South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-07-14
NeO Banking Ldw
IS Praised Bg
Former Controller

In an interview made public last
week in New York, William Barrett
Ridgely, a former republican con-
troller OF the currency, declared that
the present prosperity OF the United
States rests upon safe and sure
foundations. The enaction Of the
new banking law by the Wilson ad-
ministration, Mr.. Ridgely admits, is
largely responsible for this fortu-
nate outlook
Mr.. Ridgely served as controller
Under Priests Roosevelt and Taft and
Is a son-in-law Of the late Shelby
NJ. Cullom, for so years a republic
an senator from Illinois.
He said:
The balance of trade in favor OF
the United States for the first nine
months of the current fiscal year
down TO the end Of March reached
the enormous sum Of s1.491,OOO, 900.
more than double that Of last year
ard something over three times that
OF the same period Of 1913 and 1914.
This is at the rate of about $1,000
600, 900 a year in round figures
During the whole history of the gov
eminent. from Washington TO Nc
Klnley. a period of over 10 years.
the total balance of trade IN our
favor was less than $500. 000,0 600, so
that in one year the balance in our
favor is more than four times the
amount il was for this long period.
Figures Are Gigantic.
1t is difficult TO contemplate figures
anything like calmness and TO esti-
mate their effect on the present and
future business of the country with
out being too much carried away
and impressed by them. During the
last year our production OF gold has
continued at our normal rate of
about 100000. 900 per year and we
have imported about s35, 100000 in
1915 10 an estimate of 100000
in 1915. Copper has more than
doubled from s23S,OOO, 600 in 1915
to an estimate of $40. 900. 600 in
1915. Lead increased from S4S, 0O0.-
600 TO $4,000, 900 Zinc increased
from S141, 100000 TO $4,000, 700.
Due to Federal Bank Law.
This explains why we have been
able TO take back American secur-
tiles from European investors by the
hundreds of millions. with so little
disturbance to our own markets.
The change in our condition due
to this enormous business is the best
guarantee against any sudden or
abrupt change when the war ends.
We have cleaned house. paid our
debts and laid up a prodigious fund
against future contingencies. OF al
most equal Importance is the i'm
provement in our financial system,
due TO the esta blishment of the fed
eral reserve bank, which gives US
the machinery and organization for
utilizing credits and such mobiliza-
ton of our reserve money as TO
make impossible any such sudden
arrangement of our financial mat
ters as we have frequently seen in
the past. 1t was extremely fortu-
rate that this reform in our finan-
cial machinery was in operation soon
enough 10 be of assistance during
the crisis brought on by the war.
Available Gold Supply.
1t has shown great wisdom on the
part of the management of the bank
that they have allowed the reserves
TO accumulate and have had on hand
available for any contingency an in
creasing quantity Of gold. amount
ing now TO about S33O,O00, 900. Our
banking and financial institutions,
fortified as they are by this great
institution prepared 70 furnish cur
rency or gold 10 any extent which
is likely 10 be needed, are ready for
an emergency. If we should un-
fortunately become in any way in
vclved in the war our banks would
be prepared to take care OF any sit
uation.
1t can not be expected that the
present high pressure can be kept
up and such an enormous volume Of
business continued. but l can not
feel that we are in danger Of any
sudden cessation Of activity as will
interfere with our having large and
profitable business for a long time
10 come. Not only our relative but
our positive position has greatly i'm
proved. We are on a permanently
better basis.