Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-01-01
TINE AT HAND TO SLOW DOWN
Comptroller Ridgeley Discusses the
Financial Outlook.
NATIONS PACE IS TOO FAST
Respects Paid FinRnciers who Helped
WITH Fortunes When Banks
Were Hard Pressed for
Funds.

WASHINGTON, Dec. 3l.--W. r. Rodgely,
comptroller of the currency, today gave
out a statement dealing largely with finan-
cial conditions during the year 1907 In which
he says: "The conditions which made this
crisis possible are the accumulated compo-
site results Of many years Of business. The
whole world has been overtrading and ex-
pending, 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 a bank
panic had we been better prepared with
such a banking and curretcy system as
we should have the time has come when
some or all must pay for our over
Indulgence"
1T the duty of the banks" says the
comptroller, ito restore business TO normal
conditions by resuming their functions as
promptly and as full as possible Fortu-
nately there is not only the strongest desire
and disposition on the part of the bank to
do this, but conditions are such as to make
it comparatively easy, and to lead us to eX-
pect much more prompt recovery than
has followed other financial crisises"
The reports to the comptroller show that
the reserves in the central reserve cities
were hut 222 per cent against the legal re-
uulrement of 25 per cent. The forty reserve
cities show 24.72 per cent of legal reserve,
or almost the full egal minimum, while
their total cash means are 1855 per cent OF
their deposits.
OF the forty cities twenty show legal
reserves about Is per cent, while ten of
them show over 30 per cent of legal re-
serve, and all but eight of them show more
than 25 per cent of total cash means The
largest reserves are in the Texas cities
Galveston and San Antonio howing over
SS per cent Of legal 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 not show an excess of reserve
above legal requirement of 15 per cent and
an increase in legal reserve and total cast
means on December above those held or
August %.
Pacific states Lead.
I'm the subdivision by states, the Pacific
states show the largest legal reserve, 22.S
per cent, while the western states show
the largest cash means, S21i per cent. The
most important significance of these figures
is that the readjustment of bank reserves
has taken place with so few bank failures
n
there have been but sixteen suspensions OF
failures OF national banks. OF these two
have resumed and several more should do
so in the very near future.
''The reports of conditions of the nationa
banks show that from August p to De
cember individuals deposits decreased
I but Sl42,OOO.OOO, or about SN per cent, whih
| the decrease in cash on hand was ou
I $4,000 coo, and the increase In bills payable
and rediscounts was about s42,0O0,OO0
! I'VE have had a very severe bank panic
It would have been much worse but 70
| the aid given by the treasury department
/ and some of the leading financiers Of tn
| country.
Financial Patriots.
1T will probably never be known hoy
much credit is due to few men, who fur
nished vast sums OF money and supple
| credit from their enormous resources, Il
the patriotic effort to stop the panic an
relieve situations which might have led I
far greater disasters II they had not bee
so promptly met and so skillfully handled
From these facts in regard to the bank
| ing situation, 1t would seem but a fair con
clusion that the acute bank trouble is past
but values OF all kinds will have to be re
| arranged. We shall have more failures
| and probably some more bank failures, bu
these will be Individual cases. the resu
of particular conditions We have bee
going too fast in business, and all classe
| OF people have been living too eXtFava
gantly It will be good for all of us
| cbacIr this