The Union times. [volume] (Union, S.C.) 1894-1918, 1914-08-07
UNITED STATES TO FORTIFY
AMERICAN BANKING SYSTEM,
McAdoo to New York-Secretary and
Comptroller Plan to Meet
Any Situation.


the situation was discussed, culminat-
ed late today in departure for New
York of Secretary McAdoo and John
Shelton Williams, comptroller of the
currency. They have government au
thority to put in operation the plan
by which the national banks of the
country can obtain $5O0,00O,O00 in
currency under the Aldrich- -Vreeland
act. Mr.. McAdoo today declared he
considered the country to be in ex-
cellent shape to take care of itself.
President Wilson also is confident
that any condition which arises can
be met.
Mr. McAdoo and Mr.. Williams will
confer with financiers in New York.
Mr.. McAdoo may return to Washing
ton late tomorrow to meet represen-
tatives of Chicago and st. Loui,
clearing house associations. Inofficia.
circles it was thought any unusual
strain would be manifest first in New
York. Both the president and Mr..
McAdoo were anxious that the high
est government financial authority be
found.
The treasury today shipped about
$100,000,000 of the Aldrich- -Vreeland
currency to the subtreasury in New
York. This currency can be issued
on the security of high class CONNER
cial paper or State and municipal
bonds, which have been approved by
the bank which asks for currency in
exchange, and the special association
- which the bank is member. In
addition the security must be accept
able to the government.
Some officials in Washington expect
Mr.. McAdoo to use his influence to
keep the New York evhanges closed
for some time. He is instructed to
show that the government does not
favor the reopening of the exchange
at this time. The impression also
was evident among officials tonight
that party differences in congress are
to be laid aside for the present and
the president and his advisers can
count upon unanimous support in any
measures they deem needful to meet
conditions.
There has been no call from out
side New York for Aldrich-Vreeland
currency.
Another helpful factor is the de-
posit of $34,O0O,OOO by the treasury
in national banks for moving crops.
This will be available as soon as the
banks comply with certain conditions.
It became evident that the concern
of the administration is for Ameri-
can financial institutions and that
questions of foreign exchange and in
ternational finance are to be pelegat-
ed to second place. Early today Mr..
McAdoo had a long talk with Max
May of the Guaranty Trust company
August Ulrich of Ladenburg, Thai
man & Co, and Franklin @. Brown of
Redmond & Co., all of New York. Mr..
May and Mr.. Ulrich called particu-
larly to discuss the questions of for
eign exchange. No concrete plant
however, was adopted by which the
government will mix in affairs be-
tween American and foreign bankers.
The New Workers returned to New
York today and are to call a meeting
of foreign exchange bankers there to-
morrow. There was passing refer
ence to the creation of 100000, ,OGO
fund for the use of English bankers,
but it was explained that it is not in
tended to have the United States gov
ernment lay aside such sum to their
credit. 1t was the understanding that
it might be found necessary for New
York foreign exchanges to extend
large line of credit to British institu-
tions of known soundness. 1t was
made clear that the treasury regards
this matter as one to be arranged be-
tween the bankers concerned.
Officials have observed the protec
tive measures taken by European
countries to keep intact their stores
of gold. 1t seemed probable tonight
that the administration might be cali
ed upon to keep American gold her (
and give Europe American paper ia
exchange.
Although there is every prospect
that customs revenues will fall off
sharply, the administration is said to
have made no definite plans to pro-
vide for revenue in other ways. The
house is expected tomorrow to pass
promptly legislation which already
has gone through the senate, remov-
ing certain restrictions in the Aldrich-
Vreeland act. Before the week is
over the president expects to see all
the members Of the federal reserve
board in Office and the new federal
reserve banking system in operation
Organization of the IL reserve banks
would Immediately have a marked eff
the opinion of officials.
Before leaving for New York, Mr..
McAdoo conferred with John Burke,
treasurer OF the United States. and
George E. Roberts, director of the
mint. According to the treasury
statement of July 20, the United
States had $786, ,522 in gold coin,
$236, BAT in gold bullion and near
ly half billion in silver dollars in
what is termed it's currency trust
funds, besides $150,00O,O 900 in gold
coin and bullion in the reserve fund.
Its cash assets were $287 300, 1859,
with grand total of assets amount
ingto about 100000. The prin-
cipal liability of the government is in
gold certificates, amounting to a little