The Washington herald., 1907-10-31
NO CAUSE FOR WORRY.
Nothing in Financial Status
to Give Alarm.
WORST OF FURRY ENDED
Statement Is Issued by Comptroller
RidgeIy Setting Forth How Circu-
Increased In Affected Localities.
Mint Ordered to Hasten Coinage.

Z
Mint Ordered to Hasten Coinage.
Secretary Cortelyou and his associates
in the Treasury Department hold an 0p-
timistic view of the financial situation.
Since the beginning Of the financial dis
tress in New York, the Secretary and his
advisers have been in close touch with
bankers and fnanciers there, and they
have had frequent conferences by tele-
phcae ard other methods of Communca-
ton with fnanciers in all parts of the
country
Yesterday they gave encouraging ex-
preston TO the belief that the Sworst of
the furry is over, and that there is
nothing now In sight 90 cause apprehen-
sion Secretary Cortelyou and his asso-
ciates are constantly studying plans TO
relieve the money stringency not only in
New York but at other points. and they
are confident that the government is in
a good position 20 assist IN the restora-
tion of confidence in the business world.
which II was said yesterday is the main
consideration now.
The chief function of the government
in this connection is the exercise Of means
10 increase the amount of currency at
different points, 20 relieve immediate
needs, Many millions of dollars have
been transferred TO national depository
banks upon approved securities. and now
steps are 10 be taken 10 increase the
national bank circulation, or rather 10
make il possible for national banks so
to increase their circulating notes as 10
meet the financial emergency in their
respective localities Yesterday state
ment was issued by Comptroller of the
Currency Ridgely setting forth how this
may be accomplished.
In addition orders have been issued to
the officials OF the mint to hasten the
work Of coinage. so that as large a vol
ume of currency as possible may be pro-
duccd and thrown into circulation within
the next few weeks.
Mr.. RidEeIy's Method.
The statement OF Comptroller RidgeIy,
setting forth the method by which the
national banks may increase their note
circulation. follows.
"The Comptroller's Office will in every
proper way facilitate the immediate in
crease of national bdnk-note circulation.
With this end in view. all such national
banks as have government bonds in the
hands Of the Treasurer of the United
States to secure deposits. and also have
any available capacity for increased cir
cuiation, will be allowed TO substitute
/ other bonds satisfactory 20 the Secretary
/ OF the Treasury, as basis for govern
ment deposits, provided the government
bonds thus released are used to Increase
/ circulation.
This rule viii apply not only where the
| bank transferring the bonds from the de
posit account 90 the circulation account
takes out the additional circulating notes,
but also where an arrangement can be
made for any other national bank hav-
/ ing capacity for increased circulation, to
take out the additional notes.
National banks are urged 10 take this
question up Immediately with the depart
ment, by telegraph, and take out the ad-
ditional circulation as rapidly as pOSsi-
BILE The Comptroller's office will be glad
1 20 furnish whatever information is need
/ ed in regard TO circulation printed and
on hand. and bonds available for TINS
| purpose.
Treasury officials say the volume Of in
/ creased bank circulation which will result
from this plan will depend upon the ac-
tion of the bankers. There is no doubt
that a number Of banks will avail them
/ selves of the privilege of substituting
minor securities for the government bonds
which are now used as the basis OF de
p0sits, but the responses will depend. to
q large extent, probably. upon the needs
for more currency in particular localities
The plan for the substitution of bonds is
not new one. 1t was introduced under
the administration of Secretary Shaw.
Explained at Treasury.
As explained at the Treasury Depart
ment yesterday there are many banks
that have less than the maximum Of
circulation outstanding. Many such banks
have government bonds on deposit TO
secure government deposits. 1t was stated
that if the banks which could take ad-
vantage Of the method proposed by Mr..
Ridgely should do so, about so, ,000,001 o.
circulating notes would become almost
Immediately available. as the notes are
printed and in the hands of the Comp
troler's Office.
According to Treasury officials, more
than &90,0O.)JO in government bonds are
I'm the hands OF the Treasury officials 20
secure deposits, and it would be possible
to expand the currency of the nation
through the national banks 20 an amount
approximating S3G0, 100000 before the limit
of the capital stock Of the banks would
be reached.
It is not thought likely that resort will
be had TO the full capacity of the banks,
but Treasury officials are of the opinion
it will be found convenient for some
banks TO increase their note circulation
10 the full extent allowed under the law
In this direction new lies the chief hope
of the Secretary of the Treasury and his
associates in the complete reservation of
public confidence. Il Is thought that
when il is found the banks Of the cOun-
try have this enormous lever with which
to Dry away financial trouble, the busi-
ness world will see that the means of
safety are at hand and that the stress
and fear of the last few days win COM
pletely subside.
NEW YORK PRODUCE.