, 1907-08-29
SIX BILLION
AvERTS Panic
PRODUCT THIS YEAR REACHES
SUCH ENORMOUS Proper
TIoNs CRISIS CAN'T COME.
0MPTRO LLER HOPES
SAYS THAT FEDERAL CASH
PLACED AMONG BANKS SHOULD
PREVENT A CRASH.

Washington.-William B. Ridgley,
comptroller of the currency, discussed
in detail the plan which Secretary Cor
telyou has formulated t. relieve pos
sible money stringency this fall
through the distribution of funds
among national banks. He gives sew
wise n timely" and says he can
see no reason why the demand for
liquidation should become SO general
as to produce anything like a panic or
commercial crisis. In face, he takes
a most optimistic view of the situa-
ton, maintaining hat the treasures
were never before so available as at
present. Comptroller Ridgley's state
ment follows:
THE announcement made by Secre-
tary Cortelyou of his plan for reliev-
ing the strain on the money market
by the deposit of government funds is
very wise and timely and it should go
very far toward allaying the apprehen-
sion and restoring business to its nor
NAL condition.
ut is well known by everyone at all
connected with the money market that
the present stringency applies to
loans. Time money is very tight, while
call money Is comparatively easy. For
This reason the pressure is bearing
most heavily on commercial and manu-
featuring interests.
Danger in Delay.
Secretary Taft's plan of making de-
posits where money is needed will en-
able him to apply his relief wherever
H. will do the most good to CONNER
cial and manufacturing business with
less reference to the speculative
situation. | believe 1t is better to
make this announcement now n of
fer the relief in this way than to wait
until the stock market is in more or
less Of a panic and rates for call loans
are extremely high. One of the great
disturbing factors in our annual crop
moving stringency has always been
tho uncertainty as to when n how
the secretary of the treasury would
take action. 1t is sometimes charged
that call rates have been manipulated
up to fictitious heights; to effect this
action, / am glad hat Mr.. Cortelyou
has anticipated this, and, by making
this announcement, removes as
much of the uncertainty as is pos
sible."
while the present situation is one
requiring care and c~ool-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 to produce anything like
a panic or commercial crisis. The bank
ing condition is unusually sound. more
so on account of the reimbursement of
stock market values.
There is a tremendous demand for
money as 1t is called, that is, a de-
mand for credits to finance all kinks
of business. But it is no greater than
it has been in the aggregate and only
requires some shifting in detail. The
banks have the resources to supply
this credit, and while it may be nee
essary for them to curtail new oper-
atoms and discourage any further ex-
pansion among their customers they
should have no difficulty in taking
care of the current business and &C
c%ommodating their customers in all le-
gitimate demands. The banks have
met several similar crises before sue
cessfully. and with better banks, bet
ter organizations, more reserve money
and with an absolutely a,sured stand
ard of value there is absolutely no
doubt that they will be able to TAX
care of things this fall and get us over
the critical period. G NJ 9rt
prosperity HardAto Stand"
THE element in the situation is due
to the season of year II the fact
that we have raised between five and
six billion dollars worth of grain, cot
ton, cattle. hogs and other farm pro-
duce in addition to coal, iron, steel,
copper and other wealth that is being
produced.
This is not a situation to get
frightened abou or to make II nee
essary to call on every one suddenly to
pay their debts. but 1t should rather
encourage the banks to take care OF
their customers and make loans CON-
servatively wherever there is proper
basis for credit. We should take cour-
age from the fact that although this
situation doubtless is as claimed.
worldwide, and international, that we
have in this country enormous ele-
ments for recuperation in this vast
production of wealth. 1t never was
SO great as at the present time or more
available for our progress and deyel'
opment. Prosperity is proverbially
hard to stand, but there is no sense in
letting such evidences scare u.s."