The Washington herald., 1907-10-23

officials OF the Treasury Department
are manifestly anxious about the financial
situation In New York. No sooner had
the news reached them yesterday Of the
suspension of payment by the Knicker
booker Trust Company than Secretary
Cortelyou called his advisers 10 his Of
fee and discussed the situation at some
length.
Later in the day, the Secretary issued
a brief statement 10 the effect that he
was keeping In close touch with the sit
uation. At O'Clock he took the train
for New York to confer with financiers
there. with a view 90 relieving the crisis,
In so far as the Treasury is able 10 do SO.
Secretary Ccrtelyou declined 20 discuss
the situation for publication beyond the
public statement issued by him. but he
said he did not believe there should be
d general feeling OF alarm
Secretary COrteIyous statement was as
follows:
The Secretary Of the Treasury Is keep
ing IN close touch with business condi-
uons throughout the country. In the
matter Of public deposits. he win at al
times consult the needs OF legitimate
business interests, and viii not hesitate
10 deal promptly and adequately with
any situation that may arise"
Says Money Has Been Sent.
The rumor. persistent in Washington
and New York, that Secretary Cortelyou
had sent 100000 TO New York, 10 De
deposited in the banks there as a means
10 tide over the difficulties precipitatcd by
the suspension OF the Knickerbocker
Trust Company could not be verified
here yesterday. though II was not de-
MED al the Treasury.
Mr.. Cortelyou's decision 20 go 20 New
York was reached after he had conferred
with Comptroller Of the Currency Ridge
Is. United States Treasurer Treat. and
Assistant Secretary Of State Bacon. The
concern Of the administration in regard
10 the financial situation rests almost
solely on the ground that public conf
deuce becomes readily impaired, and the
effect Of such impairment is always
thing TO be dreaded in the business
world.
After Assistant Secretary Bacon re-
turned 20 the State Department from his
talk with Secretary C0rtelyou, he had q
talk with Secretary Root, who expressed
an interest in learning the latest ad-
vices from New York.
Much Available Cash.
1T Is believed that If the Secretary Of
the Treasury can do anything 70 relieve
the situation at the present tine. It will
be by making deposits OF public money in
the depOsitary banks so as 20 Offset. 20
a certain extent any Withdrawals that
may be made by timid depositors," said
Treasury official last night The
Treasury is in excellent condition 10 come /
10 the relief Of the money situation, for
there Is a large cash balance. despite
the heavy deposits that have been made
since last August.
Under Secretary Cortelyou's plan Of
deposltng public funds in the banks dur
ing the crop-moving season. there has
been disburSed a sum OF money supposed
20 aggregate approximately 50. 009- The
exact amount has not been made public,
but it is known 10 be not far from the
figure mentioned. II is probable that a
large amount VIII be deposited within the
next day or two. but that Will depend on
the result Of Secretary Cortelyou's visit
10 New York
THE available cash Treasury balance
to-day stood at S236 S56.7g Of which about
S1S5.0C0c)0 is on deposit in national banks.
This leaves a working balance in the
Treasury of about S53,0J0,O0"
Comptroller RIdReIy Confident.
Comptroller Of the Currency Ridgely,
in commenting upon the situation, said;
My advices from New York this
morning are reassuring. and the situation
there should now improve. The storm
has broken. and the damage is known
without any failures of the national
banks which have lately been criticised.
The clearing house confirms my reports
that these banks are all solvent, and is
standing by them.
Their debit balances at the clearing
house this morning are less than ex-
pected and I understand one bank paid
its balance without help. The national
banks Of the country generally are In
strong shape. and there is not the slight
est occasion for any alarm in regard TO
them. This is a time for cOolness and
prudence, not for alarm"