Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1914-08-04
By Action Of Congress Fab
ulous Wealth VIII Be Put
in Hands Of Banks Of
Country in the Reserve
system. )
NOTES ARE NOW
BEING ENGRAVED
In Order to Meet Situation
Immediately, Bureau Of
Engraving Is Working
Night and Day Printing
the New Bills.


WASHINGTON. August 3.-More
thln billion dollars of currency
viii be added to the circulating me-
dunn of the United States by action
Of congress to meet the situation re-
sulting from the European crisis.
This new money is backed by the
prime assets of the banks to be is
sued under modification of the bank
law passed in both house and SEN
ate. compromised in conference and
approved by the administration for
final action in both houses tomor-
row.
All the national banks and state
banks. and trust companies which
are members of the new federal re-
serve system, and those who have
agreed to join. may issue notes under
the Aldrich .Vreeland section of the
bank law up to 125 per cent of their
combined capital and surplus. There
is approximately SLIGO. 100000 OF such
capital and surplus upon which the
issue of notes will be based Of that.
SS0O0000 900 is invested in government
bonds and , is not available. Ap-
proximately s900.OO0,O00 plus the 25fo
therefore is ready as a basis of is
sue. Inasmuch as the bankers point
ed out to administration leaders that
issues Of clearing house certificates
in this country never exceeded a half
billion in times of the most dire
stress, the issue available should
more than care for any situation.
One hundred millions of the new
notes are ready for the call of the
banks. and shipments to financial
centers will be begun. the bureau
cf engraving working night and day.
Further relief for the situation is
expected by the organization of the
federal reserve board. Paul NJ. Wa
burg's DELAYED confirmation was ad
vanced by his examination in the
banking committee and Chairman
Owen predicted a favorable report
as not more than three votes are
against him in the senate.
The president selected his nom
inee for the place Of Thomas D.
jones but will not disclose his iden-
/ tity until the man accepts.
Secretary McAdoo had talk late
| today with Festus j. Wade, pcesi-
dent of the st Louis Clearing House
! association. Mr. Wade is understood
to have given assurance that condi-
tons in st. Louis and contiguous
territory are good.
Treasury officials are taking ev-
! cry precaution to launch the federal
reserve banking system as soon as
| the senate confirms two members of
J the reserve board The stage has
been reached where about the only
move necessary before the formal
opening of the reserve banks in the
twelve cities is naming the three di-
rectors of each bank by the reserve
board, renting proper quarters and
the employment Of the necessary
clerical force.
! The currency to be used in the
rev system has not been actually
printed but the designs have been
submitted and ready for approval
and the actual work of getting out
the bills will require but A compare
/ lively short time.
! Orders restricting the amount of
! money orders to be issued to Euro
pean points will be issued probably
tomorrow. This was announced by
| Postmaster General Burleson tonight
after conference with Secretaries
McAdoo and Bryan.
| 1T is the intention of this depart
I