The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-08-02
FINANCIAL INTERESTS
MOVE TO AVERT PANIC
Extraordinary Action Is Taken to
Save This Country Unsettlement as
Result OF European Crisis.
CONFER WITH WILSON TO-DAY
Unparalleled Proposal Made That
Credit of S1OO,OOO,OOO BE id-
vanced to Observation-Disclosures De-
moralized, and Grave Peril Ahead.

New YORK. August 1.-F.Xtraordnary
action was taken by the leading hnan.
cial interests OF America TODAY tc
avert financial unsettlement in this
country as ii result of the Europear
war. Relief measures are under way
which bankers believe will prcserv,
me public confidence. This is thu
Z situation
Er ereencr currency probpol, aiI
be put Into cireulHtion neMt week II
occasion requires this currency, is.
/ suance'o of which is provided for by tho
Aidrich -Nrccland act passed after ,he
400 panic. max be supplemented here
;.nc elsewhere BY clearing house Ger
tihcates such as were used in 1901
Representatives OF New York for
eign exchange houses left tonight
Tor Washington TO hold Sunday con
terence with President Wilson They
planned to suggest the unprecedented
procedure OF advancing 100000 OOC
credit 10 England.
RAM ers from the principal cities OF
the country arranged a meeting TO bo
held in Washington on Monday to for
inulatc a plan of action
DAY OF STRENUOUS
ACTIVITY FOR BANKERS
1t was day of strenuous activity,
not unmiSed with anxiety for New,
York bankers The European crisis de
moialtzed the financial markets of the
world Il week ago. and the intricacies
OF modern finance are such that upon
America isolated from the parils OF
war. fell full share Of the burden
liquidation of American stocks by Eu
ropean holders not only unset this
stock market SO completely that il
was compelled 10 suspend business but
raised smother serious problem. that
OF paying Europe for the stocks sold
here.
Itis estimated by Representatives of
foreign stock exchange houses thai
from Slo0.0o0.00 to S150. 1000 worth
of American stocks were thrown or
this market. for whatever they would
bring. by panic stricken European hold
crs. Canada also unloaded stock here
heavily.
Next week the bills drawn against
the resales of stock will reach New
York Part OF the s45.000,00O gold
shipped abroad on vessels now on the
high seas is in danger of capture. Even
these shipments leave a huge total
of foreign credits to be satisfied. To-
days statement of the New York banks
showed the effect of the raid upon The
American supply of gold. There was
decrease In cash, holdings of moro
than s53,000.o00 due principallyuto the
loss Of gold, and in place of the sur
plus reserves, of s26.000;000 reported
last week there WAS to-day deficit OF
SIT, 100000. Z
To meet these foreign claims without
serious encroachment upon availa BILE
financial resources, tho New York
bankers were forced to take decisive
action. Uncertainty as to what deycl-
opments might result In the world of
finance from the uphcava1 il, Europe,
and doubt as to the effect upon Amer
lean public sentiment, made 1t inn
arat five tn I,a Mt ~ No L. ell .
added precautions be taken to safe
guard the situation.
ARRANGEMENTS COMPLETED
FOR EMERGENCY CURRENCY
Early to-day there was confer
ence of some of the leading New York
bankers. Later there was u meeting
of tine National Currency Association
OF the City of, New York, an organi-
cation provided by the Aidricb -Vree-
land law At this meeting all ar
rangcments were completed for issu-
ance OF emergency currency next week
Although the possibility ofssuance
of emergency currency has been dis
cussed quietly in Wall Street. the New
York associations action gave the first
authoritative Endorsement to these re-
ports To give assurance that the
steps taken would amply meet the
needs of the situation, Frank A. Van
dcrlip. president of the National CITY
Bank. tonight issued statement
which said:
"The action Of the New York Cur
rcncy Association in getting all lie
machinery ready for the issue Of ad-
ditional bank notes should giva as
surancc that there will be no lack OF
mn ample circulating medium II is
now possible to create a. considerable
amount of additional currency that is
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