Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-08-02
Relief Measures Designed to
Preserve Public Confidence
Are Under Way by Bankers
Of New York City,
EMERGENCY CURRENCY
TO BE READY THIS WEEK
Representatives Of Foreign *
change Houses to Propose
to President Extension of
Huge Credit 10 England,
~ somnra ,ou.... s,,el.l ll.,.o nn.,l

~ soHuna JOURNAL SPECIAL Lrhsro wesl
New York. Aug H. Extraordinary
faction vas taken he the leading H.
naneial Interests of America today 10
avert financial nnsettlement i'm this
country az result OF the European
war Relief measures are under way
which, in the opinion Of the bankers,
viii preserve the public confidence.
This Is the situation
Emergency currency probably will
be Pot into circulation next week. "
occasion requires his currency. is
slance u which is provided for by the
Aidrlch-Nreeland act passed afte4
the 1907 panic, may be supplemented
here and elst where by clearing house
certificates such us were used IN 1907
Representatives Of New York for
eign exchange houses left tonight fof
Washington TO hold Sunday confer
ence with President Wilson They
planned TO suggest the Unprecedented
procedure OF advancing 100000, 900
credit to England
To Formulate ran 81 Notion.
Bankers from the principal cities Of
the country arranged meeting to be
held nj Washington on Monday to
formulate plan of action.
1t was day Of strenuous activity.
not unmixed with anxiety for the
bankers OF New York. The European
crisis demorslised the financial mar
kets Of the world "a week ago and the
intricacies of modern finance are such
that upon America. Isolated from the
perils Of war. fell a fun share Of the
burden. Liquidation of American
stocks by European holders not only
upset this stock market so completely
that Il was compelled TO suspend busi-
ness, but raised another serious prob
lem. That problem WAS TO pay Europe
for the stocks sold mere.
II is estimated by representatives of
foreign stock exchange houses that
from Sl000e0.000 10 S1h0,000,O00
worth Of American stocks were
thrown on this market for whatever
they would bring by panic-stricken
European holders Canada also UNI
loaded stocks here 10 a large extent.
Next week The bills drawn against
these sales If stock will reach New
York. Part Of the s45.000,00 gold
shipped abroad Oh vessels now on the
high seas IS In danger Of capture.
Even these shipments leave a huge
total Of foreign credits 90 be satisfied
roday's statement Of the New York (
banks showed IN cold print the effect I
u the raid upon the American supply
ot gold There was a decrease In cash
holdings Of more than $50. 600. +
hue principally 10 the loss of gold /
md TIT place If the surplus reserves OF T
$4,000 600 reported last Saturday I
Ihcre was today deficit Of Sl7 ,000.- +
10N
Decisive Action Necessary.
To meet these foreign claims with /
cut serious eucroachmcnt upon availa
Die financial resources the bankers of .
New York We're forced TO take deci-
sivc action
Early n the day there was a confer
'nce of some of the leading bankers
n New York Later there was a meet
ng of the National Currency associa-
Ion Of the city Of New York an or
ganization provided by the Aldrich- +
Vreeland law At this meeting all ar
were completed for issu-
lnce of emergency currency next
week
Although the possibility of issuance
If emergency currency has been dis
'ussed quietly in Wall street the ac-
ion -of the New York association gave
ne ihHi hNlHpItdRlNf 'ttt'i EfNitlt u
hose reports.
A statement was made tonight by H
Frank A, Nanderlip, president of the
tity bank, In which ne said
THE action of the New York cur
'cney association in getting all the
ready for the issue of ad-
litional bank notes should give assur-
lnce that there viii be no lack Of ann
D., II ta j
possible go create considerable
mount of additional currency that Is
Ibsolntelv secure and in exactly the
anne form as the present national
ank notes II is obvious that in the
present disorganlzed financial situa-
ion ia Eurone the demand for any adj
litional circulation must be met from
within ourselves.
No Repetition OF 1907 Panic.
THE law offers perfectly sound
method OF eonverting assets into cir
'ulating notes There need be little
ear therefore. of any repetition Of
he conditions Of 1907 when there was
% much distress through the inability
# banks to supply a circulating me-
Iium The banks Of the country un-
Ter This law may take out $500 000.0 00
additional bank notes There is no
probability that anything like that
mount viii he needed, or could be
sed. bur the banks are In a position
o make their assets LIQUID and TO meet
upon them In a pVsectly sat
-factury manner by increasing their
aiional bank notes under the provi-
ions of the act. The act provides a
rue cNpau ling currency and 1t is most
crtunate under all existing conditions.
hat u Is available for the national
anking Institutions Of the country.
The treasury Is cooperating in
very way possible. tt has been fore
anded in printing these notes in ad
anec SO that they are immediately II
vailafle and the door is open for the
rcation III amy reasonable amount of |
erfectlv sound currency to meet
ihateyer eeitimrte demands there
aaN ne for q circulating medium
Always at this crop moving sea-
on there IS a demand for large I
mount Of additional circulation and Il
Is not probable that under the seri-
as strain that the European situa-
ion has pm upop Us that there may
g more than an ordinary lcmand for
honey TOR circulation. and white The II