The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-11-18
The Presidents Action.

President Roosevelt has done just
what everybody ought to have
known he would do. He has risen
to the situation, taken the financial
furry in hand, and set about to
shake the life out of it.
This furry could easily have be-
come a panic, but viii not. 1t might
have been followed by a long and
serious depression, but it win not.
And the reason = that the National
Government has shown its determi-
nation to use every ounce of its inn
mense power to prevent such re-
suits.
Inadequacy of the money supply
was the cause Of the trouble. That
viii be remedied by the measures
announced from the Treasury, sup
plemented just as soon as possible
by the relief legislation which Con-
gress cannot hold back. As to the
loss Of confidence and the tendency
to hoard, there never was reason
for these. The business Of the
country is simply too big Cor its
money supply. There are good
crops, industry is active. carriers
have more freight than they can
handle.
President Roosevelt's action is
thoroughly characteristics He is
going to meet the situation, TO head
of trouble, TO get the country back
TO normal conditions and normal at
titudes of mind. In the process of
doing it he is going to use his Of
fetal power and his tremendous per-
sonal influence with the country to
the very utmost.
The word of counsel spoken in the
Presidents letter to Secretary Cor
telyou is worth only less than the
issue of securities that IS TO be
made. Here is the substance of the
national business situation, so
squarely put that it win not fail of
effect:
What is most needed just at
present is that our citizens should
realize how fundamentally sound
business conditions in this country
are, and how absurd it is to permit
themselves to get into a panic and
create a stringeney by boarding
their savings, instead of trusting
perfectly sound banks. There is no
particle of risk involved in letting
business take its natural course, and
the people can help themselves and
the country most by putting back
into active circulation the money
they are boarding. The banks and
trust companies are solvent. There
is more currency in the country to-
day than there was a month ago,
when the supply was ample. Fifty
five million dollars in gold has been
imported, and the Government has
deposited another S6OOOO,OOO. These
are facts; and appeal to the public
to cooperate with US in restoring
normal business conditions. The
Government will see that the people
do not suffer, if only the people
VIII act in a normal way.
Crops are good and business con-
ditions are sound, and we should
put the money we have into circula-
ton, in order to meet the needs of
our Astounding prosperity. There is
no analogy at all with the way
things were in 1893. On November
30 OF that year there was in the
Treasury but s161. 100000 in gold.
On November Is Of this year there
was in the Treasury S9o4,oOo,OoO in
gold. Ten years ago the circulation
per capita was s23.23. It is
now s33.2s. All that our
people have to do now IS to go
ahead with their normal business in
a normal fashion, and the whole
difficulty disappears.
The beginning of the end of the
troubles is here. Confidence, the re-
sumption of cash payments by
banks which have suspended them,
the return of gold from deposit
vaults to circulation, and finally leg
islative measures to guarantee
against such financial avulsions in
future-these are results confidently
to be expected.