The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1914-08-03
AMERICA
PREPARES
FOR PANIC
U. S. GOVERNMENT TAKING EV-
ERY PRECAUTION TO PREVENT
A MONEY PANlC-NEW YORK
BANKS PROPOSE TO ISSUE
EMERGENCY CURRENCY.

New York, Aug. 2.-William G. Nc
Adoo, secretary Of the treasury de
partment. came to New York tonight
on instructions from President Wilson
to assist financial interests to avert
a crisis. With Mr.. McAdoo were
John Shelton Williams, comptroller
of the currency; Charles S. Hamlin
and William p Harding, members of
the federal reserve board. Far into
the night they discussed relief meas
ures with a group of leading bankers
The New York clearing house COM
mittee today called a meeting of the
Clearing House Association to be held
before banking hours tomorrow and
arrange for the immediate issuance
of clearing house certificates.
Banks of New York and other large
cities completed arrangements to
take out many millions of dollars OF
emergency currency tomorrow.
recommendation were made that
of this state enforce the sixty day
clause empowering them to decline
| to pay out money within that period
to depositors.
The United States Savings Bank As
sociation will meet before banking
hours tomorrow and it was understood
tonight that the sixty day clause
would go into effect.
Many of New York's foremost fl
nanciers attended tonight's session.
They included J. P. Morgan and his
partner, Henry p. DAWSON; Frank A.
Vanderlip. president of the National
City bank, and A. Barton Hepburn,
chairman of the Chase National bank.
The recommendation to be made
by the clearing house committee to
the association to Issue clearing house
certificates was regarded here tonight
as virtually certain of adoption.
These certificates, while not legally
current, were approached during the
panic in 1907 by the banks in settle
ment OF transactions among them
selves and in some cities were circu
lated in lieu of lega 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
The present situation, it was ex.
planned, was brought about by a num-
Der Of causes. For months business
has been backward and capital timid.
Then came the shock of the European
crisis, whose first effect was to de
moralize the financial markets of
Europe resulting in the suspending
of the words leading stock eX-
changes, including the New York ex-
change. An important added cause
of disturbance here was Europe's
enormous demand for American gold.
Last week these exports were we'll up
to 100000 000. The probability that
with the old world in a frenzy there
would be a severe reaction upon COM
meree and industry here as we'll as
a troubled state of public sentiment
made the outlook still worse.
This was the situation today and
when news was received of the final
crash in Europe with all of the prin-
cipal nations at war or on the verge
of it, realization came that energetic
measures must be taken to safeguard
American financial interests.
Bankers were in conference
throughout the day. During the MORN
ing the wires to Washington were
kept in use almost constantly aad
after the president and Mr.. McAdoo
had been informed of the views of
the New York bankers it was decided
that the situation was such as to de-
mand the presence of the Washington
officials at the financial center. Be
fore they left the capital special
telegraph wire was installed in the
sub-treasury with direct connections
with the treasury department.
At the same time a meeting of the