Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-31
SITUATION REVIEWED
Controller of Currency Ridgely
on the Panic.
THE WORLD 0VERTRADING
All Business Men Must Bear Some
Part of Blame.
WHY FEW BANK FAILURES
Most of Them Held Over Full OF
Legal Minimum Of
Reserves.
WHY FEW BANK FAILURES

William B. Ridgely. controller OF the
currency, today gave The Star an Inter-
esting review of the financial situation.
He has been thick in the trouble from the
beginning. This is what he says:
THE financial panic in the year 1907
will doubtless cause many business men
always to remember the year with feel
ings of repentance or regret 1t by no
means follows. however. that we should
look forward to 1908 with forebodings or
fear. We have had our panic. but II Is
over, certainly as far as its acute stages
concern US, and will soon be only matter
of history. If we are TO judge from the
past, we can at least be sure we are
not likely to have another in 1903. II
there is any periodicity in such matters.
the period Is fortunately Of much longer
duration than one single year.
THE conditions which made this crisis
possible are the accumulated composite
results of many years of business. The
whole world has been overtrading and
expanding and nowhere has II been more
rampant than in the United States. The
reaction was inevitable, and though It
might not have taken the form OF a
bank panic had we been better prepared
with such banking and currency sys-
tenn as we should have, the time had
come when some or all must pay for our
overindulgence.
Locating the Blame.
at is impossible to exactly locate the
blame and say just who should bear 1t.
Let the man who Is without sin cast the
first stone There is no one in any way
connected with any business who has not
in some way contributed to the expan-
sion. 1t. is not necessary to have specu-
lated in stock. cotton. grain or In real es-
tate. Who is there, however VINO mas
not bought stock or be nds In some en-
larged undertaking. either personally or
as director or trustee; mas not eniatBeo
his business, Increased his expenses. or
made some investment based on the con-
fdent expectation that business would
| continue with the activity 1t has shown
| for several years past? I know Of no one
who has not contributed to the general
/ condition in this way.s-z
| Zone thing ID certain; we are AL now IN
| the same boat, and must endure together
the after results of the panic. and VIZ are
all vitality interested m MITIGATING ltS et-
fects and recovering from IL as soon as
possible, leaving the minimum OF per-
marent result
ION no one does this duty fall so direct
ly as on the banks. By their partial sus-
pension of payments and their disarrange-
ment Of the machinery OF domestic ex-
though they may have been, they first
brought the effects of the business reac-
ton to bear on their customers and on
the business public. 1t Is their duty to re-
store business TO norman conoluons oy re-
suming their functions as promptly and
not oniv the strongest desire and disposi.
ton on the part of the banks to do this.
but conditions are such as to make It
comparatively easy aho 70 leaa US 70 -
peel uea q tnuSa atSar sin,;Iar financial crises,
Ths strir;ne featura of the panic Of 1907
IL ~.
trouble with the banks has not been worse
and the taliures more numerous a"o ~ioe-
sp.Sao. pmS o,,oh.- On "a recemher 70 1907.
there have been but sixteen suspensions
or failures OF national banks. OF these
two nave resumed la, anu uss s,,,,,rs "o'e
.Tntros, ,his nth the manic of 1903.
Contrast tnIs WIN Ie punS -.
wnen 10y nsa naeu. uaa,a- reonaned Tbe total
tnesI o1 net,nnaI bank faiJ,Ire- for 1907
ius,,oei ~ II, ~ Ute n,nher has heen exceeded
Is -, auu i've s,' i, years when we have had
many uniSs ~ Se.aiS he n.1isd nanic
nothihs MniSn tHnra sora stood The strain
1ne oonns e., r,aets hetter than ever
of the last rev weeks 3; oSe Set,er 'o nond;t,on
oerore, ana eIes ~, go n,sra aSter
January l, iSoo, thaIi .isy exe s,s;t,es oe
such Crisis. Inc rsPol. " t~o.e H,,Ist
the natonal paHhs sl0m S.s,Sai denasits IL
% to Decemoern r. on niulsioua. ann M etopt az w,
creased but $l4Z;oOO.oo, or auUo. % pes
cent, while the decrease IN casn ON nano
was but 100000. . and the increase as Sem IN
bills payable and reoiscouhts was ABOUT
| s42 600, 600.
Legal Reserves.
MI <...,, -.s.rre cities .hou a 70 mar
Inc Ior'y e go. ths t,,u
cent OF legal reserve, OF aI"oeI ''e 1uiA
| legal minimum, while their total cash
n,eans are 2s 55 per cent of their deposits.
- - go, oi.ies ,wentv-one show legal
VI the Iot'y e'li.o
reserves ABOVE 20 per Cent WINE 'en o'
them show over 30 per cent or legal re-
carve and all but eight of them show
- ,h.n OK ner cent of total cash
more '',an res.-x,.. az. ,r 81.
means. The largest reserves arg ~ eao
Texas cities. Galveston and San Antonio
showing over as per cent of legal reserve,
Ca,,,..ton over AZ ner cent Of total
ana SaNeseoii 'e -,
cash means.
Ine returns aS and reass,ring as 70 the
general conditions. There is not one state
| which does not show an excess OF reserve
ABOVE iegal aeau.lees az 'nea1 ,eser,,e apnd totai
eaeh al means DecemSer 8 above those
held on August o.