Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-08-13
Frank A, VanderIip, President
of National City Bank, Sug-
geStS Suspension Of All Re-
serve Requirements.
FINANClERS FEAR 1T
WOULD DRAIN COUNTRY
Gold Might Take Flight and
EntangIements Result From
Inability to Maintain Specie
Payments,

lsv soHNina JovsnsI srsc,At lsAssn wisel
New York, Aug ie--i'or the SET
tlcmcnt OF the country's international
obligations, radical steps were pro-
posed today hv New York bankers
one suggestion which was laid imme-
diately before the federal reserve was
the suspension of the provisions VI the
law regarding reserve requirements
for national banks An alternative
plan was the enactment Of legislation
by congress permitting banks to count
national bank notes IN their reserves
In either case the result would be to
lessen the amount Of gold the banks
must hold and enable them to ship
gold from the country.
Nandcrlip Proposes PIan.
Frank A. vanderip president Of the
National city bank. tclephoned to
Washineton 10 Charles s. lIamlln.
governor of the federal reserve board.
presenting the suggestion that the re-
serve requirements be suspended. n
the board thought Il feasible. and
asked II It were possible to take such
action at the present time before the
machinery created under the new law
had been put into operation. Mr..
iIamlin said. according 10 Mr. Van
dcrlip that the matter would be
brought before the board
Might Drain Country OF Gold.
These matters we're brought up at
a meeting of q special committee Of
the New York chamber of commerce.
attended by Mr Vanderlip. J. =. Nor
gan. Jacob II Sohiff. u. r. outer
bridge. Seth Lsw and others. When
news Of the plans discussed by this
committee reached the financial world
fear was expressed that the result of
any such action would be to start once
more the drain on the cuuntrya gold
supply, which was leading
cnuse Of the recent unscttlment Of the
icountry's finances. The proponents Of
the plan however, felt there WAS no
danger Of such result ono nter=
probation placed upon the proposal
to include bank notes in legal reserves
was that II would mean the suspen-
sion of specie payment Mr.. Nander-
lip characterized this MS entirely un-
true.
Two Million Dollars Due Creditors.
Al the meeting today It was said
iis; ahaui two million dollars was im-
mediately due European creditors.
Members Of the committee expressed
the opinion that, whereas, II had re-
Gently been impossible to settle for
olgn obligations IN gold owing to the
interruption Of transatlantic sailings.
and other, conditions brought ON by
the war gold payments were now pos
slhle at least to English creditors. by
reason of the Arrangement whereby
Bank Of England gold y to be held In
trust bY the Canadian minister OF IL
nance At Ottawa, thus obvating ship
ments across the Atlantic.
sountry's Integrity Jcopnrdixcd.
There WAS no further reason. II was
held. why obligations mot covered hy
the moratorium Ia England should not
be met Some Of the bankers took
the position that to refuse 20 make
these payments III gold would be q re-
Election on the country's integrity and
would damage lts credit abroad. Mr..
wax asked 10 draw an
amendment to the bank act to be sub
nitted to congress enabling the banks
% count bank notes as part Df their
eeercs. After this proposal had
cen made Il was suggested TINT such
otion might he unnecessary since the
rderal reserve act gives the board
lower to suspend the reserve re-
utroments for thirty days and longer
/ deemed advisable.
Rreard plan ~ Dangerous.
II was then decided to lay the whole
natter before the board and Mr.. VAN
eflip was designated td act for the
Mir Nanderlip said that
hank netes should be used as part
f the reserves 1t was probable that
niy g small percentage of the re-
'tvcs say 10 per cent would be
rus made M
ghe opinion wsx expressed Ii the
hanrial district tonight that any
cps loeking toward the expectation
considerable sums of gold would
rect With strong opposition here,
ankers who favored the action said.
s~eeef that should the pnn be
iepted there would he IA their opin-
n na heavy exportation 81 gola, since
,eumulatlng English credits wouid
nviized far payment of American
sin and other exports
oglaef Developments of the day In
Gated steady improvement Ia finan
81 affairs stock exchange authori-
IS made a ruling permitting the pnr-
lase of sale Of securities for cash hus
airing marginal transactions. The
ones market VAS still dull. Bids OF
nae loans, With few offerin1M Ther6