The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-01
NATIONAL BANKS
SOLID AS ROCK
Important Statement Made
Public by Comptroller
w. B. RidgeIy.
STATES IN FRONT
FAST LIVING CAUSE OF ALL THE
TROUBLE.

Washington. Dec 31.-W. b. Ridgely.
comptroller Of the currency, today gave
out a statement dealing largely with
financial conditions during the year
1907 in which he says that "the cOndi-
lions which made this crisis possible
are the accumulated composite results
Of many years Of business. The whole
world has been over-trading and ex-
panding and nowhere has it been more
rampant than in the United States.
The reaction was inevitable. and
though it might not have taken the
form of bank panic had we been bet
ter prepared with such a banking and
currency system as we should. have.
the time has come when some or all
must pay for our overiBdulgence.
First Duty of the Banks.
TT is the duty of the banks" says
the comptroller. TO restore business 10
normal conditions by resuming their
functions as promptly and as fully as
possible. Fortunately there is not only
the strongest desire and disposition on
the part Of the hanks to DO this. but
conditions are such as to make il com
DaratiVely easy and TO lead US TO ex-
rect much more prompt recovery
than has followed other similar finan-
cial crises. The reports TO the comp
trOller show that the reserves in the
central reserve cities were but 222 per
cent against the legal requirement Of
25 per cent.
What Forty Reserve Cities Show.
THE forty reserve cities show 2472
per cent Of legal reserve of 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
ten of them show over 80 per cent Of
legal reserve, and all but eight of them
show more than . per cent of total
cash means. The largest reserves are
in the Texas cities, Galveston and San
Antonio showing over 90 per cent of Ie-
gal reserve, and Galveston over As per
cent of total cash means
THE returns as tabulated by states
are also significant and reassuring as
to the general conditions. There is not
one state which does rot show an ex-
cess Of reserve above legal REQUIRE
ments of IS per cent and an increase
in legal reserve and total cash means
on Dec. 3 above those held on Aug. %.
Pacific States Take the Lead.
I'm the subdivision by states. the
Pacific states show the largest legal
reserve of 22.2S per cent, while the
western states show the largest cash
means, 32-11 per cent The most i'm
puTtant significance Of these figures is
that the readjustment Of bank reserves
has taken place with so few bank fail
ures
From Oct 20 to Dec 90, 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 national
banks show that from Aug. p to Dec. 3
individual deposits decreased but S142-
100000, or about 312 per cent. while the
decrease in cash on hand was but $40
10000. and the increase in bills pay
able and rediscounts was about S42, Co.,
OOO
I'VE have had very serious bank
panic. 1t would have been much worse
but for the aid given by the treasury
department and some of the leading
financial men Of the country.
Have Been Going Too Fast.
1T VIII probably never be known
now much credit is due 10 few men
who furnished vast sums of money and
supplied credit from their enormous
in the patriotic effort to stop
the panic and relieve situations which
might have led to far greater disasters
If they had not been so promptly met
and so successfully handled
Prom these facts in regard to the
banking situation it would seem but a
fair conclusion that the acute bank
trouble is past, but values Of all kinds
will have to be rearranged. We shall
have more failures and probably some
more bank failures, but these will be
individual cases, the result Of Darticu-
lar conditions. We have been going
too fast in business. and all classes q
people have been living too extrava-
gantly. It will be good for all OF US