The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-08-03

Sir. McAdoo were John shelton vii
lianG. Comptroller OF the Currency:
Charles =. iIamlin and William p. G..
Harding. members of the Federal Re
serve Board. Until far into the night
they discussed relief measures with
group OF leading bankers.
The New York Clearing; House Com
mittoe to-day called II meeting OF the
Clearing House Association. to be held
before banking hours tomorrow, to
arrange for immediate issuance Of
clearing house certificates.
Banks of New Yorl; and other large
cities completed arrangements TO take
out many millions of dollars or emer
gency currency tomorrow.
/ Recommendations were made that the
savings banks and the private banks
Of this state enforce the sixty day
clause. empowering them TO decline to
pay on, money within that period TO
dcpositors.
{ The New York State Savings Bank
Association will meet before banking
hours tomorrow. and 1T was under
stood tonight ,that the sixty day
clause would go into effect
Many OF New York's foremost
nnancicrB attended to-nights confer
cnce. They included J. Picrpont Nor
gan and his partner. Henry l.. Dawson:
/ Frank y. Vanderlip, president OF the
National CITY Bank. and A. Barton
| Hepburn. chairman OF the Chase Ma
| tional Bank.
! The Recommendation to be made b.:
the clearing house committee to the as
ISOLATION to issue clearing house Ger
/ iihca;es was regarded here tonight as
virtually certain OF adoption These
certificates. while nvr legal currency.
| We're accepted during the panic of 1907
! by the banks in settlement OF transac-
hp, I'm
| cities were circulated In lieu of legal
! tender.
! New York bankers we're emphatic in
their statements that there need be no
| fear OF disastrous developments The
/ position OF the banks Of the country
as whole. IL was said. was funda-
mentally strong.
bankers were IN conference through
! out the day. During the morning the
! wires to Washington were kept in use
almost constantly. and after the Presi-
dent and Mr.. McAdoo had been in
! formed Of the views OF the New York
( bankers 1t was decided that the situa-
! ton was such as to demand the pres
cnce OF the Washington officials at the
! financial centre. Before they left the
/ capital special telegraph wire was
/ installed In the subtreasury with direct
I connections with the Treasury Depart
! mcnt.
executive committee Of the National
/ Currency Commission and the Clearing
! House Committee was in session. The
| proposal TO Issue clearing house GER
I tihcates met with opposition both on
/ the ground that Il was unnecessary and
/ for the reason that II might create
alarm. The opponents TO the plan were
won over, however. when news came
| OF the commencement OF hostilities by
! Germany. France and Russia.
Bankers considered Il, highly i'm
probable that the outpouring of gold
to Europe would continue IL for no
/! other reason than 1t would be almost
! Impossible to ship it with any degree
| OF safety. Insurance rates last week
were almosts prohibitive, and it was as
| sumed that the insurance companies
would refuse TO take on further risks
/ under present conditions.
J STATEMENT ISSUED
! ny SECRETARY McADOo
The conference between the Wash
| ington officials and the bankers was
! in session until midnight At its close
/ Secretary McAdoo said:
/ Arrangements were perfected for
issuance by New York banks of $780,
| 100000 of additional currency. IL re-
| quired, TO enable them to respond to
calls of correspondent banks for money
TO meet the demands for crop move
ment. I intend to permit the issuance
of similar currency to banks in other
sections of the country upon their ap-
plication 10 the Treasury Department
and their compliance with the pro-
visions of the act.
Tho secretary prefaced his statement
! by saying he had come TO New York
fora conference with the leading bank
ers about the issuance of emergency
; currency, and for "A discussion of the
measures for protection OF the coun-
try's gold supply.
lie added that the country was in
splendid shape, and that with proper
| precautions It should be possible 10
| overcome the difficulties of the pres
| ent situation.
/, The present financial situation, 1t
I was explained here to-day by bankers.
was brought about by number OF
causes. For months business has been
/ back ward and capital timid. Then
came the spectre of the European crisis,
/ whose effect was to demoralizc the
& financial markets OF Europe. resulting
! ing stock exchanges. including the New
( York exchange. An important added
cause Of disturbance here was Europe's
enormous demand for American gold.
! Last week these exports were we'll up
to $5o.o00,0oo. The probability that,
/ with the Old World in a frenzy. there
would be severe reaction upon COM
mcrce and industry here, as we'll a
| troubled state of public sentiment,
made the outlook still worse.
/ This was the situation to-day, and
when news was received OF the final
crash in Europe, with all OF the prin-
cipal nations at war, or on the verge OF
! it, realization came that energetic
measures must be taken TO safeguard
! American financial interests.
The decisions OF the British Cabinet.
which are TO be announced by Premier
: -Asquth. are comprehensive. and DEAL
+ not only with naval and military prep
/ arat.ons but with the whole fabric of
/ national credit and food supply.
| MANY ACcEPTANcES FOR