Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-01-01
FAST LIVINC
CAUSED PANIC
SA VS. RDGEL Y
COMPTROLLER EXPLAINS BAD
FINANCIAL CONDITION
Believes More Failures VIII Come,
but These viii Be Results Of
Merely Local Con-
ditlons

By Associated Press.
WASHINGTON, Dec. s1.-w. B. Ridge
ly, comptroller of the currency, today
gave out a statement dealing largely with
financial conditions during the year 1907,
in which he says that the conditions
which made this crisis possible are the
accumulated composite results of many
years of business. The whole world has
been over trading and expanding and
nowhere greater than in the United
States.
The reaction was inevitable, and though
1t might not have taken the form of
bank panic had we been better prepared
for 1t with such banking and currency
system as we should have, the time mas
come when some or all must pay for our
overindulgence.
ut is the duty of the banks" says the
comptroller, Ito restore business to nor
NAL conditions by resuming their func-
lions as promptly and as full as possible.
Fortunately there is not only the strong
est desire and disposition on the part OF
the banks to do this, but conditions are
such as to make it comparatively easy
and to lead us to expect a much more
prompt recovery than has followed other
similar financial crises. The reports to
the comptroller show that the reserves
in the central reserve cities were but
22.2 per cent, against the legal require
ment of 25 per cent.
Bank Conditions
'The forty reserve cities show 24.72 per
cent of legal reserves, or almost the full
legal minimum, while their total cash
means are 1855 per cent of their deposits.
'.Of the forty cities. twenty-one show
legal reserves above % per cent, while
the balance of them hold over 30 per cent
Ill N...N A4rrlaf af
them show more than % per cent of total
cash means. The largest reserves are in
the Texas cities, Galveston and San An
tonic showing over IS per cent of legal
reserve and Galveston over As per cent
of legal cash means.
"The returns, tabulated by states, are
also significant and reassuring as to gen.
eral conditions. There is not one state
which does not show an excess of reserve
above legal requirements of 10 per cent.
and an increase in legal reserve and total
cas- means on December above those
held on August p.
I'm the subdivision by states, the Pa
cific states show the largest legal re-
serve of 22.2S per cent, while the western
states show the largest cash means, 32.11
per cent. The. most. important signifi-
canoe of these figures is that the read
justment of bank reserves has taken
place with so few bank failures.
Prom October 20 to December 30, 1907,
there have been but sixteen suspensions,
or failures, of national banks. OF these,
two have resumed and several more
should do so in the very near future.
THE reports of condition of the ma
tional banks shows that from August 2
to December individual deposits de-
creased but $142, 000, 900, or about 315 per
cent, while the decrease in cash, on hand
was but $40,O0O000 and the increase in
bills payable and re-discounts was about
$42, 900.
Panic Serious
I'VE have a very serious bank panic.
1t would have been much worse, but for
the aid of the treasury department and
some OIL the leading financial men of the
country. 1t will probably never be known
how much credit was due to a few men
who furnished vast sums of money and
supplied credit from their enormous re-
sources in the patriotic effort to stop the
panic and relieve the situations which
might have led to a far greater disaster
if they had not been so promptly met
and so successfully handled.
TFrom these facts in regard to the
banking situation it would seem a fair
conclusion that acute bank troubles are
past, but values of all kinds will have to
be rearranged We shall have more fail
ures and probably some more bank fail
ures but these will be individual cases.
the result of particular conditions. We
have been going too fast in business and
all classes of people have been living too
extravagantly. 1t will be good for all of
us to check this