The Washington herald., 1907-10-24

Much less anxiety is now felt by Of
iieials Of the Treasury Department about
the financial situation than was the case
twenty-fOur hours ago.
Though the situation in New York was
clouded by that in Pittsburg, and mat
ters looked about as dark as they could
yesterday morning the developments OF
the day served 10 clear the air ConSid-
erably. and Treasury officials went home
last night assured that the worst was
over.
This feeling Of confidence was set forth
last night In a statement made public
by Comptroller Of the Currency RidgeIy,
as follows:
General Feeling of Confidence.
4 have talked by telephone with bank
ers in practically every large city in
reach of Washington by telephone, and
also with a number of bank examiners.
I hear Of no trouble whatever among
the banks or trust companies outside of
New York.
'The general feeling is that the situa-
ton is absolutely sound. and there need
be not the slightest apprehension about
the banks and trust companies Of the
country. Ny advices from New York are
that all the banks got through the day
better than they expected, and that there
IS now perfect concert of action, so that
the situation is well in hand.
There is every disposition among the
banks Of the reserve cities. as there
should be. TO leave their balances in New
York and the other central reserve cities,
and in this way TO avoid all the disturb
ance possible.
Confined to "A Few Concerns.
The trouble In New York has been due
to the condition Of a few concerns. and
also TO the fact that the prices of stocks
and securities, which form the basis Of
such a large proportion or New York City
loans, are now the lowest they have been
for many years, while among the country
banks just the opposite is the case. A
small proportion of their loans are based
on collateral security.
Mercantile, manufacturing. mining.
and agricultural operations are not only
now very active and the price of all
commodities high. but there is an active
demand for material and produce Of all
kinds, at prices which are very profitable
10 the producer.
I'VE are now just about at the maxi
mum demand for loans TO carry these
products in the country, but from now
on, within the next thirty to sixty DAYS.
they ought 10 be producing large amounts
of money. which viii relieve the banks
which have been carrying these loans.
and within sixty days the country banks
ought to be in an easy condition"
Deposits Made In PittsburE.
Although Secretary Cortelyou was in
New York yesterday, he was in frequent
communication with other Treasury Off
cials here by long distance telephone. and
such steps as he has taken to relieve the
financial situation were communicated 10
Acting Secretary Edwards II is under
stood that deposits Of public money in
national denOsitaries were authorized. but
the extent of these deposits was not made
known, OF the places where they we're
made. An exception was made in the
case Of Pittsburg however. for IL was
admitted yesterday afternoon that on ac-
count of the distressing situation in that
city. ii large deposit of public funds had
had been authorized i'm the Pittsburg
banks. The extent Of the deposits was
kept secret
The decision 10 aid Pittsburg banks Was
reached after Senator Knox. of PennsyI-
vania. had gone to the Treasury Depart
meut He talked with Secretary COrtelyou
over the telephone, and the secretary
consented 10 authorize a deposit Of funds
al f-r
Eistant Secretary Edwards
ScrutinizinE Security Bonds.
There was an informal conference, yes
terday between Assistant Secretlrv Ed
wards Comptroller Of the Currency
Ridgely. and Treasurer Treat in regard
TO the character of bonds TO be accepted
as security for government deposits.
These officers Of the Treasury form d
board TO consider the acceptabnity Of Sc
curities for that purpose. and there was
nothing particularly significant in the
meeting. except that extra care Will he
exercised in the examination of bonds
that may be offered as a basis of de-
posits. This is because Of the almost
general depreciation in the value Of Sc
CuTities
The Comptroller Of the Currency has in
command "a potent instrument for the re-
lief Of the money market. 1t IS the call
for the condition of national banks. There
is no sign that one is contemplated. but
il is realized that it may come at any
moment and such calls always put
money into circulation.
The last call was for the condition Of
banks for August D.
Cali Expected Soon.
If the usual custom is followed. the
next call Will he for some day in Novem-
Der. Calls seldom, if ever. exceed five a
year, the legal minimum There have
been four calls made thus far If the
next should be for from the 10th to the
10Th Of October, the greater would be the
relief afforded.
Banks which have been holding money
in reserve for the showing Of their fnan-
cial condition viii be enabled to release
much OF it upon the issuance Of the cali
and rest serene in the knowledge that in
all probability they Will not have 10 face
another call this year