New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-01
Wilson and McAdoO Have
Law Amended Making 1t
More Easily Available.
WARBURG YIELDS TO
HELP RESERVE BOARD
War Cannot Feaze u. $, with
$I,5OO,0O0,O00 Gold and Sill
yer in Treasury, It's Said.
rFrom The Tribune Bureau

concerned in an effort to check any up
heavals in business. and II was an
nounoed to-day that the Treasury De-
psrtment would render all aid possible.
Firft The President took steps -
brina about an immediate completion
of - organization Of the Federal Re-
serve Board in order that the new cur
rency law may become effective.
Secretary McAdoo, expressing sp-
proval Of the closing OF stock e%-
changes throughout the country, issued
statement announcing that SoOO,-
600 900 issue Of emergency currency
waiting at the Treasury Department
would be made immediately available
20 the national banks. Funds Will be
deposited in New York. Chicago, Phila-
delphia and other cities.
To make more easily accessible this
half billion of emergency currency,
authorized by the Aldrich- Nreeland
act. the Senate late in the day, at the
suggestion of Mr.. McAdoo, passed
unanimously an amendment to the cur
rcncv law modifying the clause pro-
vidinc that banks Of national cur
rcncv associations in order to avail.
themselves Of the issue must have out
standing currency notes secured by
bonds Of the United States 10 al
amount not less than 40 per cent Of It's
capital
Gives McAdoo Discretion.
The amendment would give the See
rotary Of the Treasury authority IN
his discretion 20 ignore this restric-
ton. II viii be passed early to-mor-
row by the House and probably will be
signed by the President before night.
TO hasten the perfecting of the Fed
cral Reserve Board il was made known
al the White House that President
Wilson would send 10 the Senate to-
morrow the name of his choice of a
successor 10 Thomas ID. Jones. Of Chi
oago, whose nomination was with
drawn.
The tense situation also brought to
immediate action Paul NJ. Wsrburg, Of
New York, who had been for weeks
holding back from an examination by
the Senate Committee on Banking and
Currency Mr.. Wsrburg notified the
President that he would come to
Washington at once, and telegraphed
to Senator Owen, chairman Of the
B~Rking and Currency Committee, as
fellows:
I'm Difference 20 the Presidents
urgent request and in view Of the seri-
BUSINESS Of the present emergency,
which renders desirable the promptest
possible organization OF the Federal
Reserve Board have decided TO waive
All personal considerations and AM
prepared to appear before your com,
mittee at the earliest convenient date.
Mr.. warburg Yields.
After another exchange of messages
IA was arranged that Mr. Warburg
should appear before the committee
tomorrow afternoon. In the mean
,It;rne the name OF the other member
will be submitted to the Senate. IL
was believed tonight that Edwin A.
Potter. Of Chicago. would be chosen:
Mr.. Potter is a well-known banker OF
wide experience and Republican.
Official Washington was unusually
optimistic of the general financial out
look in the United States. Secretary
NcAdoo had no worries over the eN-
portation of American gold. though he
approved heartily the closing OF the
stock exchanges in order TO check 1t
He referred TO the patriotism of the
bankers Of the country, who, he felt
assured. would not permit exchanges
that would be disadvantageous to the
nation.
"Anerica is in a position TO take
In the Senate optimistic notes were
sounded on all sides, regardless OF
marty Affiliations. and Senator Nelson
Of Minnesota, dramatically exclaimed:
''In Europe they mobilize armies and
navies; in America we mobilize bank
reserves"
The Senate paused only long enough
TO allow several Senators TO praise the
banking and financial conditions and
to exrlain that the measure was passed
merely as a precautionary one and not
because of any pressing present ne
eessity.
Europe is in a crisis" said Senator
owen, i'm presenting the measure. "The
great central banks of France and Ger
many and England have practically sus-
PENDED specie payment. Something
should be done TO prepare this country
to meet any emergency that may
arise
Not a "Panic Measure
Senator Smoot said the bill should
not be taken for "panic measure,
and said that the Treasury and the
banking business Of the country were
I'm q splendid condition TO meet any
emergency"
"There is in the Treasury $1,500,000,
600 in gold and silver" Senator Owen
added, $3.50 100000 in the gold re-
serve and si30,O00,000 free gold in
the general fund These immense
funds, with 100000. 900 emergency cur
rency available. would enable this coun'
try TO face any financial crisis"
"-ye are keeping in close touch with
the situation" said Secretary AcAdoo
The Treasury Department will help as
Tar AS il lcgitimately may In New YORK.
or i'm any other part of the country
where il becomes apparent that assist
ance Is needed.
"The Aldrich-NTeelsnd act, as amend.
cd by the Federal Reserve act, is sui
in force and the terms upon which cur
rency may be issued under that act sre
now so favorable that resort may be
made quickly and effectively to. 1t 70
meet any emergency. II must be re-
membered that there is in the Treas
my. printed and ready for issue. 5000, =
fO6. 600 of currency which the banks can
get upon application under that lay:
This is in addition TO the resources OF
the Treasury.
Gold Bars for New York.
"In view of the closing Of the for.
eign stock exchanges, the action OF
the New York Stock Exchange in clos
ing temporarily, is a reasonable meas