The Daily Missoulian., 1914-08-01
TEST OF NEW LAW
WILL SHOW ITS
THE SECRETARY OF THE TREAS
URY ANNOUNCES AN ISSUE
OF EMERGENCY CURRENCY

Washington, July 31.-President
Wilson and the administration acted
promptly today to reassure the coun-
try against any threatening financial
dangers growing out of the European
war situation. First, the president
took steps to bring about an immed-
ate completion of the organization of
the federal reserve board, in order
that the new currency law may be-
come effective.
Secretary McAdoo, expressing ap-
proval of the closing of the stock ex-
changes throughout the country, is
sued a statement announcing that a
$500,000.000 issue of emergency cur
rency waiting at the treasury depart
ment, would be made Immediately
available to the national banks.
America is in position to take care
OF herself" he asserted.
To make more easily accessible this
authorized by the Aldrich- Vreeland
act the senate late in the day at the
suggestion of Mr. McAdoo, passed
unanimously an amendment to the
currency law modifying the clause
providing that members of national
currency association in order to avail
themselves of the issue must have
outstanding currency notes secured
by bonds of the United States to an
amount not less than 40 per cent of
it's capital"
The amendment would give the sec
retarNs of the treasury authority, in
his discretion, to ignore this restric-
ton. 1t will be passed early tonor-
row by the house and probably will
be signed by the president before
night.
To hasten the perfection of the fed
eral reserve board it was made known
at the White House that President
Wilson would send to the senate to-
morrow the name of his choice of a
successor to Thomas d. Jones of Chi
cago, whose nomination was with
drawn. Edwin A. Potter of Chicago,
may be the nominee. The tense sit
uation also brought to Immediate ac-
ton Paul M. Warburg of New York,
who had been for weeks holding back
from an eXaminatio by the senate
committee on banking and currency.
Mr. Warburg notified the president
that he would come to Washington at
once and telegraphed to Senator
Owen, chairman of the banking and
currency committee, to the same ef-
feet
It was arranged that he appear be-
fore the committee tomorrow after
noon.
In the senate optimistic notes were
sounded on all sides, regardless of
party affiliations and Senator Nelson
of Minnesota dramatically declared:
I'm Europe they mobilize armies
and navies, in America we mobilize
bank reserves"
The senate paused only long enough
to allow several senators to laud pres
ent banking and financial conditions
and to explain that the measure was
passed merely as precautionary
measure and not because of any
pressing present necessity.
Europe is in crisis Senator
Owen said in presenting the measure.
1.-The great central banks of France
and Germany and England have prac-
tically suspended specie payment.
Something should be done to prepare
this country to meet any emergency
that may arise.''
Senator Smoot said the bill should
not be taken for 'panic measure .
and added that the treasury and the
banking business of the country We're
| in splendid condition to meet any
| emergency"
"There is in the treasury 100000
900 dollars in gold and silver" Sena-
| 49, ol1 1a1 in
reserve and s13o,0o0,000 free gold in
the general fund. These immense
funds with $5O0,0O0,00O emergency
currency available would enable this
country to face any financial crisis"