The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-08-01
STEPS TAKEN TO
SAFEGUARD MONEY
SITUATION HERE
On Suggestion From Treasury
Senate Quickly Amends the
Emergency Currency Act
Secretary McAdoo
Issues Statement
Government Will Help az Far
as 1t Legiimately May In
All Parts of Country

Warrington. July s1.--The most
tmpresatve OF several steps taken by
the federal government to safeguard
The financial situation in this country
growing out Of the impending
European war was action by the SEN
A&s Amending the Aldrich-vroeiand
Iomorgency currency act This action
WAs taken unanimously by the senate
Ind almost on record time In response
from . suggestion from the secretary
o1 the treasury.
The effect OF the legislation Ia to
authorize tho secretary TO suspend
Temporarily. whenever In his tuag-
ment he deems 1t necessary. the
operation OF the limitation in the
AldYich-Ereelana act by which banks
kppfying for permission to Issue
Emergency calculations are required
10 have bonc-secured bank note cir
culafion outstanding TO the amount Of
70 per cent OF their capitalization.
This amendment will be passed By
the house tomorrow without delay
The introduction OF the amendment
In the HOUSE, and the Immediate action
followed closely on tho heel Of a
DfAtemcnt by tho department an
bouncing the $500 900, 900 emergency
Avaiia bic under the Aidr.ch &C. IS IN
rcadiness IN the treasury vaults to be
ISSUED TO the banks OF the country
1f they deatre 1t. 1t was made plain
that this step was taken merely as q
Precautionary measure and to guard
kgasnst any depletion Of the reserves
bf the banks pending the ;naugura-
hon OF the currency system.
No Emergency Yet
Secretary McAdoo made II plain
that hts announcement was not made
~ the request OF any bankers for
khe Issuance OF emergency currerc
1t this time.
The amendment to the .Aldrich-
str~@iana act vas suggested by The
treasury department In response 40
Representations frcm many OF the
banstaa Institutions n New York and
kfa.r large cities There was not
Dissenting voice In the senate
Sealizing the world crisis. senators
Tor the moment forgot politics, Even
enstur Smoot. a stalwart Republican,
who aav after day In the senate has
beer calling attention to the depressed
kcn$aitlon ~ business throughout the
apgasN. today touched an optimistic
thorfi Gna while the Democrats sat
kaa,iirS no senator from Utah told his
colleague. upon what a solid basis the
banking OF the United States WAS being
(srr1ed.
senator Owen Explains.
Senator Owen explained. In present.
hg the bill. that many OF the larger
Sanks, IL. view Of the approaching
lew currency system. had reduced
heir circulation far below the 20 per
(ent requirement because they found
ther uses for the bonds than the pur-
losA OF circulation and II would be
imCult now for them to procure the
PONDS to qualify under the act a. II
lad evixted
~, : N.r "a asaA to<3ar ~ara r%eh nA~-
lon a. OF this federal reserve act.
EArlie- IN the day Secretary McAdoc
lad issued this statement:
We ara keeping In close touch with
~ situation. The Treasury Depart
nent WIN help AZ far Gs II iegittmately
hay In New York and In other parts
e tho country whore It becomes APP
|arent that assistance IL needed. The
Aldrtch- vreoland act a. amended by
he federal reserve act IL still In force
IA the terms upon which currency
1Ay be issued are now 80 favorable
hat resort may be made quickly and
6ectively to it to meet any emergency.
must be remembered that there Ia
tbs treasury printed and ready for
nue. S6oo.ooo.ooo currency which the
1nkD can get upon application under
hat law. This 10 in addition to the
psources Of this treasury.
Upon the closing OF the foreign
ock exchange. the action of the New
ork stock exchange. OF which have
INT learned, In closing temporarily, Is
reasonable measure OF protection to
mcrtcan interests
Situation In London.
London, July 3f.---A meeting of the
representatives OF all joint stock banks
~ held at the clearing house this
rening. After 1t adjourned. 1t was
kpored that II had been determined
pay out ten per cent only In gold.
CONTINUED on Second Page.)