Los Angeles herald., 1907-12-01
PANIC PAST,
BANKERS
TO CITY CLUB
H0ERDED MONEY IS FLOWING
BACK
TROUBLE ALL DUE TO LACK OF
CURRENCY
Financiers Helpless Because lnade-
quate Circulating Medium Gould
Not Be Remedied Promptly,
but Worst Is over

The City club held renewal OF con-
fidence session yesterday at which
bankers and others made 1t pam
that the currency panic was practicaily
over and that it was a senseless trlshe
from the outset.
The speakers agreed that the United
States has outgrown its circulating
medium, due to the fact that the coun-
try has been whirling along the road OF
prosperity too fast and that the sup
ply of currency has not kept pace.
They said boarded money was now
ing back into the banks and the WORST
was over.
Vice president Joseph D. Radford of
the California Banking association ana
of the German-American Savings Dank
said:
I'm 1890 the total banking power OF
this country was SIS, 900, 100000; that OF
the world $4,000, 100000. AT present
the banking power of this country Is
$4,000, 900, 900.
But per cent of our total business
transactions are done in cash, the re-
mainder in checks, certificates and
other paper In the meantime the
currency issue has not increased.
Applaud Mr.. Jess
Ctoddard Jess remarks were vagor-
ously applauded. He said in part :,
In In6 IlluSL VI th0 q SNsSSS
OF prosperity this country has ever
known there has come to us hnanclal
upheaval resulting in panic.
During the last few years Dllllons
of dollars have been destroyed by war
and national disasters. and during the
last few years the unprecedented pros
perity has necessitated the expenditure
of vast sums of money In permanent
improvements.
"Our present difficulty in its incep-
tion was more properly a currency
famine than a panic. With an amount
of circulating medium inadequate TO
the demands upon it, absolutely in1lex-
ible the banks were entirely helpless
to control the situation.
Under the monetary system OF all
other civilized countries the extraordi-
nary demand could have been met by
the issuance of an extra supply of
money and the condition controlled
without precipitating any crisis.
"The shortage of currency soon evil
denced itself in precipitating trouble
in one of the large New York trust
companies, which alarmed the people
to such an extent that they began to
withdraw their funds from the banks
and hoard the money.
Praises Roosevelt
''There are those who attribute all
our troubles to our good President
Roosevelt in the determined stand
taken by him in enforcing the law.
For one, blame him for the lack
of confidence and distrust felt by the
people as much as I would blame a
policeman for the fear engendered In
household by his apprehending burg
lar at his work.
1--WE should not recognize any condi-
tion of affairs to exist so bad that 1T
is not right or proper to turn the lime
light full on and enforce the laws.
Better by far to sink in an attempt to
right wrongs than to ignore them
through fear of publicity.
'If penalties were more severe and
punishment more certain less contempt
for the law would be shown by those
in high places. If prison bars were
more freqr emily the penalty rather
than fines, more respect would be
shown for law.
'However expensive, whatever the
cost may be, am in favor of turning
on the limelight until every wrong
doer is brought to terms and until we
have paid the full penalty for our sins
in not enforcing the law in the past"
Gates Pleads for Confidence
Lee Gates said the country needed
more confidence, or rather a return of
the old time American confidence in
our banks.
"Without central financial institu-
tions to absorb the idle money in the
cities business would suffer just as the
great lakes would suffer If the mill
lions of rills and rivulets of water that
fill these big bodies were to be shut
off," said Mr.. Gates,
"The banks collect our Individual
savings and loan them out to others to
help commerce and industry, building
and real estate.
"Those who are boarding money owe
1t to themselves If not to the nation to
return this money to the banks where
it will do good.
"The time for worry has passed"