New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-04
Emergency Money Gets to
ub-Treasury, but Not a
Dollar Was Taken Out.
BIG WITHDRAWALS
EXPECTED TO-DAY
Frank A. Vanderlip Confers with
Controller - Sees No
Cause for Alarm.

" =.
sistant Secretary Of the Treasury, who
has been appointed member Of the
Federal Reserve Board by President
Wilson, were on hand early to receive
applications for Withdrawals. Mr..
Williams said later in the day that not
a dollar had been taken out.
1t is expected that beginning to-day,
however, large amounts Of the emer-
gency money will be put into circu-
lation. The National City Bank is
entitled to S10,000,0O0, and this insti-
tuition, 1t was said, will take advantage
of its full share.
No Rush for Money.
The emergency notes delivered to
the Sub-Treasury yesterday consisted
of the available supply that had been
printed for use by New York banks.
Controller Williams said that its issu-
ance would make the total amount Of
bank notes outstanding the largest in
the history of the country.
AS far as we have been advised. the
situation is we'll in hand in New York
as well as in the rest Of the country"
ne added. There are no indications Of
anything disturbing. Every report we
nave received has been extremely reas-
surlng. AS matter of fact, the bank
ers to-day got along without any Of
the emergency currency. Not a dollar
OF lt was taken out.
some applications are in and the
money will be called for tomorrow.
For that reason Mr.. Hamlin and nv
sell VIII be there then. The fact that
S45,OOO.OOO was available and was not
called for is, as ! say, extremely reas-
surlng. The banks met less withdrawals
to-day IN many instances than they ex-
pected.
The notices that the emergency cur
rency would be issued were sent out BY
Secretary McAdoo Friday and Saturday
10 bankers throughout the country.
About S5,OO0,000 has been sent to the
Sub-Treasury at Baltimore, about s1o.-
OOO,OOO to the Sub Treasury in Chicago
and between 100000 and $4,000 900
10 Boston to relieve any financial strin-
gency that might occur.
mere is now more money per capita
IN the United States than at any other
time in our history"
There was withdrawn from the Sub
treasury yesterday S3,50O,0OO in gold
coin for shipment to Europe, the greater
portion of which is to be used for the
benefit of tourists who are now strand
ed abroad and are unable to turn their
letters Of credit into cash. The gold
was engaged by the Bankers Trust
company, agent for the American
Bankers Association, and will be held
IN It's vaults until some way has been
found to shin the yellow metal.
Banker TO Ask Warships.
Benjamin Strong, jr., president Of
the trust company. left yesterday for
Washington to confer with government
officials over some method of getting
the gold across the Atlantic. Ii may
be that a warship may be used not
only to convey the yellow metal but to
bring back Americans to this country.
There was also withdrawn from the
Sub-Treasury yesterday S3,025 900 gold
coin for shipment to Canada. J. & W.
Scligman & Co. engaged 100000 for
shipment to London on the Lusitania.
but this engagement was cancelled.
Frank A. Vanderlip, president of the
National City Bank, after comforting
with Controller Williams, said that
plans for the delivery Of the emergency
currency money were being carried for
ward rapidly, and that millions of dol
lars have been applied for by New
York bankers. He said that the securi-
ties for the currency were already in
the Sub-Treasury, and delivery would
be made shortly.
Mr.. Nanderlip believed that the pres
cnt financial situation in this city was
such that it would easily be met by all
bankers and would give no cause for
alarm
Dispatches were sent yesterday by
Charles A. Conant to Secretary Nc
Adoo and to Carter Glass, chairman of
the House Committee on Banking, sug-
costing that the new banknotes issued
under the Aldrich- Vreeland law should
not pay higher tax than the ordinary
notes issued under the national bank
ing law, which is half of / per cent.
II was suggested that this addition be
made to the bill pending in the House
and which has already passed the Sem
ate, amending the Aldrich- Vreeland
law in other particulars. Mr. Conant
explained the purpose of his sugges-
ton as follows:
81 do not believe that the country
needs any imitation of paper currency
or any great expansion of loans, but it
is desirable that the banks should be
put in position to husband their gold
and take defensive measures to keen
it, similar to those which are taken bv
European banks. The government
holding 81 ,000 900 in gold as a trust
fund, offers an absolutely free and
open market 20 those who seek TO oh.
tain gold by the presentment of gold
certificates.
"The Treasury cannot, in honor. in
terpose the slightest obstacle to deliy-
ering gold TO holders of certificates. be-
cause the gold is their property. The
legal and moral obligation in the case
of a specific deposit of this sort is
very different from the obligation of
a bank to pay gold for notes to a
client instead of according him bank
ing or Clearing House credit.
THE object of my suggestion is 10
permit the banks to substitute bank.
notes in circulation so far as possible
for gold and to husband the gold IN
their vaults. -. II they simply sub
stituted a banknote for every gold GER
tlficate which they received in the
course of ordinary business they would
greatly strengthen their reserves.
80 long as conditions in this coun-
try continue sound the banks do not
need the Aldrich- Vreeland notes for the
purpose of extending their accommoda-
tion to their clients, but only for the
purpose Of protecting their gold and
maintaining the strength of the fnan-
cial situation. / do not think that
they should be heavily taxed for doing
their share in this important service
Secretary McAdoo, who left for
Washington yesterday following con-
ferences with New York bankers at
the Vanderbilt Hotel Sunday night,
before his departure said: