The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-04
BANKERS ACT TO
KEEP GOLD HERE
Clearing House Certificates
Halt Dangerous Drain
of Cash.
s3O.!1t 900 PUT OUT
Emergency Currency VIII
Also Be Issued
To-day.
SEE END OF MENACE
FinaucirrS Believe Action Taken
Guards Interests Of
Country.

o-r ~ IN, cooperation Of the Govern
men, and the banking interests ont OF the
harmonious deliberations OF every shade
a, r-ivste business came concerted plans
y.stsrdey whereby the gold reserve OF
RE country will be protected and local
panic put beyond the reach of probability.
Tn. close OF the day found bankers
.--.re for the first time in fifty or more
hours. and confident that the business OF
me country viii ~ least remain orderly.
me words are those ~ The head or one
q, ~. largest institutions IN the world,
and he meant that n no one was cheerful,
,cyous or hilarious. ne believed that the
country could take care Of anything that
might Asppen: and ~ business was not to
ne normal 4 was not to he 30 seriously
disturbed that Il could not be handled.
summed up the acts, public and private,
which allowed the leaders OF finance TO
sleep a ltte for the first time in two
days were.
lie removal by Congress OF the $500
100000 limit on emergency and the in
olusion IN the participation of state banks
and trust companies VINO are TO Join the
Federal Reserve Association. This will
rive business the use OF unlimited bank
note currency 500 OOO, 600 OF which or
more will come to New York. tho financial
centre. y II IS needed About $4,000. 900
will Ne issued to-day.
Certificates Release Cash.
The use Of Clearing House certificates
N the New York Clearing House Assoc
ra,ion whereby the great financial instl-
,utions will do business with certificates
thus releasing for general purposes
throughout the country currency which
otherwise would be tied up In immense
amounts.
Certihcates to the amount 81 S2O,274,-
Wo were issued yesterday. hut the loan
committee Of the association passed upon
and approved securities presented, com.
mercll paper In very large amounts prin-
rpalB. and stocks and bonds, which will
enable n to issue more than sf00.O0O.OOO
II necessary.
lie refusal ~ all View York exchanges
to orcn their doors, thus preventing q
heaiN sale by foreign holders OF all classes
Of securities and the consequent with.
draUal ~ gold.
The action Of the Savings Banks Asso.
eintiOn In announcing that they would In.
si.t upon the sixty days notice for with
drawals. thus preventing "a run by excited
citizens Of all natlonalities.
Running through all these actions like
threads through carpet was the unani-
INplss 4lttIlg tupI1tE dllOll VI every ptlSpii,
united IN the determination that the
United States would protect It's own. And
that was called ono of the greatest helps
Of an
The almost continuous meetings of
bankers and business men. beginning Sat
uycsy, when the country began 10 wake
sp 10 the situation and eliminating with
rhe Sunday night conference with Secre-
tary o, the Treasury McAdoo Comptroller
dt the Currency John SHELTON Williams
end Messrs, Harding and HaInlin OF the
Fcderal Reserve Board, went far toward
reNiNng hope.
Sees Need OF Guarding Gold.
Tho Clearing House Association met at
$3.50 and nearly every one of the sixty-one
banks and trust companies In the member
ship were represented. Francis l.. Hlne
presided The meeting was private but
enough II known of its deliberations TO
say that the interests OF this country at
home and abroad were gone into by
experte Tho dangers were pointed out
and The necessity for prompt action urged.
The action was taken and the following
statement issued
Al the meeting OF the New York Clear
ing House Association this morning the
situation abroad was discussed and its
bearings on the business of this country.
- IS the opinion universally expressed
mat IN view Of conditions existing in
every European country every means
should be adopted to protect the gold
supply IN the United States, and II was
therefore voted that at the present time
ths Clea ring House Association be placed
upon certificate basis.
"a second resolution was also adopted
making available IN payment OF balances
ar forms Of currency issued under the au-
'hor''y ~ the national Government.
This indicates "A desire on the part OF
the bankers to use freely the currency is
tued through national currency associa-
tons and 10 care 10 tho fullest extent for
me -oGIre'nents OF their correspondents
and the needs OF inland exchanges"