The daily banner. (Cambridge, Md.) 1897-2008, 1913-06-13
EXPLAINS ABOUT
s500,000,000
Statement Of Emergency Cur.
rency Rspiy to Inquiries.
READY At CALL OF BANKS
Secretary McAdoo Declares Situation
In Wall Street Has Nothing to Do
With 1t.

Secretary McAdoo Declares Situation
In Wall Street Has Nothing to Do
With 1t.
Washington, June 13.-Secretary Of
the Treasury McAdoo said his state
ment announcing that $500,000,000 of
emergency currency would be forth
coming should the banks need it, was
made in response to many inquiries
from bankers.
Mr.. McAGoo declared that some o.
the banks were anxious to know, in
view of the approaching time for crop
movement, whether additional curren-
cy would be available. He emphasized
that the Issuance of the statement had
nothing to do with the situation in
Wall street.
Mr.. McAdoo's statement follows:
Secretary McAdoo was asked if any
application had been received by the
government from national banks or
currency associations for the issuance
of currency under the provisions of
the Aldrich-Vreeland bill Of May 80,
1908. He replied that no such applica-
ton had been received.
1.-THE secretary said that the Aldrich-
Vreeland act, passed five years ago,
authorizes the secretary OF the treas
ury to issue additional currency to ma
tional banks and currency associations
upon the security of state and munich
pal bonds as well as government; and
IL bot To orr
rency associations, on high class short
timed commercial paper, as well as on
government, state and municipal
bonds.
"In accordance with the act the sec
rotary of the treasury has actually on
hand $50O,0O0,OOO in new national
bank notes, which can be issued imme-
diately to any national banks or cur.
rency associations applying therefor
and complying with the provisions OF
the act.
"The secretary said that he would
not hesitate to issue currency to any
banks making application and qualify
ing under the act.
1.-THE secretary explained that the
ne wcurrency is, of course, exactly like
existing national bank notes, and that
if such currency should be issued
there is nothing in the notes or in the
manner of their delivery to indicate
that they are special currency issued
under the Aldrich- Vreeland act.
National currency associations have
been organized in various parts OF
the country, from Massachusetts to
California, including the large ci les
of New York, Chicago, st. Louis and
others and are now qualified to take
the benefits of the act. The national
banks and these currency associations
upon compliance with the act may
quickly receive additional currency to
the extent of $500,000,0g0 if they re-
quire it, upon application to the treas
ury department. The Aldrich-Vreeland
act expires June, 1914"
President Wilson already has ex-
pressed his hope that congress WI
enact a new currency law. He believes
that reform of the currency is neces-
sary to offset any depression the new
tariff may occasion. To that end the
president, Secretary McAdoo, Senator
Owen, chairman of the senate banking
committee, and Representative Glass,
chairman of the house banking and
currency committee, have been franz
ing bill. The essential features of the
bill are still mystery to the outside
world.
Senator Owen and Representative
Glass agree with the president that
currency legislation is imperatively re.
quired to assist the country's read.
justment to the new tariff. But when
Senator Owen called his bank and
currency committee together he found
it opposed to currency legislation at
this session.
Those who recall how well the
emergency currency bill served the
country in the uncertain year of 1908
believe that it's re-enactment is ad-
visable irrespective of any other cur.
rency legislation. The reservoir OF
$500, 000, 900 circulation which it made
available for national banks never has
been touched, but the consciousness of
it's existence has been a bulwark of
business confidence.