The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-01

portant OF several steps taken by the
guard the financial situation In this
country growing out Of tho impending
European war was action by the
Senate amending the Aldrich- Vreeland
emergency currency act. This action
WAS taken unanimously and In almost
record time in response 10 a suggestion
from the Secretary Of the Treasury.
The effect Of the legislation is to
authorize the Secretary to suspend tenn
porarily whenever he deems Il neces-
.ary the operation of the Limitation In
the Aldrich -Vreeland act by which
hanks applying for permission TO issue
emergency calculations are required TO
have bond secured bank note circulation
out standing 20 the amount of 40 per
cent Of their capitalization.
This amendment will be passed by the
House tomorrow without delay.
The introduction Of the amendment
IN the House and the Immediate action
on Il followed closely on the heels OF
statement by the Treasury Department
announcing that the s50o.0oo,ooo OF
emergency currency available under
the Aldrich- Vreeland act Is in readiness
IN tho Treasury vaults to be issued to
the banks Of the country n they de-
sire It.
Precautionary Measure.
n was made plain that this step WAS
taken merely as a precautionary meas
ure and 20 guard agains, any depletion
Of the reserves OF the banks pending
the inauguration OF the currency sys-
tenn. Secretary McAdoo made Il plain
that his announcement was not made
at the request OF any bankers for the
issuance Of emergency currency AT this
time.
He had caiied the attention OF the
pubic to the availability of this $780,
100000 merely because he feared there
might be a Misunderstanding that the
Aldrich- Vreeland act had been repealed
with the enactment of the new Federal
reserve law.
The amendment TO the Aldrich-Vree-
land act was suggested by the Treasury
Department in response 10 representa-
tions from many Of tho banking inst
tutions In New York and other large
cities. II was represented that many
OF the largo banks would not be able
TO qualify under the terms of the act
10 meet a sudden demand for emergency
secured bank note circulation was 70
be insisted upon. In the present stu
alton. with the Federal reesrve system
still unprotected, II was deemed ad-
visable, therefore to remove any un-
necessary restrictions on the issue o,
emergency notes.
Secretary McAdoo communicated with
Chairman Owen of the Banking and Cur.
rency Committee of the Senate and al
vlsed him OF the situation IN New Yorl
and elsewhere. senator Owen hastily
convened the Banking and Currency Com,
, mittee and after a short session tho com
! m'tt@e unanimously reported n bill amend
ing the Federal reserve act, or az much o,
il as reenaots the Aldrich-Vrrcland bill
10 give rhe Secretary the power TO -us
pend the requirement.
, Not n Dissenting Voice.
, The Senate passed the hill after CHAIR
5 man owen had reported It and explaine,
= II TO the Senators There was not
; dissenting voice and practically no op
= position. Tho whole proceeding required
l. but a few minutes and the Banking anc
Currency Committee was not In Fessiur
over fifteen or twenty minutes
Teali2lng the world crisis, Senators 70
: tho moment forgot politics. Even Sem
: tor Snoot, 4 stalWart Republican. vii,
day afte> day In the senate has beer
I, calling attention 10 the depressed con
dltion Of business throughout tho cuun
!. try. touched an optimistic chord to day
! and while the Democrats sat smiling tn
Senator from Utah told his colleague
upon what a solid basis the banking
OF the United states was being carrie,
on how substantial was the value .
Investments. and generally drew pctur
that WAS much more cncouranging thai
anything he has said recently In tn
Senate. Senator Smoot questioned tn
bin simply because he feared tho passag
of II in such a hurried manner Nigh
. carry an unvsrranted impression to IN
= country.
l. Senator Es,son, Republican. member o
a the Banking and Currency Committed