The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1914-08-02
AMERICAN
FINANCES
TO HELP
UNITED STATES BANKERS WILL
ASK PERMISSION TO LOAN ENG.
LAND $1oo,ooo,ooo IN GOLD
UNITED STATES TAKES MEAS.
URES FOR SAFETY.

NEW YORK, Aug. Extraordinary
precaution was taken by the leading
financial unsettlement in this coun-
try as result of the European war.
Relief measures are under way which
bankers believe will preserve the
public confidence. This is the situa-
ton:
Emergency currency probably will
be put into circulation next week. Il
occasion requires this currency, issu-
ance of which is provided by the AL
drich-Vreeland act, passed after the
1907 panic, may be supplemented here
and elsewhere by clearing house GER
tificates such as were used in 1907.
Representatives of New York for
eign exchange houses left tonight for
Washington to hold a Sunday confer
ence with President Wilson. They
planned to suggest the unprecedented
procedure of advancing $100, 900, 900
credit to England
Bankers from tine principal cities
of the country arranged a meeting to
be held in Washington Monday to for
mulate plan of action.
1t was a day of strenuous activity
not unmixed with anxiety for New
York bankers. The European crisis
demoraiZed the financial markets of
the world a week ago and the intri-
cacies of modern finance are such
that upon America, isolated from the
periis of war, fell full share of tie
burden. Liquidation of American
stocks by European holders upset this
market completely.
1t is estimated by representatives of
foreign stock exchange houses that
from $100,0O0,000 to $150,0O0,0 ,000
worth of American stocks were thrown
on this market for whatever they
would bring, by panic stricken Euro
pean holders. Canada also unloaded
stocks here heavily.
Next week the bills drawn against
these sales of stocks will reach New
York. Part of the 100000 god
shipped abroad on vessels now on
high seas is in danger Of capture.
Even these shipments leave huge
total of foreign credits to be satisfied.
Today's statement of the New York
banks showed the effect of the raid
upon the American supply of gold
There was a decrease in cash hold
ines of more than $53 900, due
to the loss of gold, and in
place of the surplus reserves of $26,-
000, 900 reported last Saturday there
was today a deficit of SIT 7,0000 900.
To meet these foreign Gains with
serious encroaching upon the available
resources, the New York bankers
were forced to take decisive action.
Uncertainty as to what develop
ments might result in the world of
finance from the upheaval in Europe
and doubt as to the effect upon Amer
lean public sentiment made it impera-
tive that added precautions to be
taken to safeguard the situation.
Early today there was a conference
of some of the leading New York
bankers. Later there was meeting
of the National Currency Association
of the city OF New York, an organi-
zation provided by the Aldrich Vree-
land law. At this meeting all ar
rangements were completed for issu-
ance of emergency currency next
week
Although the possibility of issuance
of emergency currency has been dis
cussed quietly in Wall Street, the
New York associations action gave
the first authoritative endorsement to
these reports. To give assurance that
the steps taken would amply meet the
needs of the situation, Frank A. Van
derlip, president of the National City
Bank. tonight issued a statement
which said:
'"The action of the New York Cur
rency Association in getting ali the
ready for the issuance Of
additional bank notes should give as
surance that there will be no lack of
an ample circulating medium.
"The law offers a perfectly sound
method of converting assets into CIR