New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-30
REVENUE AND BANKS.
Dir. Ridgely You'd Make CoIlec-
tiOus LorgeIu in Credits.

Detroit May 29.-william Barrett Ridgely,
Controller of the Currency, spoke Of The Rela-
tons OF the Treasury with the National Banks
before the Detroit Bankers Club here tonight.
He said, in part:
Under the laws which have been in force for
many years the receipts from internal revenue
have been deposited in national bank deposit
taries daily as received. but have soon been
taken out from the banks into the Treasury,
only to be redeposited in emergencies. The act
of March 4. 1907 makes possible the de-
post of all the government receipts in the banks.
and in this way both internal revenue and the
customs receipts can be left in circulation.
1t Is possible under the law and 1 think
highly desirable, 10 go one step further than
this and collect the revenue mainly in bank
credits, without the use of a great deal of the
actual cash at all, and thus avoid the necessity
of ever Withdrawing single dollar from actual
circulation until needed; or. ii can be promptly
paid out for expenses of the government. This
be done by allowing the collectors of both
classes TO receive. in payment OF customs and
internal revenue, certificates of deposits on
banks. which are designated depositaries Of the
United States
While in any depositary bank or being trans
ferred from one to another the funds would he
protected by deposits OF bonds and he ahsO
lutey safe though they were in the Treasury
vaults. Whatever Encouragement there might be
between bank and bank and city and city, there
would be no change whatever in the total
amount of money in circulation, and therefore
there would be the least possible financial dis
turbance as the result of the process Of collec-
ton Of its revenues by the government
The Secretary OF the Treasury would have a
daily report of balances with the different
banks. and could daily make such a redistribu-
ton OF the funds as is necessary for the public
service. AS far possible the disbursements
of the government should be made by checks
against these deposits. thus still continuing TO
leave the money in circulation.
As the law stands. however, and possibly
until a system could he still further perfected.
the bulk of the actual disbursements of the
government would have to be made by war
rants drawn the Treasury. The available
only be the money actually in the vaults of the
Treasury and the sub-treasureS. but the money
thus placed 10 its credit in the different depoSi
tary banks.
1t would be highly advisable, in my opinion.
means of minimizing the disturbance Of
the money market and business affairs gem
orally. TO keep the funds of the government as
withdraw them TO the Treasury recoup the
funds there for expenditures after they have
actually been made This would to the greatest
extent possible take the Treasury out OF the
field as disturbing element. far as its in
ternal revenue and customs collections
cerned.
Let the Treasury keep clear of the money
market. Business men then would know what
they could expect and make their calculations
accordingly. This would have most salutary
effect. for when people realized that the Treas
ury Department would not rush to their aid
money became tight there would he
less dependence such relief. and a far
money market. 1t may he wise to do this
once. but this is the correct principle. and
one which should he ultimately applied This
may be considered radical, but il is right and il
Is better TO be radically right than Conserva-
lively wrong