The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-08-03
FEDERAL MACHINERY
FOR BANK PROTECTION
First Concern of ADMINISTRATION i'm
Present World Crisis Is for
American Financial Interests.
TREASURY IS IN GOOD SHAPE
Party Differences in Congress May
BE Laid Aside So President Will
Have Unanimous Support in Any
Action He Deems Necessary.

Washington, August o-Federal gov
ernment machinery was turned to-day
toward the perfection OF plans to for
tify the American banking system so
that the nations share In the financial
burden of the European war will be
distributed and its direct efforts mini
mizcd. Conferences at the White
House and Treasury Department, at
which the situation was discussed cul-
minated late to-day in the departure
for New York OF Secretary McAdoo
and Comptroller of the Currency viii:
liams. They have government au-
thority to put In operation the plan
by which the national banks of the
country cap obtain s50o.o00.0OO in cur
rency under the Aldrlch Vreeland act.
sidered the country 10 he in excellent
shape to take care of itself. President
Wilson also is confident that any con-
dition which arises can be met.
CONFER WITH NEW YORK
FINATCIERS TODAY
Mr. McAdbo and Mr. Williams will
confer with hnanciers in New York.
These conferences are expected to
strcngt then the spirit of co-opcration
between the government and the banks.
Mr. McAdoo may return to Washing
ton late tomorrow To meet represen-
tatives of clearing house associations
of Chicago and st. Louis. now en- route
TO the capital. In official circles ii WAS
thought any unusual strain would be
manifest first in New York Both the
President aud Mr.. McAdoo were
anxious that the highest government
financial authority be on the ground.
The Treasury to-day shipped about
$i00.c00,oo0 of the Aldrich- -Vrceland
currency TO the sub-treasury in New
York. This currency can be issued on
the security OF high class commercial
paper or state and mencipal bonds.
Commercial paper used for this pur-
pose must be approved both by the
bank which asks for currency in cx-
change and by the special association
OF which the bank is Il member. In
addition, the security must he ac-
ceptable TO the government.
Some officials In Washington expect
Mr.. McAdoo to use his Influence to keep
the New York Stock Exchange closed
for some time. He is instructed to
show that the government does not
favor the rcopening OF the exchange at
this time and the speculation which
may follow. The impression also was
evident among officials tonight that
party differences in Congress are to
be laid aside for the present and that
the President and his associates can
countiupon unanimous support in any
measures they deem needful TO meet
conditions.
There has been no call from outside
New York for Aldrich- Vrccland cur
rency. The treasury is stocked with
many millions, more OF bills ready for
instant shipment. This fact is expect
ed TO have a rcassuring effect through
out the country.
Another helpful factor Is tho deposit
OF S34,000,600 by the Treasury in ma
tional banks for moving crops. This
viii be available as soon as the banks
comply with the conditions laid down
by the department.
FIRST CONCERN is AID OF
HOME INSTITUTIONS
1t became evident to-day that the
first concern .of the administration is
for American financial institutions and
that questions of foreign exchanges and
international finance are TO be relcgatcd
to second place Early to-day Mr. Me-
Adoo had long talk with Max May
OF the Guaranty Trust Company: Au-
gust Clrich. of Ladenburg, Thalmage x
Co. and Franklin q. Brown. of Red
mond & Co. all OF New York Mr.
May and Mr.. Ulrich called particularly
TO discuss the questions OF foreign eX-
chanEc. No concrete plan, however
was adopted by which the government
VIII mix in affairs between American
ana foreign bankers. The New York.
crs returned TO New York to-day. and
are TO call meeting OF foreign, eX-
chanse bankers there tomorrow. There
was passing reference to the creation
OF a Sl0O.Ooc,o00 fund for the use of
Ehglish bankers. but, 1t was explained.
II Is not intended to have the United
states government lay aside such sum
TO the credit OF British bankers.
oniciais have observed the protective
measures taken by European countries
to Keep intact their stores OF gold 1t
seemed probable tonight the admins
tration might be called upon to keen
american gold here. and. give Europe
American paper I'm exchange.
Although there is every prospect that
Continued on FIT, Page)