New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-02
Requests for Notes Under
Vreeland Act Already
Received.
'- r-----
AMOUNT SUFFICIENT
TO MEET DEMANDS
Issue of S500.000, 600 Will
Make All Sound Assets
Liquid.
NO 1907 REPETITION
Vanderlip Thinks Government
Can Handle DiSorganized
Financial Situation.

As result Of the announcement oy
the executive committee of the Ns-
tional Currency Association OF the
CITY OF New York late Friday that all
Arrangements have been made Tor the
. hanks Of this city TO take advantage
a. the Aldrich-Nreelsnd act, permit
ting them 70 obtain part Of S5Oo,OOO'-
600 emergency currency, which mas
been held in reserve for just such pc
RODS OF financial stress as the pres
ent. applications we're considered yes
terdsv bv the committee for a sub
Stantial amount OF the national bank
mites which NAV be issued under the
provisions Of the act.
The committees meeting held at the
CLEARING House at l o'clock. was at
..rG.d bv Frank A. Nanderlip, pres
dent of the National City Bank and
president Of the National Currency
Association Of this city; Richard Del
s6sId. president of the National Park
Bsnk. Gates W. McGarrah, president
of the Mechanics and Metals National
hank. James S. Alexander, president
Of the National Bank of Commerce
and f. Townsend, president Of the I'M
porters and Traders National Bank.
VAnderIip Makes Statement.
Mr.. Vanderlip issued a statement
m which he said II was expected that
8 sufficient amount of the emergency
notes can be issued TO meet any de-
rands likel- 10 be made for circu!st-
;rg media because Of the enormous
amount Of American gold that mas
recently gone abroad and because OF
the capital that is temporarily tied
up from the closing Of the Stock Ex-
change. His statement IN full FOL
lows:
at 2 meeting Of the Executive Com
nnittee Of the National Currency Asso-
ciatior. held at the Clearing House yes
terday afternoon, applications were
considered for a substantial amount Of
rstional bank notes which may be Is
sued under the provisions Of the cur
rency act. All the machinery for rapid
action under this act is In readiness.
and il is expected that sufficient
amount Of these notes can be issued 70
meet any demands likely 70 be made tor
circulating media. Large amounts O.
the notes are now printed, and II is eX-
Dccted that the notes for New YORK
banks will be forwarded TO New YORK
and lodged with the Sub-Treasury here
so as 10 be Immediately available Tor
use.
"Tnder the terms of the law, ma
tional banks are permitted TO take OUT
additional national bank notes up to
an amount equal to the capital ano
surplus Of each bank, although there Is
total limit Of S500,0O0,0OO upon TINS
form of additional currency. Banks
NAV deposit either commercial paper
or securities with the Currency Asso-
citation Committee. The committee
masses upon the character Of the col
lateral. and il is also passed upon by
representatives of the Treasury. Com
n,srcial paper may be deposited for ad.
ditional notes up to an amount equal
"a 30 per cent of the capital and sdr-
Illus OF bank: or a bank may deposit
securities for any part Of the additional
circulation which II obtains.
Banknotes Already Printed.
"A bank may apply directly to the
Treasury Department without the IN
tervention of the Currency Association
IL IL has state or municipal bonds OIL
approved character which il wishes to
oeposit as security for additional notes
There are already printed a total OF
S524. 900 900 of completed bank notes
ard they are in the emergency vault G.
tire Treasury in Washington.
This law offers perfectly SOUND
method Of converting assets into cir
eulating notes. There need be little
fear. therefore, Of any repetition o.
the conditions of 1907, when there was
so much distress through the inability
OF banks TO supply a circulating me
dunn. The banks Of the country unoer
this law may take out S50O,OOO,OOO ad-
ditional national bank notes. There IS
no probability that anything like that
amount will be needed or could be
used. but the banks are in position
20 make their assets liquid and to meet
demands upon them in a perfectly
satisfactory manner by increasing
their national bank notes under the
provisions Of this act. The act pro-
vides a true expanding currency, and
IL is most fortunate, under all existing
conditions, that il is available Tor the
national banking institutions Of the
country.
Circulation Demand Great.
always at this crop moving season
there is q demand for a large amount
OF additional circulation, and it IS no.
improbable that under the serious
strain that the European situation has
put upon us there may be more than
an ordinary demand for money for
circulation: and while the financial
condition Of the country is sound and
pre-eminently strong in the world TO-
day, nevertheless il has been deemed
wise TO get this effective machinery