The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-25
COW!ELYOWS PLAN APPROVED
REIIEF WHERE MOST NEEDED,
COMPTROLLER SAYS,


w,sHINOroN, Aug. 24.-wiIiam r.
Rdgrly, Comptroller Of the Currency, made
the following statement to-day concerning
Secre'lry Cortelyou's plan for the dis
iribution Of funds among national deposit
tories in times Of money stringency:
The announcement made by Secretary
Cor'elyou Of his plan FOR relieving the strain
m the money. market by the deposit Of
Government funds IL very wise and timely
and should 20 very far toward allaying
apprehension and restoring business to Its
normal condition. II is we'll known by
every one at all oonversant with the money
market that the present stringency ap-
plies far more scutely to time oans than
10 call loans. Time money is very tight,
while call money is comparatively easy.
For this reason the pressure is bearing
most heavily upon commercial and manu-
featuring interests.
The Secretary's plan OF making de-
posts when and where needed will enable
him to apply his relief wherever il will
do the most good to commercial and manu-
featuring business with less reference to
the speculative situation. believe it is
hotter TO make this announcement now
and ofer the relief in this way than TO wait
until the stock market is in more or less OF
= ranic and rates for call loans are ex-
,romely high
-One Of the great disturbing factors
In our annual crop moving .s%tringency
has always been the uncertainty as TO when
and how the Secretary VI the Treasury will
take action. II IN sometimes charged
that call rates nave been manipulated up
H. fictitious heights TO effect his action
nm, atadthuf Mr. fN,rfatxnt. has avtsosxas-l
this and by making this announcement
now removed as much Of the uncertainty
a. is possible.
While the present situation Ia one re-
nIiring rare and cool headed, deliberate
action. especially on the part OF the banks
there is no reason at all why the demand
for liquidation should SO spread as 10 pro-
dnce anything. like a panic or commercial
crisis. The banking condition ia, unusually
sound, more 50 on account Of the read
iustment " stock market values. There
Is q tremendous demand for money. as IL
is called; that is, a demand for credits to
finance all kinds Of business, But it is no
greater than IL has been in the aggregate
and only requires some shifting in detail.
The hanks nave the resources to supply
thus credit and while IL may be necessary
for them to curtail new operations and
discourage any further expansion among
their they should lave no diff
Guilty in taking care OF the current business
~ "NNO'ht thNh W uii
legitimate demands. The banks have met
several similar crises before successfully
and we'll. and with better banks, better
organizations. more reserve money with an
absolutely assured standard OF value.
there is absolutely no doubt that they will
he 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 Ia the fact hat we have
raised between Ave and ak billion dollars
worth OF grain, cotton, cattle. hogs and
other farm produce. in addition to the
coal. iron, steel, copper and other wealth.
This IL not u situation TO get frightened
At or to make II necessary to call on every
one suddenly to pay their debts. put IL
should rather encourage the banks to
take care Of their customers and make
loans ~conservatively wherever there is
proper basis for credit We should take
courage from the fact that although this
situation doubtless is. as claimed, world
vide and International. we have in this
country enormous elements for regeneration
in this vast production Of wealth. II never
was so great as at the present time. or more
available for our progress and develop
inent.
Prosperity is proverbially hard 10 stand
hut there is no sense in letting such evil
dences scare us to death"