The Ordway new era., 1907-08-30
SIX BILLION
AvERTS PANIC
PRODUCT THIS YEAR ReAcuss
SUCH ENORMOUS psopoo
TIohs CRISIS CAN'T COME.
HOPES
SAYS THAT FEDERAL CASH
PLACED AMONG BANKS sHouu n
PREVENT A CRASH.

Washington.-William d. Ridgley.
comptroller OF the currency. discussed
In detail the plan which Secretary Cor.
teiyou has formulated to relieve nos.
sible money stringency this fall
throuSh the distribution OF funds
among national banks. He gives scy.
cGal reasons FOR regarding the plan as
Wise ana timely" and says he can
see no reason why the demand for
liquidation should become so general
AZ 10 produce anything like Il panic or
commercial crisis. In face, he takes
a most optimistic view of the situa.
ton. maintaining that the treasures
were never before SO available as ut
present. Comptroller Ridgley's state
ment follows:
| The announcement made by Secre-
tary Cortelyou of his plan for relley-
ing the strain on the money market
by the deposit of government funds is
very wise and timely and IL should 90
very far toward allaying the apprehen-
sion and restoring business to It's nor
NAL condition.
| 1T Is well known by everyone at all
| connected with the money market that
the present stringency applies to
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-
posits where money Is needed will en-
able him to apply his relief wherever
IL will do the most good to CONNER
cial and manufacturing business with
less reference 20 the speculative
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 n panic and rates for call loans
are extremely high. One of the great
disturbing factors in our annual crop
moving stringency has always been
tho 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 maRiu~
much OF the uncertainty as Is pos
siblc."
while the present situation is one
recurring care and cool-headed, dehp.
crate action, especially on the part oi
the bankers, there Is no reason AT ~,
why the demand for liquidation shoulu
so spread as to produce anSthihs ilhe
n panic or commercial crisis. Inc pahh
ing condition is unusually sound hlorc
so on account OF the readaJustmeht oi
stock market values.
.There is a tremendous demand lor
money as 1t is called, that Is, de-
mand for credits to finance al hihhS
of business. But 1t Is no greater 'han
Il has been in the aggregate ana oii'y
requires some shifting in detaii. lne
hanks have the resources TO supply
this credit, and while 1t may be nee
| essary for them to curtain new oPei
atoms and discourage any lur'her eA,
pansion among their customers .ne!
should have no difficulty IN takihs
care of the current business ana nc
commodating their customers IN an le,
climate demands. The banks nave
met several similar crises before SUE
cessfully, and with better pahks' pe',
| ter organizations, more reserve niohe!
and with an absolutely assured stahd'
ard of value there is apsoluteH, nv
doubt that they will be able TO take
care of things this fall and get us over
the critical period.
"Prosperity Hard to Stand
"Tbe element in the situation Is due
n the season of year and the iac.
that we have raised between nve anu
civ billion dollars worth of grain, cot
ton cattle, hogs and other farm pro
dmce in addition to coal, iron, steer,
conner and other wealth that Is being
produced. ..,, to cot
sr,,btened about or to make II nee
essary to call on every one suddenly u
nav their debts. but 1t should rathei
encourage the banks to take care oi
,heir customers and make loans con.
sarv,tiyely wherever there Is proper
basis for credit. We should take eouI, .%is
ace from the fact that although .nis
sifu,tion doubtless is as ciaimea
lhwide, and international, tnat We
,'oua In this country enormous eie
..an,. narv FOR recuperation in this vast
nroduction of wealth. 1t never was
sn ereat as at the present time or more NOR,
ovaiiable for our progress ana aevei
anment. Prosperity is proveroiaiiiy
hard to stand, but there Is no sense IL
iattinp such evidences scare us.