Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-08-02
LIFT BARS AGAINST
FINANCIAL CRISIS
New York Bankers Start Re-
lief Measures to Preserve
Confidence.
EMERGENCY CURRENCY
SOON WILL BE ISSUED
Advance of 500. 100000 Credit to
England to Be Suggested
to Wilson.

NEW YORK. August Extra ordinary
action was taken by the leading financial
interests of America today TO avert finan-
cial unsettleInent in this country as a
result of the European war. Relief
measures are under way, which in the
opinion of bankers will preserve the
public confidence. This Is the situation:
Emergency currency probably will be
put into circulation next week II occa-
sion requires this currency, issuance of
which is provided for by the Aldrich-
Freeland act passed after the 1907 panic,
may be supplemented here and elsewhere
by clearing house certificates such as
were used in 1907.
Representatives of New York foreign
lngton to hold Sunday conference with
PRESIDENT Wilson. They planned to sug-
gest the unprecedented procedure of ad-
vancing s1oo.oooooo credit to England
Bankers from the principal cities of
tho country arranged meeting to be
held in Washington Monday to formulate
q plan of action.
Day of Great Activity.
II was day of strenuous activity. not
uumixed with anxiety. for the bankers
of New York The European crisis de-
mcralized the financial markets of the
world week ago. and the intricacies of
modern finances are such that upon
America. isolated from the perils of war.
fell full share of the burden Liquida-
ton of American stocks by European
holders not only upset this stock mar
ket so completely that it was compelled
10 suspend business. but raised another
serious problem. That problem was to
pay Europe for the stocks sold here
1t is estimated by representatives of
foreign stock exchange houses that from
S10O,0oo,Oo0 to $50, 100000 worth of Amer
lean stocks were thrown on this market,
for whatever they would bring. by panic
stricken European holders. Canada also
unloaded stocks here to a large extent.
Millions on Sea in Danger.
Next week the bills drawn against these
sales of stock will reach New York. Part
Of the S4o.0O0ooO gold shipped abroad on
vessels now on high seas is in danger OF
capture. Even these shipments leave a
huge total of foreign credits to be salts
lied; Today's statement of the New York
pa. nanks showed in cold print the effect of
me raid upon the American supply of
Sold There was decrease in cash hold
inss of more than $4,000 900. due prin-
cipaily to the loss of gold. and in place
e.
ported last Saturday there was today
deficit of S17,0OO0OO
To meet these foreign claims without
er,ous encroachment upon available
naiclal resources, the bankers of New
ork We're forced to take decisive action
ncertalnty as to what Developments
.hsht result IN the world of finance from
ne upheaval in Europe and doubt as TO
me erect upon American public senti-
nent made it imperative. in the on;nion
~ bankers. that added precautions, be
taken TO safeguard the situation
Bankers in Conference.
Early In the day there was a confer
ence of some of the leading bankers of
New York. Later there was meeting
Of the National Currency Association Of
the city of New York. an organizat;o
provided by the Aldrich- vreeland law
At this meeting arrangements were COM
pieteo Tor issue of emergency currency
next week. Detailed Instructions were
given as to the manner in which this cur
rency might be obtained. When the meet
ing was called to order it had before il
applications for a substantial amount of
national bank notes such as NAV he is
sued under the law.
Although the possibility of issuance of
emergency currency has been discussed
quietly in Wall street, the action of the
New York association gave the first
authoritative Endorsement to these re-
PORTS.
Vanderlip Makes Statement.
To give assurance that the steps taken
would amply meet the needs of the situa-
ton, and that there. was no occasion for
apprehension, the following statement
vas made tonight by Frank A. Wander
lip. president of the National City Bank
The action of the New. York Currency
association in getting all the machinery
TeSdy for the issue OF additional bank
notes should give assurance that there
viii be no lack of an ample circulating
medium. 1t is now possible to create a