Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-06-12
NO MONEY
SHORTAGE HERE
Bankers Unable to Understand
McAdoo's Offer of Funds
at This Time.

With $500. 1000, 900 subject to their
call the local national banks find
there is no stringency in the money
market at the present time.
The $500, 0O0,0 900 which is available
to the national banks in this city is
in the form of emergency currency
which Secretary of the Treasury Nc
Adoo says he will issue to any ma
tional bank qualifying for its privi-
leges under the Aldrich- Yreeland act
of 1908.
The local bankers who could be
reached today said there was nj rea-
son for the local banks to draw on
the emergency. currency. There is
nothing in the money situation in
this city at present which would
make this action necessary, accord
ing to the statements of the presi-
dents of the majority of the local
banks.
Those who would comment on the
statement of Secretary McAdoo said
they were at a loss to explain his
reason for assuring the banks just
now that they could call for share
of the emergency currency, if they
found a need for it.
Il cannot understand just why Mr..
McA doc felt inclined to call the at
tention of the banks at this time to
the provision of the Aldrich Vreeland
bill, which has never yet been put
into operation said one of the lead
ing bankers of this city today
There is plenty of currency out
| just now and instead of signs of a
shortage there are indications of a
superabundance of the circulating
medium. The surplus is now much
larger than it was two weeks ago in
this city. Call money has been piling
up so rapidly that the market has
been brought to a condition of greater
ease than has prevailed in over
year"
Call money can now be obtained In
this city for as low tax as III per
cent.
Mr.. McAdoo announced last night
that he would not hesitate to issue
emergency currency up to the limit
of the amount prescribed by law to
any national bank or currency asso-
citation making application for the
money.
His authority is based on the
Aldrich- Vreeland bill, which has been
on the statue books for five years,
and has never yet been put into oper-
alton. The amount of the additional
national bank notes that may be put
into circulation under the terms of
the act is 100000. Notes for this
amount are now in the vaults in the
treasury.
The surplus currency is exactly like
the existing national bank notes, and
If it should be issued there is nothing
in the appearance Of the notes or in
the manner of their delivery to indl-
cate that they are special currency
under the Aldrich act,
The surplus currency is not issued
to individual banks but to national
currency associations having total
capital of $5,000,000. Not less than ten
banks can form an association, which
must be Incorporated.
The act provides that national
banking associations having circu-
lating notes secured otherwise than
by bonds of the United States, as
emergency currency notes, shall pay
for the first month a tax at the rate
of five per cent. per annum on the
average amount of such notes in cir
culation and afterward an additional
tax of one per cent per annum for
each month until a tax of ten per
cent. per annum has been reached,
and thereafter a tax of ten per cent.
per annum upon the average amount
of such notes.
william Scheerer, president of the
Union National Bank. said the law
was meant more as stop gap than
anything else.
TT would be mighty handy in case
of an emergency" he said, "and for
short time, but after a month or
| two there would be no profit for the
bank. The act serves to maintain a
| financial level because the banks
| know that they can fall back on this
currency if necessary