Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-31
IS MARS HAb|TAbLE2 Time To Be CHEERFUL
Query Answered in Lecture by Controller Rdgey Discusses
Or. David Todd. the Business Outlook.
GIVES BASIS OF HIS BELIEF MILLS ARE RESUMNG
Argues Presence of Atmosphere Many
and Water Planet Confidence.
HIS SUBSEQUENT CONCLUSIONS PRUDENCE OF THE BANKS
Lfep-why Than Was Necessary.
Huma F.. Ryans
Many Indications Of a Revival Of
Confidence.
PRUDENCE OF THE BANKS
Have Protected Their Deposits More
Than Was Necessary.
T. F. Ryan's Title.
BY WILLIAM z. CUKrIs.

Written for The Star ana the Chicago Record
| Herald.
Yes, We can AFFORD to be cheerful at
| the beginning of the new year." said
Mr.. Rfdgely. controller Of the currency.
but not too cheerful. It won't do to
brag until We are entirely out Of the
woods. but there are many reasons for
satisfaction with the financial situation
and the outlook. Financial affairs are
resuming normal conditions all over the
country. The premium on currency
| which at one time has been as high as
per cent. has disappeared. The banks
are cashing checks without hesitation,
and are furnishing currency for pay
rolls. Checks and drafts are now avail
able for renittances, and people don't
have to use money orders any more
Factories and mills are resuming bust
ness. presumably upon orders. They
would not start up again unless they had
something to work on. Lots of orders
that were Cancelled are being renewed.
and that shows a revival Of confidence"
How many banks failed during the
panic?"
sixteen failed; two at Eagle Lake,
Texas. and at Frederick, Okla. have al
ready resumed. and the Merchants Ma
tional at Portland, Ore, will resume IN
few days. leaving only thirteen Grip
pied ones as compared with $50 In the
panic Of 1893, nfty-four Of which never
But the recent panic was very diner-
ent from that Of 1885," continued Mr..
Ridgely. I'm those days banker In
Kansas hung out a sign In his window
reading:
This bank has suspended, but it is not
busted. The community is busted. and
when the community resumes business
the bank will open It's doors. -
Conditions were reversed In the recent
furry The banks were more frightened
than the community, and when they re-
sumo business the public will recover
their confidence. The banks are really
stronger than they were before the psnis'
which have been drawn out and hidden
in stockings and tin boxes by frightened
depositors, and the loans and 0fscounts
have decreased $4,000. 900 throughout the
country, which means that 80 many loans
have been called. which Is a compare
lively smah amount, under the circum-
stances. The bills payable have increased
81, 600, 600, which represents the amount
that the strong banks have given to sup
port the weak ones, and the govern
n1ent deposits have increased S7o.o0o.ooo
which represents the amount OF assist
ance given by the United States Treasury
in the emergency. The circulation OF the
national banks has increased $4S,Ooo,Voo
since the panic began.
1.-The general significance Of these fig
ures indicates certain amount OF weak
ness. but remarkably little. considering
the severity Of conditions
1.-THE most significant thing is that the
central reserve cities have paid out cur
rency until their reserve has been re-
duced to 22.20 per cent Of their deposits
weak banks and satisfy frightened de-
positors. In August the reserves were
26 So per cent OF the deposits, which was
about normal. December the reserve In
Of the deposits, which is slightly below
the legal requirement. And the total cash
available by all the national banks IN the
United States was 24.72 per cent Of their
deposits, which is about normal.
Prudence Of the Banks.
This was the result Of sitting on the
lid The banks have protected their de-
posits more than was necessary. 1t was
a little hard on people who needed cur
rency, but it kept the panic from spread
ing. There are thirteen billions OF de-
posits in our banks. and only little over
one billion Of actual money, said Mr..
credit. and 1t was to protect that credit
that the banks took the action they did
There is a total of $3115, 100000 Of coin
and other money in the United states.
which Is an increase OF $45.70OftW during
the last year. OF the total stock OF money
In the country. II per cent Is held In the
Treasury of the United States as assets.
35.51 per cent Is In national banks. and
53. 20 per cent Is elsewhere. The stock OF
money in the United States has increased
81. 315. 100000 during the last ten years.
The amount per capita Of money In circu-
lation. not including that In the Treasury.
is $50 %, an increase from $21 10 during
the last ten years.
MANY Of the banks In the reserve cit
les have available cash far In excess OF
their requirements. The most noticeable
instance of this is. In Galveston. where
1887 per cent in their deposits Is In their
vaults. an Increase Of from 31.72 per cent
in August last. San Antonio has 80. 10 per
cent of her deposits available; Indianap-
oils has 37.23 per cent: Wichita has 37.40.
The banks Of Portland. Greg, are very
strong also and have 36.49 per cent. Of
their deposits available.
Legal Reserve Increased.
1.-The other cities whose banks have in
creased their legal reserve during the
panic are as follows: ,..
Percenta ees Of Deposits Available.