Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-29
BANKS HERE ARE NOT
TAKING VERY MUCH
EMERGENCY MONEY
Their Reserves So Strength
ened That Demands on
Subtreasury Are Light.
$l0,157,000 Taken by
This City.

| Banks in this city and the country
banks in this district are in very much
stronger pistiin now than at any time
since the closing IL the Stock Exchangen
of the wirld when hostilities I'm Europe
| begari This is indicated by the faat that
| there has been a let-up in the Issuance OF
I emergency currency at the Sub-Treasury
| in this city, particularly in the last three
weeks. The few applications which are
| now coming in are principally from coun-
try institutions Another indication of
the stronger position is the statement of
condition of the Philadelphia Clearing
House members in the last three weeks
showing an increase in reserves.
The National Currency Association of
Philadelphia, which has jurisdiction over
the issuance of emergency currency and
acts on the applications of the banks,
met daily in the first part of August
to act on applications as to whether the
association should recommend the issu-
ance of currency to them and whether
the collateral offered by them was sat
islactory. These meetings have now
are then called only when some applica-
tions are on hand. This week there has
been only one meeting, and 1t is under
stood there may be another before the
end of the week, although it is not now
certain.
Since the first emergency currency was
taken out on August 7. approximately
seven weeks ago. there has been issued
at the Subtreasury a total of s1O157 900 to
21 banks and $4,000 of this amount was
taken out this week. This is an aver
age of S1.45l,00O per week. A majority
of the banks still have a large amount
OF it In their vaults, having taken it out
as a precautionary measure. To meet
the demands for emergency currency
when they We're first made, the Comm
troller of the Currency sent to the local
900 is still in the vaults
THE COLLATERAL DEPOSITS.
Against the total of SO, 157 900 issued
there has been deposited collateral with
the Currency Association to the amount
of approximately s14OOO,OOO, which is
Clearing House. OF this collateral it is
estimated that 60 per cent. represents
commercial paper and the remaining 40
per cent. railroad and other bonds.
1t is provided in the Aldrich-Vreeland
law that currency can be issued to an
amount not exceeding 70 per cent. OF
the cash value of commercial paper de-
posted and to an amount not exceeding
80 per cent of the market value of
State, city, town, county or municipal
bonds The Secretary of the Treasury
has reduced the percentage on State and
municipal securities to So per cent
Secretary AlcAdoo, in accordance with
his campaign against boarding money
and banks charging excessive interest on |
loans, has sent letter to the currency |
associations throughout the country which |
requires them TO secure information from |
applicants for emergency currency as fol- |
lows;. The legal reserve held, rate of |
interest charged on renewals of time |
loans, rate of interest charged on re |
newals of call loans, and the rate of in |
terest charged on new time and call |
loans