The Providence news. (Providence [R.I.]) 1891-1906, 1902-12-16

Total ESQ far made public) .... S44.oW"o
A representative Of the pool made this
statement regarding Its formation:
FIFTY million dollars is the amount at
the disposal OF the committee, consisting
OF George r. Baker, ]. p. Morgan and
James Stillman, TO be loaned IL needed.
The pool was suggested and formed by
Mr.. Baker, his work upon IL beginning
last week The reason for the formation
Of the pool Is To allay apprehension, and
As a protective measure. rather than 10
take care OF any known trouble. No trou-
BILE II known. but the knowledge tina;
such a pool exists should operate against
unreasoning fright which might cause
trouble.
None of the pool money has teen
loaned today. and. In fact. the poo' may
never loan any. I think the mere knowl-
edge that such pool has been formed
vii be sufficient TO allay apprehension
and do away with the necessity OF the
-peal itself loaning.
'Tn case the pool should ma neces-
sary TO act In the matter OF loaning.
some OF It's money would be in the hands
OF the committee. and Il might b. done
.in ough ary one OF them. hut probably
tn, ough Mr.. Baker. In view o. the fact
that re organized the pool"
OTHERS MAY COME IN.
The question was asked Of 'ae repre-
above list OF subscriptions. amounting 10
Sf,5pJ,c0c. why he referred ID II as
$50, 900 pool. and whether tho discrep-
ancy indicated that other banks would
would be taken In as subscribers. He ce-
clined TO make a definite answer 10 this
question. merely saying That is the
pool. You can call II s40.0oo,00o pool IL you
like"
Asked II the formation Of the pool was
not practically equivalent to action
which might have been taken by the
clearing house banks on the premises by
arranging for a possible issue OF clear
ing house certificates. he replied: An
issue Of clearing house certificates has
never been considered.
Where does the $50, 600 900 come from
which the pool is prepared to loan?"
From the vaults OF the banks"
Then why hasn't II been loaned be-
fore during the tight money period"
representative.
In another quarter the opinion was ex-
pressed that actually, Of course. $50 000.-
900 OF the new money had not reached
this city. nor was that amount lying idle
in the vaults OF the banks. The inter
ests that expressed this opinion said,
however. that they thought that the ac-
tion taken In the formation Of the pool
followed a decision by important local
financial interests, who feared the talk
that has been heard for weeks past about
stringent money conditions would result
in serious emergency, TO draw upon
the reserves Of the banks. this In their
opinion. being a better move than an is
sue OF clearing house certificates.
That In TO say, I'm case Of absolute ne
cessity, the banking interests represented
in the pool might loan part Of their
cash reserves. which under the laws are
supposed TO stand at % per cent. Of their
deposits. Sc per cent. being. In the opin-
ION Of these interests. an altogether too
heavy reserve 10 carry in time OF money
etrngency.
Also. II would he possible i'm order TO
furnish a large fresh basis OF credit to
draw upon the 10000 900 Of cash reserve
which has been carried against the
s4o.000.000 OF government money now In
the New York banks Secretary Shaw
having done away with the necessity of
holding any reserve against this govern
ment cash.