The Birmingham age-herald., 1907-05-30
LET TREASURY GET OUT MONEY MARKET Comptroller of Currency Ridge Iy Speaks at Detroit KEEP FUNDS IN THE BANKS
  Best Way to Handle oelIeetlons and and Distribute Government Funds lS Through the Banks
 of the Country
KEEP FUNDS IN THE BANKS

Detroit, Mich, May 29,-'rhe Bankers club of Detroit celebrated It's tenth an niversary tonight by q banquet at the Hotel Cadillac.
 William Barrett Rldgely, comptroller of the currency, was the principal speaker. He spoke in part as follows:
 "The best way to handle the collections and distribution of government funds Is through the banks in which the business of the public is transacted. The passage of the act of March 4, 1907, or the so- called Aldrich bill makes it possible to take long step In this direction by leav- ing the revenues of the government Tn circulation instead of collecting cash and storing it in treasury vaults.
 "The most constant and serious com plaint which is made of the working of the treasury department in it's relation to the business of this country, is that the treasury is always in the money market, as disturbing factor; that 1t is contin- ually taking money out of the regular channels of trade, and locking it up in it's vaults, when 1t Is needed in circulation. To correct the conditions resulting from these operations the Secretary of the Treasury has for years found 1t neeesV sary to adopt varying expedients to put the money back into the hands of the people. These different measures are gen orally put in force only when bad ef- fects of the treasury operations have ac- cumulated until the money market has reached an acute condition, and frequent ly when the stock market, which is the most apparent indicator of financial dis turbance, is in a panic, and there is dan- ger that the rising liquidation may spread to the banks and general trade and as sume such proportions as to be danger ous to all kinds of business. When ac- tion of this kind has to be taken there is always more or less criticism, the secretary is accused of acting only for the relief of Wall street and stock market gambling. The fact that stock market conditions and declining stock quotations seem to be the occasion for the action necessarq, and that the relief, if adequate must at once restore sta blity to stocks, and possibly is made the basis for their advance, gives confirma- tion to the charge that no one Is helped but the stock speculators. It is hard for the average DuslDeSS illdn NO dppl0 the effect on his business of stock mar ket conditions and to differentiate between the gambling of a few men trading In margins and the vast volume of transac- tions, which determine the real values which are the basis of so large propor- ton of loans and credits, the disturbance of which, at any time, produce results which will bring panic and distrust to many or all lines of business.
 | T ort nf wisdom instead of waiting until harm has been done. and then try to cure 1t, to prevent the harm being done at all f that Is possible I believe this not only possible, but comparatively simple and practicable under the laws as recently amended.
 'It would be highly advisable, in my opinion as a means of minimizing the dis turbance of the money market and busi- ness affairs generally, to keep up the funds of the government as far as pos sible on deposits in the banks, and only withdraw them to treasury to reeoup the funds there for expenditures after they have actually been made. This would keep the money in circulation, and reduce to d minimum the disturbances we now complain of so much, caused by the with drawal of funds from circulation to be locked up in the treasury vaults.
 Let the treasury get clear of the money market and leave it alone. Business men would then know what they could expect and make their calculations ac- eordingly. This would have a most salutary effect, for when people realize that the treasury department would not run to their aid as soon as money pe- came tight, there would be less depend ence on such relief and far steadier mad more satisfactory condition in the money market"