The Springfield herald., 1907-08-30
SIX BILLION
AVERTS PANIC
PRODUCT THIS YEAR REACHES
SUCH ENORMOUS PROPOR-
TIoNs CRISIS CAN'T COME.
COMPTROLLER HOPES
SAYS THAT FEDERAL CASH
PLACED AMONG BANKS SHOULD
PREVENT A CRASH.

WaShlnStOn.-Wl William Is. hiuSleSI
comptroller of the currency, discussed
In detail the plan which Secretary Cor
telyou has formulated to relieve pos
sible money stringency this fall
through the distribution of funds
among national banks. He gives sew
eral reasons for regarding the plan as
wise and timely" and says he can
see no reason why the demand for
| liquidation should become SO general
as to produce anything like panic or
commercial crisis. In face, he takes
most optimistic view of the situa-
ton, maintaining that 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 relleV-
! ing the strain on the money market
by the deposit of government funds Is
very wise and timely and it should so
very far toward allaying the apprehen-
sion and restoring business to its nor
NAL condition.
1T is well known by everyone at all
connected with the money market that
the present stringency applies 10
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-
posts where money = needed will en-
able him to apply his relief wherever
IT, will do the most good to CONNER
cial and manufacturing business with
,1.ft ttFn
situation. believe it is better to
make this announcement now and Of
fer the relief in this way than to walt
until the stock market is in more or
less of panic and rates for call loans
are extremely high. One of the great
disturbing factors in our annual crop
moving stringency has always been
the uncertainty as to when and 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 that Mr.. Cortelyou
has anticipated this, and, by makinS
this announcement, now removes as
much of the uncertainty as is pos
sible."
While the present situation is one
requiring care and cool-headed, delib-
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
panic or commercial crisis. The bank
ing condition is unusually sound, more
so on account of the reimbursement of
stock market values.
There is tremendous demand for
money as it is called, that is, de-
mand for credits to finance all kinds
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-
ations and discourage any further ex-
pansion among their customers they
should have no difficulty in taking
care of the current business and ac-
commodating their customers in all le-
Gitimate demands. The banks have
met several similar crises before sue
cessfully, anu with better banks, bet
ter organizations, more reserve money
and with an absolutely assured stand
ard of value there is absolutely no
doubt that they will be able to take
the critical period.
"Prosperity Hard to Stand.'
THE element in the situation is due
to the season of year and 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 about or to make it nee
essary to call on every one suddenly to
pay their debts. but it 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 thic
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