New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-05
MONEY IN VAULTS,
BANKS NOT PRESSED
Only $l5,433,0OO of Vree-
land Act Deposit Taken
from Treasury.
CITYS FINANCIERS
SEE FUNDS IN PLENTY
No Emergency Currency as Yet
Used in Settling Clearing
House Balances.

Ten New York national banks that
he'd previously made application at the
Sub Treasury for part Of the $4,000
600 emergene% currency deposited here
under the provisions Of the Aldrich-
Vreeland act yesterday received Sl5,-
$4,000 Of the banknotes.
Assistant Secretary OF the Treasury
Hamlin. who was in charge, said none Of
the banks had applied for it's full share
Under the unamended provision OF the
law. which permitted only those banks
having ar amount equal TO 40 per cent
of their capital stock and surplus in
circulation secured by United States
government bonds to take out the ad-
ditional money available.
Now that both houses Of Congress
have passed amendments removing this
restriction. as we'll as extending the IS
sues of the currency 10 l25 per cent OF
the capital and surplus Of the banks
IL IS expected that, beginning to-day,
the distribution will be made on much
larger scale.
While many Of the banks have had
their applications in for the full
amount OF currency 10 which they were
entitled under the Vreeland act, the
lending changes in the law in the SEN
ate and TIE House have prevented any
actual Withdrawals from the Sub
Treasury.
The new currency distributed yester-
day, should the banks so decide. could
easily be put into circulation to-day. II
is not expected. however, that this Will
be the case. as the demands on the
banks reserves up 20 the present time
have not been so great that they could
not be met without calling in the ad-
ditional money provided by the Treas
ury Department.
The position Of the banks il that
they should have the emergency money
on hand. to be used only If necessary.
No additional expense is attached 70
holding this money in lieu of eXtraor-
binary demands, as no interest IS re-
1uired by the government until the
money is actually in circulation.
This is also true Of the Clearing
House certificates authorized BY the
New York Clearing House Association
on Monday to protect the gold reserves
Of the banks. The loan certificates VIII
not begin bearing interest at the re-
CURED 6 per cent rate until the banks
begin TO use them in the settlement OF
their balances at the Clearing House.
The S15.000,000 emergency currency
distributed yesterday did not represent
the total amount applied for by the
New York banks so far. Frank A. Van
Gerlip, head of the National City Bank
and president of the National Currency
Association of the City of New York
said that about S3O,000,0O0 had been
solicited Edward Townsend, secretary
of the association, believed that the
entire S46,0O0,O00 available for local
banks would be withdrawn from the
Suj-Treasury soon.
No emergency currency has yet been
used in settling balances at the Clear
ing House. The opinion prevailed yes
terday that the banks would prefer to
use Clearing House certificates in
liquidating their Clearing House obli-
cations and employ the money author
lied by the Aldrich- Vreeland act for
over-the-counter payments and ship
ments to the interior.