The Washington times., 1914-08-04
us. TO RE-ESTADL|SH
FOREIGN EXCHANGE

With the financial situation in the
| United States temporarily by the dis
| tribution of SIS, 900, 900 In emergency cur
rency in the subtreasuries of six cities.
| the question of international exchange
, doomed up today as the gravest hnan-
cial problem which this Government
now faces
with carEoes Of cotton and grain
held I'D at every port on the Atlantic
Pacific and Gulf coasts, unable to move
because Of the complete breakdown OF
foreign exchange. Secretary McAdoo,
Comptroller of the Currency Williams,
and other officials have set machinery
in motion to relieve the situation
Serious consideration Is beng given
by the Treasury Department TO the
question Of helping to establish an IN
ternational clearing house TO permit
the resumption Of world traic- RI
.IcSange bankers OF this country and
the leading European -centers INTO
Agreement on Some workable basis OF
As a means Of moving this grain
cargoes now piiing, up at american
plan of offsetting balances owed by
American bankers abroad against pay
mepts for grain shipments be adopteo.
Primary consideration today Is oeing
given to this anglo OF the nnanciai
situation.
Money Sent to Six Cities.
Comutroller of the Currency Williams
announced today that although the ouik
Of the emergency currency sent out mad
rone TO Now York, express shipments
also were sent to the subtreasurfes at
Chicago. Boston, Philadelphia. St Louis
and Baltimore. Baltimore's share was
between 10000 and 100000.
None of this currency had been issued
to banks up until noon today, accorains
to Treasury advices, but II is nel1 AZ
the subtreasuries subject to the can OF
banks which have Joined Nauonai Sur
rency Associations.
In response to requests from banks IN
cities where National Currency Aso-
Citations have not been organized, comp
troller Williams announced that panks
rency associations in the nearest city
having such an association In their
Federal reserve district. Memphis
bankers were advised to join the SUI.
Louis Currency Association. Cleveland
bankers were advised that they could
either Join the Cincinnati association
or organize one of their own.
COMPTROLLER Williams reiterated the
statement that for the present the fl
nancial skies in this country are serene.
he W0uld n0< dtIeIHpt 10 ptSuict WhoI
NAV happen as the war progresses. but
he said the patriotic loyalty shown In
Congress and by bankers In cooper
ating with the Treasury Department In
relief measures had relieved a situation
which a few hours before had grown
acute.
Pass Currency Bill.
The House today agreed unanimously
to conference report on the emergency
currency bill, making available to ma
tional banks approximately 100000 II
there should be demand during the Eu-
ropean war crises. The compromise
amendment authorizer the Secretary Of
the Treasury to issue emergency circu-
lation notes to any national bank to the
amount of 125 per cent of its capital
and surplus. A gold redemption fund
of not less than per cent must be de-
posted by the subscribing bank. 1t is
estimated that If this emergency issue
is taken advantage OF to the fullest ex-
tent more than $500. 900 of emergency
currency may be issued.
The Senate, within ten. minutes Of
the passage OF the bill by the House.
adopted il unanimously without dis
cusSion.
Senator Bristow criticised the meas
ure as. amended. He said the amoTnt
of currency which could be issued was
too large and. as for the gold reserve,
ii should be at least 10 per cent
The bill will be Immediately signed
by President Wilson