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

nations have practically suspended specie
payment.
May strengthen Credit.
The passage OF this bill" said Scns-
tor Nelson, win not do any harm and
Il may serve 70 strengthen the credit OF
tho country and TO maintain its pres
tige for holding the balance OF financial
power"
Senator Nelson said he regarded IL as
a happy condition that while the coun-
tries Of Europe were mobiliEing their
armies the United States is pursuing the
peaceable plan of mobilizing her bank
/ resources"
Senator owen explained in presenting
the bill that many OF the larger banks
| In view OF the approaching new currency
system, had reduced their circulation far
below the 40 per cont. requirement.
! because thay found other uses for tho
| bonds than the purpose of circulation
| and that II would be difficult now for
J them To- procure the bonds TO quality
! under the act 1t had existed.
| Tht bill passed to-day reenacted Sec
| ton q Of the Federal reserve act a.
| follows:
| The pro>isi ons' OF the act OF May
| 80, 1905. authorizing national cur
! rency associations, tho issue of add
tional Of national bank circulation
| and creating national moneter,
comm.ss on, which expires by limita-
ton under the terms of such act on
the Soth day OF June. 1914. arc hereby
extended to June 80. 1918. and sec.
lions. J153 SIZE. 5lP1 and 5214 ~
tho Revised Statutes OF the United
States, which were amended By the
act OF May 30. 1905. are hereby re-
enacted to read as such sections read
prior to May 30. 1908. subject TO such
amendment or notifications as we're
prescribed in this act
Provided however, that section
oc the act first referred 10 IN this
! section is hereby amended so as TO
change the tax rates fixed in said act
by making tho portion applicable
thereto read as follows:
National banking associations having
circulating notes secured otherwise
than by bonds of the United States
.hall pay for the first three months
n tax at tho rate of per cent. per
Rnnum upon tho average amount OF
such OF their notes in circulation 40
| are based upon the deposit of such
securities, and aftervard an addi-
tional tax ratio OF one-half Of l per
cent. per annum for each month until
a. tax OF per cent. per arnum 10
reached and thereafter such tax Of
per cent. per annum upon the
average amount OF such note.
To this was added tho follow inr NO.
vso:
provided further that whenever IN
able tho Secretary or the Treasury
shall have power to suspend the
limitations imposed by section and
section 3 of tho act referred IN ~
this section, which prescr!hc5 that
such additional circulation secured
otherwise than by such bonds shall
be issued 20 national banks having
circulating notes outstanding secured
by tho deposit o, bonds % tho United
STATES "a an amount rot lees than
40 per cent. OF the capital stock OF
such banks and may permit national
banks during tho period tor which
such provisions are suspended to issue
additional clrcul alton under the terms
ann conditions of the act referrs1 10
House "a Act at orc~.
Tho House Committee on Banking and
Currency viii take up tho bin In the
morning I. probal1v viii he received
TN the House ns soon as that body meets
and Immediately referred TO the Banking
and Currency Committee and then he re-
ported back and passed carly In the day
Chairman Glass OF the House commit
too was on the floor Of the Senate late
this afternoon when tho bill was being
considered. II lad been expected that
the measure could be sent to the House
for action tonight, but II was nearly
{ o'clock before the Senate had acted
and there was not timo IN do the nee
cssarv work.
Earlier in tho day Secretary McAdoo
had issued this statement.
we are keeping In close touch witt
tho situation. The Treasury Department
, will help ~ far as It logtlmately may
, I'm Now Yorl, and in other parts OF the
b. country where II becomes apparent thar
assistance Is needed.
Tile Aldrich.Nroeland act as amended
, ~ the Federal Reserve act is still IN
, force and the terms upon which currency
, may hc ISSUED are nov 30 favorable that
/ ,osort may be made quickly and ons~-
/ q, civ TO il TO meet any enerrcrrN. Vt
, must he remembered that there ia In the
, Treasury, printed and ready for issue.
=. $500. 900 600 of currency, which the banks
, can sel upon application under that law.
, This Is In addition to the rcEourres ~
t ~, Treasury.
. "ln Wow % the closing ~ tho foreign
stock exchanges the action Of tho Ne"
, York Stock ExchanCc in closing lemnor-
, arlly Is a reasonable measure 81 Pro's''
I ton 20 American Interests"