New-York tribune., 1910-07-30
BANKS FORM ASSOCIATION
r,roanize Under Terms of AL.
drich- h-preeIand Act.
MACHINERY FOR EMERGENCY
No Indication That It Will Be
Needed, Says Treasury
Department.

REPRESENTATIVES, ef local national banks
met al the Clearing House yesterday and
osranized the National Currency Associa-
,;ou ef the City Of New York. under the
ta-rns Of the Aidrich-EreeIand emergency
r,s--sncy law 4 r. Hepburn, president Of
sh4 Chase National Bank, was elected
-7-eSideat; Frank A Fanderlip Of the Ma
fional City Bank, vice president and Alex
a1der Gilbert, president Of the Market and
s7rlton National Bank treasurer An ex-
rcufive committee was appointed, COM
,,ase5 ss follows: W. H Porter, president
ii the Chemical National Bank: Valentine
p. SNYDER. president Of the National Bank
q Commerce; F L. EIine, president of the
First National Bank; Richard Delaheld.
president Of the National Park Bank, anu
William Woodward, president OF the Han
over National Bank
A 2. Andrew. Assistant Secretary Of the
rT-easury attended the meeting. and after
1be completion Of the organization Of the
association he said he did not expect that
TIE association or any other currency asso-
eistfor that might be formed would find it
necessary 10 apply 10 The Treasury Depart
useBt for additional circulation. as pro-
11ded for IN the emergency currency law.
There IS not the slightest indication,
he SAID. that any such currency viii be
needed this faI or al any time in the next
four years, wneu the law expires. But it Is
desirable that the banks should get the
machinery ready IL case its use ever should
ia necessary. We are hearing from the
banks II ali the large cities. and sentiment
appears TO De unanimously il favor Of fol-
.oR-nE Secretary AIacEeaEh's suggestion
concerning the wisdom OF forming these
associations according to law
in lis August circular the National City
Bank OF this city says regarding national
currency associations:
An effort on the part OF the Secretary OF
t. Treasury during the last month 70 en-
Cou-a - The organization OF national cur
-=rc- associations has met with rather
general approval In this country but Il nas
been Viewed with some apprehension abroad
- n=fve suggestive OF untowaTG financial
conditions Il Is Well recognized here tilat
-Ev a- the Treasury Department Is INSISTING
fCn l. merely for the purpose OF being LoFe-
banded As matters stood, any trouble OF
s-tlcisrt severity 10 cal for the issuance
O. emergency notes would have found no
Equipment for this purpose except IN the
District OF Columbia The banks OF wash
tuEren on June 1A 1905 very shortly after
--e massage OF the currency act, and at the
instance Of tie then Secretary OF the Treas
Az CrGz-izs6 an association but no other
associations were formed, although several
attempts vvTe made to comply Win the
treasury regulations ana interpretations q
the act
Two difficulties were encountered in the
effort to effect organizations one was t1at
every bank in sucl. an association. whether
large or small. would have an equal voice
a. The control Of the associations affairs
-h= inequality % this feature Of the law,
= 71l= manifest. was not a-one S1hcient 70
siez.r banks from organizing. There was
-l-4-r her and more serious objection Tel2ITlS
70 TIE iuacilitz- O aD- bank 70 Withdraw
,a7{r7rl-a-iIv from an association after all
IRE notes had been redeemed and the pUf-
poses CT the association had been tLliz
,~gT 1FNF
vas submitted the bare question Wlether q
rsnk could withdraw voluntarily from an
association. held that il could not Inc
Treasury followed the OifiliIOn- with Laee re-
silt that no more currency associations
were formed, and the law mas therefore
practically been 3 dead letter until this time
BGc i j. now held that any bank may
withdraw with the approval of the Secre-
tar q the Treasury and the consent OF the
executive committee 81 the board OF man
ayers o. al association PROVIDED q the
time Of such Withdrawal there shall be no
.-rred-emed a6ditionai circulating notes Is
sued 70 The association but there mas 5eei
r...-rIaence with respect 70 the other Oblec-
-lon relating to the inequality that VIII fe-
1-5r- from giving q small hank much
-gf-e II -Ee rnanageme1t of an association
zr large one This objection. "a before
stated. has never been regarded as very
serious and viii not now stand IN the way
a. -le formation % associations
N-1-7-lth standing the edisinclinati3n CL
banks 10 form associations the Treasury
proceeded OF the Theory that the statue
might bt svziIsd af al some tine OF other.
The work involved II preparation to carry
-e law INTO effect resulted IN making
changes IN some thirty thousand bdnKnoJe
plates and the printing OF Asrs,E3.tsH adoi-
1fr7aI Circu alton. which IS held in stock
~ -Ee Treasury ready for issuance y hen
Ere- an emergency shall be declared 70 e1-
as I was 10 justify the heavy Work d.
read done and the expenditure Of conSid-
erl be uouey-Jo say nothing q seven
months debate when The subject was be
fore gougTess-that the present Secretary
of the Tres srIry has now taken steps TO IL
c-ce some o. the financial centres TO equip
themselves with the machinery necesS'1TE
IA X -ne aC- effective IL case i -hol-d
e-zr the future be necessary To resoI Z
- rs provisions. There Is nothing what
~-zr = Nfs action indicative OF the near an
yroach cf such an eulergencT. Ihe acticIl
has been taken solely with the iGeS OF nor
being found unprepaTed II at any time ID
-fe -r-rrr-s conditions should warrant an
issue OF emergency notes It IS tne pru-
le-- thing 70 DO. and any ao.nlnlST STratlol!
-r1-7G properly De subject TO criticism II
ire -larhiner-- for carrying this act INTO
effect were not provided Until the moment
= trouble Already the banks OF New YORK
.l-- have formed an ASSOCIATION. 70 De
known 2 the National Currency Assocta-
-5Cu o. The CITY Of New York e 5ud x ls
understood that other important cities WlL
shortly - Se The same step. L IS Teasci-
at-- certain that associations VIII soon be
formed n FEflaSel-flia- Boston, St Louis.
Fittsllrr-. Cleveland Atlanta and LOUIS
-l= = Is -fIyefy. too thai the Western
sections of TIE country VIII be heard from
r. this respect ard rTObahlv some smaller
centres or s-aogrzuilicz1 divisions VIII or
cs--zs associations