The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1907-08-29
PLAN WELL RECEIVED +!
Believes Country Will Weather
Period Of Financial Distress.

Washington, Aug. -. William II.
Ridgley, Comptroller of the Currency,
today discussed in detail the plan
which Secretary Cortleyou has for.
mulated to relieve possible money
strineency this fall through the dis
tribution Of funds among national
banks, He gives several reasons for
regarding the plan as wise and
timely" and says he can see no rea.
son why the demand for liquidation
should become SO general as TO pro-
duce anything like panic or COM
mercial crisis. In fact, he takes a
most optimistic view OF the situa-
ton, maintaining that the resources
of the country never at any time
vile so readily available for progress
aud development as they are at pres.
ent.
Comptroller kidgley's statement
follows:
The announcement made today
by Secretary Cortleyou Of his plan
for relieving the strain on the money
market by the deposit OF government
funds, Is very wise and timely, and
should go very FAR toward allaying
the apprehension and restoring bust
ness to its normal condition. II Is
well known by everyone still connect
ed with the money market that the
present stringency applies far more
To time loans than to call loans.
Time money is very tight while call
money is comparatively easy. For
this reason the pressure is bearing
most heavily on commercial and man
ufacturing interests.
The secretary's plan OF making
deposits when and where needed will
enable him TO apply this relief wher-
ever IL will do the most good to com
mercial and manufacturing business,
with less reference 10 the speculative
situation. | believe 1t Is better TO
make this announcement now and
ofier the relief In this way than to
wait until the stock market Is In
moreor less OF panic and rates for
call loans are extremely high. One
of the great disturbing factors In our
annual crop-moying stringency has
always been the uncertainty as To
when and how the secretary Of the
treasury would take action. IL is
sometimes charged that call rates
have been manipulated to fictitious
heights to effect this action.
81 am glad that Mr.. Cortleyou
has anticipated this and by making
this announcement now removes as
much OF the uncertainty as is pos
sible.
"While the present situation Is one
requiring care and cool-headed DELHI
crate action, especially on the part
of the bankers, there Is no reason at
all why the demand for liquidation
should so spread as 10 produce any
thing like panic or commercial
crisis. The banking condition Is un-
usually sound, more so on account OF
| the readjustment OF stock market
values. There is tremendous DE.
mand for money, as II is called that
Is, a demand for credits To finance NIL
kinds OF business. But IL is no great
er than 1T bias been in the aggregate,
and only requires some shifting In
detail. The banks have the re-
sources TO supply this credit and
while IL may be necessary for them
to curtai new operations and dis
courage any further expansion among
their customers, they should have no
difficulty In taking care OF the cur
rent business and accommodating
their customers In all legitimate de-
mands The banks have met several
similar crises before successfully,
and With better banks, better organ
ization, more reserve money. with an
absolutely assured standard OF value,
there is absolutely no doubt that they
will be able TO take care OF things
this fall and get us over the critical
period
THE element In the situation due
to the season OF the year Is the fact
that we have raised between i've and
six billion dollars worth Of grain
cotton. cattle, hogs and other farm
produce. In addition tu the coal, iron
steel. copper and other wealth thsi
is being produced. This is not a sit
uation 10 get frightened baont, or u
make IL necessary 30 call on every on
suddenly 10 pay their debts, but 4
shonld rather encourage the banks y
take care 0f their customers an'
make loans conservativeiy ahereve
there Is proper basis for credit. VI
should take courage from the fac
that although this situation doubt
less Is, as claimed. worldwide apl
, international, that we have In tbi
country enormous clements for re
cupersti0B In this vast production O
. wealth. IL never vas so great as q
the present. time. or more ayailsbl
, for our progress and development
Prosperity Is proyerbislIy bard t
stand, but there Is no sense In Jet
ting such evidence scare US TO death.