The Birmingham age-herald., 1914-08-03


 unforeseen developments tl,e consent oi the Senate to the confirmation will not be long withheld.
 It was said tonight that Secretary Nc Adoo might decide to confer with the representatives of the clearing house as- sociaticns in the central reserve cities, New York, Chicago and St. Louis in New fork in stead of at the treasury. Heads of the St. Louis and Chicago commit tees were understood here tonight to be on their way to Washington
 President Wilson tonight decided to cancel all engagements dealing with ap- pointments for the next few days and to make none for the next few weeks, which do not concern the war or the fi- nancial situation of the country
 Harding Discusses Relief Measures
 New York, August 2.-William G. McAdoo, secretary of the treasury department came to New York to- night on instructions from President Wilson to assist financial interests to avert crisis. With MT. McAdoo were John Skelton Williams, comptroller of the currency, Charles S. Hamlin and William P. G. Harding, members of the federal reserve board. Until far into the night they discussed relief measures with a group of leading bankers.
 The New York Clearing house conl- mittee today called a meeting of the Clearing House association to be held be- fore banking hours tomorrow to arrange for the. immediate issuance of clearing house certificates.
 Banks of New York city and other large cities completed arrangements to take many millions of dollars of emer- gency currency tomorrow.
 Recommendations were made that the savings banks and private banks of this state enforce the 60-day clause, empow- ering them to decline to pay out money within that period to depositors The New York State Savings Bank asso- clation Will meet before banking hours tomorrow, and 1t was understood tonight that the 6o-day clause would go into eff feet.
 Many of New | ks foremost 6nan oiers attended tonights conference. They included J. P.- Morgan ana his partner Henry r. Davidson, Frank A. Wander lip, president of the National City bann. and A. Barton Hepburn, chairman of the Chase National bank
 The present situation. # was exnlai,ea was brought about by number or causes For months business has been backward and capital timid.- Then came the short of the European crisis whose 1lrst effect was to demoralize the finan clai markets of Europe, esulting in the suspending of the worlds leading stock eNchanges, including the New York ex cnange' An important and added cause Of disturbance here was Europe's enor- nous demand for American gold Tast week these exports were well up to s5O oVo,Wo The probability that, with the oio world Tn a frenzy, there would be a severe reaction upon commerce and in- oustry here as well as d troubled state or puphc sentiment made the outlook still worse S''
 Special Wire Installed
 ihls was the situation today and when news was received of the final crash Tn Europe with all of the principal ma tions at war or on the verge of it, realiza- .ioh came that energetic measures must De taken to safeguard American finan- cial interests.
 Bankers were in conference throupb. out the day. During the morning the "res to Washington were kept in use al- most constantly and after the President ana MT McAdoo had been informed of the views of the New York bankers if Was decided that the situation was such as to demand the presence of the Wash lngton officials at the financial centar Before they left the capital a sneoiaI telegraph wire was installed in the suh- treasury with direct connections wifi, the treasury department.
 Al the same time a meeting of the executive committee of the national .c,,r- iency commission and the clearing house hihiittee was Tn session. The proposal to issue clearing house certificates mel wlth opposition both on the ground that IL was unnecessary and for the reason ,hat IL might create alarm The oppo- hehts 10 the plan were won over, how ever, when news came of the commence Hent Of hostilities by Germany. France and Russia. "''eo
 Eahkers considered it highly improh- apie that the outpouring of gold to Flu rope would continue of for no other re,- son than 1t would be almost impossihIe to ship it with any degree of safety Assurance rates last week were almost prohibitive and it was assumed that tha insurance companies would refuse to take on further risks under present con ditlons. 'o"-
 McAdO0 Issues Statement
 The conference between the Wash iineton officials and the bankers was m session until midnight At it's close secretary McAdoo said:
 Arrangements were prefected for the issuance by New York banks of $loo,o00,Oo0 of additional currency. If required to enable them to respond Jto calls or correspondent banks for money to meet the demands for crop movinp | intend to permit the issuance of simi Tar currency to banks in other sections or the country upon their application 10 the treasury department and their compliance with the provisions of the act" '"e
 The secretary prefaced his statement by saying he had come to New York Tor a conference with the leading tapkers about the issue of emergency currency and for a discussion of the measures for protection of the country's gold supply.
 He added that the country was in splendid shape and that with proper precautions it should be possible to overcome the difficulties of the present situation.
 Clearing House Certificates
 The recommendation to be made by the ton to issue clearing house certificates was regarded here tonight as virtually certain of adoption. These certificates, while not legal currency. were accepted during the panic of 1907 by the banks in settlement of transactions among them selves and in some cities were circulated in lieu of legal tender
 New York bankers were emphatic in their statements that there need be no fear of disastrous developments. The position of the banks of the country as a whole it was said. was fundamentally strong.