New-York tribune., 1907-12-17
URGES CENTRAL BANK.
SUPPORTED BY RIDGEL1.
Controller also Recommends Emer-
gency Currency Measure.

preventive for the recurrence of financial Strln-
gency advocated by William r. Ridgely. Controller
of the Currency. his annual report. made public
to-day.
Meanwhile, ne urges that Congress provide for
some emergency issue of currency. either through
the clearing houses or some other established 6nsn-
Cal machinery. in order meet present conditions
Controller Ridgely goes at length into the details
the financial crisis of the last few months using
the lessons taught therein to support his recon-
mendation for central bank His report says. IN
part
Certainly since long ago as the date OF , ths
Of warning indications of financial troubles IS ana 30
possible business disaster For at ieast r, zen w
twelve years there has been an era OF ADVANCING
prices and great industrial, commercial and spec
Creiits have increa sed and multiplied until the
limit has been reached in the smo,'nf & or reSee I1
money on which they must be based FOR AT aaE Las
three years. however. it has oeen more
and more evident that there must soon ne d
universal crisis in financial and commercial AFFAIRS
by any means confined TO the United States, Crises
of more or less severity have arisen in several
As is always the case when there is a demand
4 f6c Fer + Ts months tef s has been
steady decline @ in M stock T sgef pet BONUS a%e
dropped lower and lower in price. The difficulty
erai Yea years many Of the railways have had to
raise money for their % sxpenduTes pend nnss ana
stead of regular bond issues the rates OF iaseres'
issue being harder 10 place. Merchants and manu-
facturers IF the highest standing and credit have
found 1t more and more difficult 20 secure or re-
new loans and the rates have risen steadily for
months past.
NEW YORK's FINANCIAL TROUBLES
With such conditions existing We approached the
autumn crop moving period when there is aIways
currency shipments and withdrawals OF balances
II there % wefs good reason to hope that there might
be than gradual liquidation which might
be conducted in detail; one interest or me az a
time beginning with the stock market. and that,
The there might d be % adai6n IN Of e cred
its. It would not develop into bank or com
The collapse OF highly speculative corner in
stocks, dealt in on the curb in New iork-not
even listed on any regular exchange-bTought sis-
picion upon an old well established national bank
Although examinatiOns by the national & bank S es-
arniners and the New York Gearing douse com com;
mittee showed this bank to be entirely solvent,
with its large capital and considerable surplus
Sun beyond question intact pqpnc interest de, Raa
oped in New York City on 3 number OF ,56sT 96heT
banks between which and the bank first under
attack there was known to be community of own
ership and management. The national banks of
New York City were all found 10 be solvent by
Ported f@g by the % ciearnF House banks none failed
cdpnanias wer NOT in such good condition and
many OF them, not being members OF the Clearing
prepared Tor Tn Trst TpmnanY With
81 f 600 Of canitai and ss7ooo OF deposits closed
its doors on October 22i and this was followed by
and trust companies. During October and Novem-
ber ten state banks and trust companies two OF
Nty New York CITY and Vicinity There were long and
d only P kept Sn fr" Sre by the support Of the
other trust companies and the Clearing House
banks. One national bank the First National
Bank of Brooklyn. which Clearing House
agent for. two large trust companies in BROOKLYN
on october 25 in order to avoid the responsibility
in the hands OF a receiver
on October % the New York Clearing House
fo 9aks s 6 Re 20 Of baances and To t
nS5 an the In & the New 9 SorE TO
followed by those of the other central and
to precipitate a serious bank crisis and a
famine Of currency for payrolls and other neces-
were at once thrown into, disorder. and the means
suspended Money has been withdrawn and boarded
by individuals, corporations and even more. per-
once drew and held ali the mony Of any kind they
could obtain. often really in larger sums than
ALARM AMONG BANKS.
1t has been one of the peculiar features of the
situation that there has actually been OF a
panic among the banks themselves than there has
fearful i'''' as 10 what might develop and fnding
their usual reserve deposits only partially availa
BILE. If available at all, they have been compelled
self-protection TO gather from every source all
oh 5he 10 mG4eBB Bv eT ng sGo wheTeer ant It is is
sible and satisfying their customers with the small
able how patiently and with what forbearance the
people in the business community generally have
horne with the situation and helped the banks TO
deal with the emergency With the exception Of
runs in other places. there has really been
pr:sngly little excitement or uneasiness among
The greatest hardship TO business generally has
been the derang4 ment Of the machinery for MAX
he seen this has interfered with every kind and
business operations of every kind. Factories have
suensnded svorkmen have been thrown out of M
ploEmen' n feen greatly retarded and inter{ered
with and exports have fallen off at time of the !
oother result has been reductiotn OF the volume
of the foreign credits available lust at the time
o. r6 6oia Conditions which panic Of oc-
l,re Of a few individual banks They were not due
W va tho lack Of confidence of the people IN the
80 hut more lack Of confidence of the
ranks in themselves. and their reserves. Banks
nav, han dorn and in consequence IL has broken
down and the reserTee deposiss pave been cnlv
pa. pa e,,fcient currenCr could h" sUrpled To meet
The demand. and as @ they al, . made The demand at
res,,it has been currency . y, fsI,'sne ssa
.,a roserve system that the derosits or
The hanks he kent in9 bark whore they are
snreis srancv .n system some element elasticity so
that when there comes sudden demand for chr
rnncv il can he supnlied In hanknotes. without dc
r1oti,- the supply Of reserve money.
SEES REMEDY IN CENTRAL BANK
,,oso tvo most desirable changes can best be az
eomnlished-in fact, they can only be satisfactorily
accompshed-throus the ,Hu esianoshment W @ by the
serve This is the system which has been adopted
@ anu @I,nerral countries Of Europe and is the
LIT Gives the surest promise OF satisfactory
% ton IN n, mt Two great problems banking svs-
tenn hut il would also provide me nlachinery for
tione 10 the banks with the least disturbance
The chef weakness of our present national banking
s.er &c the provision in regard to reserve deposits
which piles reserxe cities H without reauirnr s"f
If