Show 11 BLAMES BLAB BANKS FOR PANIC Lack of Confidence in Themselves Themselves Themselves Them Them- selves Responsible 1 He Says REMEDIES ARE SUGGESTED National Governmental Bank Advocated in Annual Report Washington Dec Dee 16 Comptroller ol of tho Currency William B. B Rl In iii hi hl 1111 annual report submitted tola today discusses dla- dla cusses time the reasons for the tue present mOle money stringencies and remedies that have been suggested as safeguards against a n recurrence of oC the time recent money mone panic Time The report shows shown that the time comptroller ler ber ha has carefully st studied financial aCaU at aC- aU I and many suggestions lons arc made as to retried rent medics lea and pr tie lie le stated that there there- had been becu more of oC a panic punic among the time banks than tuan among amonn UI the people of oC the tho country countr and ant IU suggests Immediate legislation to a repetition ion tion of oC the time recent reent stringency It I has hus been een one ono of oC time the peculiar tea fea features tures of oC the time situation says say a thin tho report report re rem- re- re port that thoro thero has hus actually been mutt moro of or IL I pun Ta I a among Ui lh the banks thoin- thoin solves thor has oon ig II t ho i i t. t K cI I d Un r usual I deposits ont partial rc reserve vo Cro only available If I aV available at all ni they huv hav boon been compelled In him self protection tc to toI gather from ev every ry source ull the tho nione I they thOY could possibly reach and ant to hold on to o it by refusing payment t n rl It lit s 1 Possible and amid satisfying satisfying- t their cun with the smallest possible of o cash c u h. h Time The conditions which led to tho thu th panics panics pan pan- ics of or October and nail November 1907 wore not due duo to time the failure of or a few Cew ow In Individual In- In banks They were not duo toa to tc a lack of confidence C of r the tho people In Inthe inthe ll at fh the ag banks n but more inure r t to a lack of confidence con con- Ol of or time the banks themselves ol nn and their reserves The Tho banks bank have been beca afraid that lint the tIme reserve system Would break down anti and andIn In consequence It I has hat broken down and ald th time the c reserve deposits ha have hac c been on I partially available a Theyo rheo were also fearful earful that not sufficient currency had been supplied to meet the ito demand and andas as they thc all made the demand at nt once ni malo there hero has not been sufficient currency Th The result has imas been a currency fam fani- Ins ine Tho rho remedy for this state of or af affairs nr- nr fairs Is IH to Improve the time reserve system so so that tho the reserve reser e deposits of the time banks can be In a n bank where they are aro surely and ant certainly c available alabe a AVe We e emust must Impart to our currency system some sort element clement of or elasticity so that when there comes conies a sudden demand for Cor currency It can be le supplied In bank banknotes banknotes notes without depleting the time supply of reserve mono money The only way to make our system what It I should be is it through the lie agency of oC a national governmental bank Every country countr of commercial importance import Import- ance bus a adopted this plan Illan HOlt Had we such a I bank banI In operation In the time fall CaU of 1907 no such panic punic as wo havo had hind would have been possible Unless we wo do to something of oC this kind we c shall always alwa s have panic anie after aCer J panic until we have learned the time plain lesson from experience and n adot time the only efficient scientific and olt proper means to protect our people In business from Crom such disasters I |