Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-20
BETTER SAYS R|OCELY
Treasury Controller Notes I'M
provement in West.
MONEY is STILL TIGHT
West Expects Recession in Business
Activity,
BUT ISN'T MUCH SCARED
Banking Position Unusually Sound
Just Now, With Few Institutions
on the Anxious" List.

Although the money market is tight SEN
timent among bankers and business men III
the west is decidedly more hopeful. accord
ing to Controller of the Treasury RidseIy
In a statement made to the Washington
correspondent of the Wall Street Journal
as published this morning, Mr.. RidSely is
quoted saying:
Il have been west for short trips four
times within the last few weeks. l have
Just returned from Chicago. l have found
the sentiment among the bankers and busl-
ness men at ali times more hopeful in the
west than it has been in New York or any
of the eastern cities. On my last trip
found an Improvement in the sentiment
over what l had previously FOUND mere
is no DENYING the fact that the money mar
ket is very decidedly tight, and 1t is more
a matter of tightness of time money IMAM
it is OF call money. This is having more
effect upon general business IMAM uSualls
results from any demand which IS more
confined to the call money market: though
il may result in running up the can money
rates in New York to very high figures
The Worst Over Soon.
II find western bankers and business men
generally expect and are prepared for.
considerable recession in business activity,
although most of them say that they do
not vet see results in their own trade. L
think the improved feeling which unioupt-
eddy ex SIS today. compared with thirty
or sixty days ago, is partly due 10 the l'ct
that This recession is not YET making ltsSli
very manifest. and partly to the feellns L
heard often expressed, that having gone
through what is really a stock panic, ana
the severe stock depression of this summer,
with so tile acute disturbance and 50 few
important failures. the country VII De
able TO get along easily for a few weeks
more. until the worst of the crop moving
demand is over.
The course pursued by the Secretary of
the Treasury, Mr.. Cortelyou, and the way
he is handling the question of government
deposits has also had reassuring effect
on the financial tuation. / heard nothing
but the most complimentary opinions IN
regard to the Secrctarys action. This is
not confined to the banking business. but
the people in all lines feel that the Secre-
tary has the situation firmly in hand, and
that h method of handling It, which is
entirely his own, and in some respects
departure from what has been the practice
heretofore, will result in the greatest pos
sible benefit that can be brought about by
the action of the Treasury Department.
This Feature Looks Good.
The most encouraging feature in the
whole situation is the fact that the sale OF
the enormous quantity of farm products
will, within the next few weeks, produce
large amount of money, available credits
abroad, and in this way the money which
is being furnished will soon come back,
ready to pay off the loans and greatly i'm
prove the situation.
'One southern banker told me that in his
district alone over 100000 worth of to-
bacco was being sold to go abroad each
week The cotton movement is somewhat
late, but will be very large and active when
II comes, and it is all going at very high
prices. The exports of wheat and flour for
fast week are equivalent to about 5.25OoOO
bushels of wheat. which was practically
one-half of the worlds shipments. If it
were not for the fact that the movement
of grain is considerably retarded by the
tight money market and also somewhat
by the shortage of cars, this wheat move
ment would doubtless amount to Z 900 600 or
SOOp.GoO bushels per week. AS has been 50
often said, the present money Stringency is
more than ever world condition. and not
so much as usual crop moving stringency
this fall. The main element of strength in
our situation is that we have such enor-
nous power of producing wealth that il
gives us tremendous power of recupera
ton. and in this we have the advantage
over all other countries.
Banks in Good Shape.
Il am glad to say. also, that the banking
position is unusually sound, and there are
fewer banks on the anxious list in the
controllers office than there ever have been
since l came here. six years ago The re-
ports of condition of national banks on
August - show that the banks hold this
year LIB per cent legal reserve against
2O-IO per cent one year ago; not a great in
crease, but ii is good sign that ii is not
worse. The total cash means August %
last were 25.50 per cent of deposits, whereas
the year before it was % ~ per cent, show
Ing very little difference
Il do not want to deny wish to ask
anybody to disbelieve the fact that we have
had a serious financial situation, and that
We are not by any means through it yet,
but il is situation resulting from Il de-
mand on the part of business for large
amounts of money and credits to handle an
active business at high prices. The stua-
ton is already better than it was, and If it
continues to be handled by the banks In a
very conservative way, it has been for
the last few weeks. we ought to get through
without any very serious crisis, and witt!
only recession in the volume of business
which will probably be healthy and good
thing for everybody"