur
rency legislation, or governmental aid
in meeting the situation as it exists at
the present time While these import
ant questions are all more or less con-
nected and interviewer, the business
situation is not to any great extent
due to currency or financial causes, and
it is not to legislation we should look
for permanent relief If we had a bet
ter, and especially a more elastic, cur
rency system, we might nave peeh
SPARED from some disturbances. If the
surplus revenues of the government
had not been taken out of general cir
culation. there might not be so much
fear Of Il tight money market. But
on the other hand. if there has not been
the most absolute confidence in the
soundness of our currency, the dis
turbances in the markets for securi-
| ties of the past two years
would probably have spread very
much farther, and doubtless ended IN a
serious crisis with severe indus
trial and commercial depression.
If there had not been a large sur
plus revenue and plenty of money In
/ the United States treasury, the secre-
! tarv might not have been able to rem
der the assistance he has to the money
market on several occasions when ne
checked trouble due to causes entirely
apart from all questions of currencyapr
governmental finance 1t is true that
! there are some changes in our govern
ment financial system and paper cur
rency which are needed and winch
might be made to very great advant-
age. If they were in force, these changes
might now be very useful. but this sit
uation is not due to the lack of them
We should make such change in the
collection and disbursement of the ma
tlonaI revenues as will prevent the
! withdrawal of vast sums of money
from business just when most needed.
There is nothing SO sacred about gov
eminent funds that they should not be
handled through the banks like other
neopIe's funds so they would produce
| the least possible arrangement of bust
ness If any of the great corporations
should handle it's funds as the treasury
of the United States does and lock up
such vast sum of cash in its own
vaults legislation would Immediately
be demanded to stop it. We should at
once pass such legislation as is needed
to have the treasury stop it and let
! and hnEinASG alone much
possible. The less the government has
| to do with business and business with
the government, the better for both.
I am a thorough believer in currency
reform and agree with those VINO wish
to see the greenbacks retired, the silver
withdrawn down to the point which it is
practically subsidiary coinage or cur
rency, leaving nothing in circulation but
| gold as coin or certificates, and a real
bank note circulation by gold reserves
with such regulations for issue and re-
1 demption that it 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 mat
1 tiers, and / hope to see it some day ac-
! complished. This. however. is a thing
which can only be gradually done, and
/ has little or no practical bearing on the
present business situation. We have an
1 other very different system in force and
| it is with it we have to meet and cope
with our present problems. 1t has two
very great advantages. Our people are
used to it and have had no experience
with any other. Only the veterans in
| business remember anything different
It's greatest advantage is, however, its
absolute safety and soundness. Realize
what this has meant in the last year or
| two and especially in the last few
| months If there had been the slightest
| doubt or uncertainty in regard TO any
/ of our currency, our standard of value
or our national finances. the squalls We
have thus far stood so well would have
developed into a cyclone that would
have swept the whole country, leaving
ruin and disaster on every Size. 1t is
a very good system which resists such
strains. and there is great force IN the
argument that this is not the time for
! any very radical change if We shonld