New-York tribune., 1908-01-01
RIDGELY ON FINANCES
Predicts Period of Read jHstment of
Values H'H Be Brief.

washington Dee a.-w. B. Ridgely. Controller
of the Currency. gave out a statement to-day deaf
ing largely with financial conditions during 1901
he says
The conditions which made this crisis pOss BIZ
are the accumulated composite results of many
years OF business The whole world has been over
trading and expanding. and nowhere has it beer
more rampant than in the United States. The re-
action was inevitable. and though it might moi
have taken the form of a bank panic had we been
better prepared with / baking and currency sys-
TEN. should have been. the time has come
Shrn some or al must pay for our overindulgence
The statement continues: -
It Is he duty Of banks to busiH Hess q
normal conditions by resuming their funcJ iona
pT1irpty and as iliy as TGssloie EoTt1naSS.k.
ten The part o1 the banks to 90 this bat eont-
81 80 e - I.he ~ SO!llLa .sely essy
ceyery than has followed other similar financial
The reports to the Controller show that the re-
serves In the central reserve cities were oEly T.
per cent against the legal requirement OF Is per
cent The forty reserve cities show 24-2f per cent
q legal TsseTye or almost the fun legal minimum
NELL ss e ssT ,o m % 7b T ns sfes aFs 2SS per cent OF
& sal I'D n e sDoS ~ - per cent T ane Ten OF theI6 ZEN
tta Tesas rties C;SI,estnn and esn Gntonio shor-
ing than IS per cent Of legal reserve and Cal
r. 9h , - TT cent ~ oi s9Ssi re Ss aIao Sig
n,fsant and re3ssuTnE as to the genera cono1v n
an Of reserve above sssI requirements Of Is
per cent and increase IN legal reserve and total
August % IN the subdivision by the Pacific
cent while TIE western States show the largest
Tae most fmportsnt sfEnincance Of these figures
s that he IN f9 Sf sanS sare Kfso1s nas
the central reserve cities have received through
P9r 90 0f gold 9nj 0thsEwst cftag as mbee bes
ben ed cut 9q and her = rsses s paid snte dGEP sa5k to IL
one 0f Che central reserve ctties.
STRENGTH OF THE BANKS.
From October 20 to- December Co. 1907. there have
been sixteen suspensions failures of national
ore should 10 So in the near future Contrast this
se @ nd Hf x hee OF m nefe @ neTe ePse
The 70 Al humber Of national bank failures for
ceeded many times in years when We have had
nOta hSs ooald be called panic n9 the Ts . banks F
weeks 6etss; than ever before @ and they al are EN- IN
Sere AfteT 2ach on crsis The reports on condton
g. the h1hs Se% ePot Hhs' da9eag tF bs
e' about & Per per sent t Ene m s 59e e m
IN blls payable and rediscounts was about S42-
since December the central reserves have
s--ady increased. and the disappearance Of any
= the Strain is reIieved Most Of the reserve
are up their legal requirements. many Of
=. in the same condition, Considering what
We have had a very severe hank panic, 1t might,
-74yer have been worse. and would have been
n ''orse but for the AID given by me LreasIg
r7e oorIntrv. It VIII probably never be known
uch credit is due to few men men "a who ,rn4t fur
~~pr Their enormous resources, in the patri9uH
& to d % Rda @ Sa4 sHd S % 55Te T
= ,h~y had not been so promptly met and so skill
F-.-u ,! esa facts in regard the banking situa-
-sor = would searn hat a fair conclusion that me
"a - :. o sr are h.r IreS,r,ei 50 rapidy that nor
T--sl c-ralriors 7aynent and ren1ttanCes may be
nOw assured. This does not mean. however. thst
business revive that we are Vet ove-
= nasI hg, We have long period Of readjustrtnt
aaT g. Fcf
VII have TO he rearranEHd We shall have more
soma more hank failures MANY people who have
II bur rhess VIII be individual cases the result #
rartlc-.lar conditions and not due 70 the general
una be "a secure funds to meet their payments
PERIOD OF RETRENCHMENT.
We shall have 70 through perio1 OF Tetrench-
men, sri hqutation but tn~re Is reason 10 oelleve
0rb.- tunes Economy and self-denial are not
pleasant. but thy a+ most Whoi'son3+ ana We
rave ben going too business and all classes
of HeoIl, nave been living too eHtraFasantly. II
will p good for all of Us 10 check this as We shdIl
now ravs = do , - :.
sh-rr ana less syere than II has been after oIher
ras-.,s ". have had money panic as bad as
1Sqe n.t 7rs fundamental strength OF conditions
80 .-,i,r.4 rs - stand the currament Of credits
nd 1,-4r-ar-.r-H1 ~ domestic exchanges with far
,-re4 Or h-Iri-ei millions OF gold in commercial
hills Without 5he ala 81 any fn.tnce D.Is ~ ~
could sold aI All our exports nave TaId ioF
-re great irf.-ron Il the Efes blood into our ar
-.rs-S - runDerCn- ,,-
- d AID a.-r-cJ;u-ai cIasses has saved us from
I4-- Ins Will bring TX out OF the !nanStrlai
concession s5cH VIII follow as soon As We ave !
'i.7'c f9T az III ~, hrought about II
- - Is .,,- aet,fs ~ reduce' our expenses
-ns~ - rs hn-,e more sound and enduring /
basis Tan exc" hefor"