The Birmingham age-herald., 1907-08-25
DE TAILS IF PLAN
 ID AID FINANCES Comptroller of Currency Talks
 of Stringency MONEY IS HARD TO BORROW Secretary Cortelyou's Plan Is to Make Deposits of Government Funds
 Wherever They Are
 Most Needed
MONEY IS HARD TO BORROW

Washington, August 24.-William R. Ridgley, comptroller of the currency, today discussed In detail the plan which Secretary Cortelyou has formulated to relieve possible money strngeney this fall through the distribution of funds among national banks.
 He gives several reasons for regard ing the plan as wise and timely" and says he can see no reason why the de-
 mand for liquidation should become so
 general as to produce anything like a panic or commercial crisis. In fact he takes a most optomistic view of the
 situation, maintaining that the re-
 sources of the country never at any
 time were so readily available for pro-
 gress and development as they are at
 present. Comptroller Ridgley's state
 ment follows:
 It is well known by every one at all conversant with the money market that
 the present stringency applies far more
 acutely 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 manufac- turing interests.
 "The secretary's plan of making de-
 posits when end where needed will en- able him to apply his relief wherever 1t will do the most good to commercial and manufacturing business with less reference to the speculative sltuat-pn. believe 1t Is better to make this an nouncement now and offer the rellet
 in this way, than to wait until the | t.. Ap a panic and rates for call loans are eN- tremely high.
 One of the great disturbing factors in our annual crop moving strinEency has always been the uncertainty as to when and how the secretary or tue | treasury would take action. IL IS some
 times charged that call rates have been manipulated up to fictitious heishts to effect this action.
 q am glad that Mir. Cortelyou has
 anticipated this and by making this an nouncement now, removed as much ol
 the uncertainty as possible
 "While the present situation Is one re- uulring care and cool headed. dedberal e action especially on the part or 'he bankers, there is no reason at ah Why
 the demand for liquidation should so snreed as to produce anything like d manic or commercial crisis. The bank ing condition Is unusually sound more so on account of the read1ustmeht or stock market values There Is tremen- dous demand for money as 1t Is ealied' that is a demand for credits to finance all kinds of business. But 1t Is no greater than II has been in the aggregate, ana only requires some shifting In detail. ne banks have the resources to supply thls credit and while 1t may be necessary for them to curtal new operations ana discourage any further expansion among their customers, they have no difficulty in taking care of the current phslness and accommodating their custoHleis III all legitimate demands.
 "rhe element in the situation due 10 the
 aeason of the year. is the fact that we have raised between five and SIX pli- lion dollars worth of grain, cotton, cat tle. hogs and other farm produce, III addition to the coal, iron, steel, copper and other wealth that is being produceu This Is not q situation to get frightened
 about or to make it necessary to call
 on every one suddenly to pay their depts' but if should rather encourage the Danks to take care of their customers and make
 loans conservativey, wherever thefe IN nroper basis for credit. We shopiu take courage from the fact that although tnls
 situation doubtless is as claimed, Worlu- wide and international, that ne nave li tbie country enormous elements Tor re- cuneration in this vast production ot
 wealth. 1t never was so great as at the present time, or more aVailaoie TUT our nrogress and development.