The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-04
CONFEREES AGREE ON
$1,125,OOO, ISSUE
House and Senate Will Amend
Emergency Currency Act
To-day.
STATE BANKS INCLUDED
Limit Fixed at 125 Per Cent. Of
Unimpaired Capital and
Surplus.
STATE BANKS INCLUDED

WASHINGTON, Aus 3.--Another inpor-
tant step toward safeguarding the coun-
try in the financial situation growing out
OF the European war was taken in Con-
gress to-day.
After the House had amended and
passed the Aldrich- vreeland emergency
currency act 50 ms to make II possible
to issue unlimited emergency notes the
House and Senate conferees met to reach
an agreement
The Senate wanted 20 limit the issue
to 100 per cent OF the unmpairsd capt.
tai and surplus OF all national banks in
stead OF tho $500. OoO. 900 authorized in
the original act. The House urged that
there be no limit
A compromise was reached by which
the banks will be permitted to Issue emer-
gency notes UP to 125 per cent of their
un.mpaired capital and surplus This
would mean an issue OF si,125. 900 on
a basis Of $500, 900, 900 unimpaired capital
and surplus.
The conference report will be submitted
to both houses tomorrow and undoubt-
edly will be adopted. The bill probably
will be In the Presidents hands tomorrow
or Wednesday.
This action was taken at the request of
Secretary OF the Treasury McAdoo and
has the approval OF New York bankers.
The opinion was expressed by officials to-
night that II will greatly strengthen the
| situation. especially in extending the emer-
gency currency privilege to State banks.
Mil Ne Agreed Upon.
The bill as IL emerged from the con-
| q 4. - fl4a
| Treasury TO require the banks applying
| for currency under the act TO maintain
| "A gold redemption fund OF not less than
| per cent. II IN his Judgment such fund
| he necessary for security.
| II also provides that State banks and
| trust companies which are members OF
the Federal Reserve Association or which
may apply for such membership within
the next fifteen days. may have the privi-
lleye OF Issuing emergency circulation.
Under the original &C; State banks could
not exercise this privilege.
| II the state banks ana trust companies
avail themselves of the privilege. the
total OF the emerge 1cy circulation may be
Increased above the figures stated above.
which are based upon the national banks
capital and surplus.
The authorization to the Secretary OF
| the Treasury to waive the requirement
that banks applying for permission 20 Is
sue the emergency notes must have 40
per cent OF bond secured circulation out
standing was retained in the bill.
The House passed the bill after amend
ing II by a vote OF 23i to G. The negative
votes were cast by Murdoch of Kansas,
Bryan OF Washington. Kelly and Ripley
OF PENNSYLVANIA and Mcdonald OF M!chl-
CANAL Progressives-and Lindbergh OF
Minnesota. an independent Republican
Speeches Patriotic.
The speeches were al! pitched In a patri-
otlc key when delivered IN favor OF the
bill, but Representative Murdoch took oc-
casion to attack Wall Street, following
which he forced a roll call on the bill
In contrast with Mr.. Murdocks atu-
tude was that OF Representative Mann.
This is no time for partsanship," he
declared Let us all stand together In
this hour for tho good OF our people and
of our country"
Mr.. Mann's speech was cheered wildly.
Secretary McAdoo said tonight that
no occasion exists for the exercise by him
OF the discretionary power vested In hin
by the amendment to increase the limit
OF issuable currency
Only s45,OOO,0 900 OF the Aldrich-Nree.
land currency has been sent to New
York and more will not be sent until
this is drawn upon heavily Some OF the
currency has been sent TO St Louis
Chicago and Philadelphia
The Department is going forward with
the distribution OF the ga, 900, 900 prom
ised to banks of the South and West for
tho crop movement period. No appeal for
an increase of this fund has been made.