Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-29
BANKS HERE ARE NOT
TAKING VERY MUCH
EMERGENCY MONEY
Their Reserves So Strength
ened That Demands on
Subtreasury Are Light.
$l0,l57,000 Taken by
This City.

Banks in this. city and the country
stronger pistiin now than at any time
since the closing If the Stock Exchangen
of the wirld when hostilites in Europe
began. This is indicated by the faat that
there has been a let-up in the issuance of
emergency currency at the SubTreasury
in this city, particularly in the last three
weeks. The few applications which are
now coming in are principally from coun-
try Institutions. Another indication of
the stronger position is the statement. of
condition of the Philadelphia Clearing
House members in the last three weeks
showing an increase in reserves.
The National Currency Association of
Philadelphia, which has jurisdiction over
the issuance of emergency currency and
acts on the applications of the banks,
met daily in the first part of August
to act on applications as to whether the
association should recommend the issu-
ance of currency to them and whether
the collateral offered by them. was sat
isfactory These meetings have now
dwindled down TO about two a week, and
are then called only when some applica-
tions are on hand. This week there has
been only one meeting, and it is under
stood there may be- another before the
end of the week, although it is not now
certain.
Since the first emergency currency was
taken out on August T. approximately
seven weeks ago. there has been issued
at the Subtreasury a total of SlO.157, 600 to
Fl banks and $4,000 of this amount was
taken out this week. This is an aver
age of $l,45l,O00 per week. majority
of the banks still have large amount
of 1t in their vaults. having taken it out
as precautionary measure. To meet
the demands for emergency currency
when they were first made, the Conn
troller of the Currency sent to the local
Subtreasury S20OOO,OO0 worth and so,S4S,-
600 is still in the vaults.
THE COLLATERAL DEPOSITS.
Against the total of $1O,l57 900 issued
there has been deposited collateral with
the Currency Association to the amount
Of approximately Sl4OOO, 900, which is
now being held In the vaults of the
Clearing House. OF this collateral it is
estimated that 50 per cent. represents
commercial paper and the remaining 40
per cent. railroad and other bonds.
1t is provided in the Aldrich-Vreeland
law that currency can be issued to an
amount not exceeding rs per cent. OF
the cash value of commercial paper de-
posted and to an amount not exceeding
80 per cent. of the market value of
State, city, town, county or municipal
bonds. The Secretary of the Treasury
has reduced the percentage on State and
municipal securities to S5 per cent
Secretary McAdoo, in accordance with
his campaign against boarding money
and banks charging excessive interest on
loans, has sent letter to the currency
associations throughout the country which
requires them TO secure information from
applicants for emergency currency as fol-
lows: The legal reserve. held, rate of
interest charged on renewals of time
loans, rate of interest charged on re-
newals of call loans, and the rate of in
terest charged ON new time and call
loans,