The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1914-08-04
To ISSUE
BILLION
DOLLARS
UNITED STATES WILL ISSUE
THAT AMOUNT OF NEW CUR
LAW IN ORDER TO PROVIDE
AGAINST DEPRESSION.

Washington. D. G., Aug. 3.-More
than a billion do lars in currency will
be added to the circulating medium
in the United States by the action of
congress today to meet the situation
resulting from the European crisis.
This new currency. backed by prime
assets of banks, may be issued under
modification of the bank law,
passed in both house and senate,
then compromised in conference and
approved by the administration for
final action in both houses tomorrow.
All national banks and all state
banks and trust companies members
of the new federal reserve system
and those that have agreed to join
may issue notes under the Aldrieh-
Vreeand section of the bank law up
to % per cent of their combined
capital and surplus.
There is approximately $1,760,000,-
600 such capital and surplus on
which issue of notes may be based.
OF that about $500, 100000 invested in
government bonds is not available.
Approximately s900,000,OO0 plus 25
per cent, therefore, is ready as a
basis of issue. Bankers told admin
istration leaders the issue available
should be more than enough to care
for any situation.
The senate imposed a further con.
dition that banks shall deposit with
the government against the new is
sue a gold reserve OF not less than
5 per cent, and that the new notes
shall be apportioned geographically
to care for local banking needs and
industries.
As originally proposed by the sea-
ate banks might have issued up to
the former limit of five hundred ".
lions. The house today removed ali
restrictions as to amount. The sen.
ate, thing limitation wise, amended
the proposal to limit the issue to
combined capital and surplus and the
extra % per cent was added in con-
ference as compromise.
Hundreds of millions of new notes
are ready for the call of the banks,
shipments to financial centers have
begun and the bureau of engraving
and printing is making more night
and day.
Further relief for the situation was
expected by the organization of the
federal reserve board. Paul M. War
burg's delayed confirmation was ad-
valced by his examination in the
banking committee today and Chair
man Owen predicted favorable re-
port.
President Wilson has selected bis
nominee for the place of Thomas d.
Jones, but will not disclose his iden-
tity until the man accepts.
The financial position of this coun-
try to all appearances tonight was an.
preciably better than "A hours ago.
Prompt relief measures composed a
situation which for a time threatened
to become ominous and bankers who
'ast night admitted the outlook was
troubled expressed confidence to-
night that the energetic steps taken
would meet all needs.
The same opinion was expressed
by John Shelton Williams. comm
troller of the currency, who spent the
day at the subtreasnry. AT the close
of the day Mr.. Williams said all was
serene.
TIRE finaLcos Of the country" ha
added, ARE in exce,is / shape. We
have the situation well in land. All
the currency that is necessary is ii
circulation at this aima.
There probably never was another
day in the history Of the country IN
which such a variety of comprehen-
sive measures was rut into force.
Banks OF large cities throughout the
country decided to issue clearing
house certificates u furnish addi-
tional medium of clreuIatioa IN settle
ment of transactions amcng anks.
Many millions of do';ars Of Aldrich.
Vreeland emergency currency were
shipped to financial centers. The
recent enormous outflow of gold to
Europe was believed to have been
stopped effectually. 1t toak several
hours of rapid work this mor1ing /,
put these steps into operation
Until that had been accomplished
the financial district was under a
strain, but as the hours passed with
out serions difficulties the tension
relaxed until at the close Of the cav
cnNIINIIIEn ah pA0E raALo