Omaha daily bee., 1914-08-04
TO FORTTFY BANKING SYSTEM
U. s. Government Acts TO Protect
the Nation Financially
TREASURY OFFICIALS TO N. Y.
McAdOo and Houston Leave for
Gotham Auth Orised to Put Into
Operation Plan SO Emergency
Currency Available.


chinery of the federal government was
turned today toward the perfection OF
plans TO fortify the American banking
system so that the nations share in the
financial burden of European war will
be distributed on many shoulders and
its direct effects minimized.
Conferences at the White House and
Treasury department at which the for
eign and domestic aspects of the stua-
ton were discussed culminsasd late to-
day In the departure for New York of
Secretary McAdoo and Comptroller Of the
Currency williams.
These two men have all the govern
ment authority to put into operation the
plan which congress designed years ago
for such situations as the present by
which the national banks OF the country
can obtain S5O0,OO0.O 900 in currency under
the Aldrich-vreeland act with which to
face any condition and meet any obliga-
tons.
In Excellent shape.
Mr.. McAdoo. before he left, declared
that he considered the country 20 be in
excellent shape to take care OF itself and
that there was not the slightest reason
for any feeling of alarm. President VIII
son. who discussed the situation at lunch
con with Secretary McAdoo, is confident
that any condition which arises can be
met without great difficulty. Mr.. Nc
Adoo and Mr.. Williams will confer with
financiers in New York as soon as pos
sible and these conferences are expected
to strengthen the spirit Of cooperation
between the government and the banks
Mr.. McAdoo may return to Washington
late tomorrow in time TO meet repre-
sentatlves of the clearing house associa-
lions OF Chicago and st. Louis, now en-
route to the capital at his Invitation.
Felt I'm Gornam first.
In official circles here the feeling was
evident that any unusual strain will be
manifest first in New York. and both
the president and Mr.. McAdoo were
anxious that the highest government
financial authority DO on the ground.
Before Mr. McAdoo left Washington the
treasury shipped out about $lOOOOO,OOO OF
the Aldrich-Vreeland currency which will
be in the vaults of the subtreasuries to-
morrow ready for the New York banks
Approval of Currency.
This currency in most essentials is like
that OF the national banks, but can be
mercial paper or state and municipal
bonds. Commercial paper used for this
purpose must be approved not only by
the bank which asks for currency in ex-
change, but by the particular special as
ISOLATION OF which the bank is a MEM
Der.
In addition the security must be ac-
ceptable to the government Tomorrow
Mr.. McAdoo and Mr.. Williams probably
Will scan securities offered by New York
banks for emergency currency and facil-
tate in every way It's movement from
the subtreasury to the banks.
Il would not surprise officials in Wash
ington II Mr.. McAdoo used his influence
in New York to keep the New York Stock
exchange closed for some time. No di-
rect proposal Of this kind may be made,
but no Is expected to show that the gov
eminent does not look kindly upon the
reopening of the exchange at this time
and the speculation which may follow.
A feature OF the situation here which
called forth favorable comment tonight
was the impression which the admin
stration has gained that party differences
In congress are to be laid aside for the
present, and that the president and his
I
advisers can count upon unanimous sup
port in any measures they deem needful
TO meet conditions.
There has been no call from outside
New York for Aldrich-Vreeland currency
and 1t was not believed here tonight that
other banks wiz make such calls. The
treasury Is stocked with many millions
more OF bills printed. stamped and
packed, ready for instant shipment. The
very fact that this vast sum is here is
expected to have reassuring effect
throughout the country. Another factor
which officials think may help to allay
uneasiness lie the deposit OF $s400o,oOo by
the treasury In national banks in the
! farming sections OF the country to be
used In moving crops. This fund Will be
available as soon as the banks comply
with the conditions laid down by the d.
partment and probably win be PLACED al
their disposal within short time. Dis
tributed through a large section OF the
country. II will aid the banks in meeting
the usual demand for money for the croI
movement. relieving New York from THU
burden.
1t became plainly evident today tina