davidaulloa/AmericanStories huggingface dataset:
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
VILLA,SUPREME
ARMY CHIEF, TO
0USTCARRANZA
Convention Spurns Latter's
Retirement Terms and
Orders War.
T.. s. NOT TO ENACUATE
UNTIL ROW Is SETTLED

FL pAso, Tex. Nov lt.--With his com
mission as commander In chief Of all the
forces of the provisional Government OF
Eulalio Gutierrez Gen. villa got orders
to-day 10 proceed with his army against
the Carranza forces In the south, accord
Ing to dispatches from AguasCdlientes.
Villas army movement, which twice be
fore had been started to the south and
then halted to await the wishes OF the
Aguascalientes convention, has started
again.
Villas resignation az commander OF
northern troops was accepted to-day by
Gen. Gutierrez and Gen. Robes. Minister
OF War in the Gutierrez Cabinet, and he
was appointed supreme commander OF the
army
a striking feature OF the new situation
In Mexico Is the division in the Madero
family Two brothers OF the slain Presi-
dent, for whose ideals both factions claim
to be hgh;ng. are arrayed against each
other Gen Raoul Madero is a COM
mauder In Villas army and Julio Madero,
a brother. is one of Carranza's strongest
supporters In the convention the two
brothers FLASHED to-day over CarrunZas
refusal To- resign
CarrauZa's troops. a part Of the strong
garrison at Monterey were attacked and
repulsed to-day by n regiment of Gen.
villa ioitfs ~ tilpOlltO' between loTT'on
and Saltllo. Capt. EseNip OF the Car
rama troops was severely wounded. Sew
enteen Carranzistas We're killed.
The casualties OF the villa troops were
not stated tn the despatch received here
from Torreon. Gen. Luis Gutierrez.
brother of provisional President gutierrez.
sent 500 troops from Saltillo TO intercept
the CarranZa troops. RecnforCements were
also sent from Torrcun.
While tho fgh. Ing was In nrogrpss In The
interior. Naco. sonora. was again being
subjected to shrapnel fire from Gov May
torena's field pieces at a range OF 5000
yards
The garrison replied. but their shells
fell short.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
FEDERAL BANK HERE
MAYLEAD SYSTEM
Likely to Rediscount for ~
Others and Also for Mem.
Der Banks.
RESERVES ARE ESTIMATED

The Federal Reserve Bank Of New York
is almost certain, II Is now believed, g.
become the real national bank Of the
country for the other regional reserve
banks as we'll as the individual mcma.r
banks
1t In a general understanding among
bankers that the New York bank Will hc
asked in very short time after the cs-
Establishment OF the system to redscour'
for some OF the other reserve banks which
are In A much more needy position IN
Ia especially true in the case OF some uf
the Southern regional banks In whose
favor the Federal Reserve Board will al
most certainly ask the New York bank o.
extend assistance as soon as the functions
OF the reserve banks are in working order
A canvass OF some OF the biggest hdtk-
in New York disclosed yesterday the SEA.
era! feeling that they would not seek re-
discounts at the Federal Reserve Bank
at It's start and probably not for some
time. Many of the big banks expect g.
have SURPRISES OF good size as tho result
OF the reduction OF reserve requirements
to which they will not want to add Us
redlscounting
According to n Treasury Department
estimate the amount OF deposits kept with
New York banks by the national ba0ks
outside OF New York Is $2S6,391 900. IN,
Treasury Department estimated that ~
per cent. OF the deposits Of New York
banks are out of town deposits The total
amount OF out OF town deposits carried u
New York II is estimated. was nrproxi
mately si,400, 900. 900 on september . OF
which about 100000, 1000, however. was
deposits Of individuals and not subject &
withdrawal by reason of the Federal r,
serve requirements.
State banks and private bankers outside
OF New York carry on deposit here. IT Is
estimated by the Treasury, Sl36lTl 600
and trust companies and savings banks
$ls7,726,OO0
II was said yesterday that the only on
OF town deposits that will he subject t.
withdrawal as the result of the I,sarN'
act requirements are the s2S6,0O0.0t0 OF
outside national banks 1t is not eNpecte1
that anything like this amount, howtyeg
Will be withdrawn. The reserve board f.
taking steps to urge the country banks -
leave their funds hero intact.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12

The Consolidated Exchange started
trading In wheat futures yesterday
The exchange authorities reported that
about 100000 bushels had been traded ill.,
The average amount of trading on the
Chicago Board Of Trade is several mill
ions of bushels. On the Produce Ex-
change trading in futures il practically
nothing. In cash grain the average daily
business Is nearly 1000. 900 bushels
1t Is understood that a large part Of
the trading on the Consolidated was by
floor traders. The range OF prices was
between 1904 and 1921 for May de-
liveries, on basis of New York allow
Ing cents for freight and storage
charges on the Chicago price. The clos
ing price was 1907 d130A.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
DR.. LYNDE'S WEALTH TO YALE.
BOwdOin and Phillips Exeter Acad-
envy Also Receive Requests,

The will OF DR. George S Lynde. who
died on November at l4S West Eighty
nth street, leaves the major part OF his
estate to Yale University and makes
specific requests also to Bowdoln College.
Phillips Exeter Academy and the public
library at Bangor, Me. The residue is
left to Yale on condition that an annuity
OF 5000 be paid to Or, Lynde's niece,
Mary L. Lynde Of Worcester, Mass.
The bequest to Phillips Exeter Is 500
900, while Bowdo,n gets $4,000 in mem
DRY of the testator's brother. The Bangor
public library receives $500 In memory
OF his parents, Or Lynde was graduated
from Yale In 1888.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
Reserve Board Defines Commercial
Paper and RuleS for Redlscountu1g

poses. however. to prescribe the follow
ing basic principles for the guidance o.
Federal reserve banks and member
banks.
"tA-No bill shall be admitted to
rediscount by Federal reserve banks,
the proceeds Of which have been, or
are. to be applied TO permanent in
vestment, and regulation No. 2 has
been formulated with the intention
or giving effect to this principle, and
Is herewith enclosed.
"tB) -Maturlties OF discounted
bills should be well distributed 1t
IL the well established practice OF
European reserve banks to invest
only In obligations maturing within
short time. 1t is general rule
not to purchase paper having more
than ninety days TO run. The ma
turtles OF these notes and bills are
40 n distributed as to enable those
banks within short time TO
strengthen their hold on the general
money market by collecting At ma
turfy or by reinvesting az a higher
rate, n very substantial proportion OF
their assets. Acting on this principle
thu Federal reserve banks should be in
position TO liquidate, whenever such
course Is necessary SUBSTANTIALLY
one-third OF ~ their investments
within a period OF thirty days De-
parture from this principle will en-
danger the safety Of the system.
1t Is observance OF this principle
that affords Justification for permit
ting member banks to count balances
with Federal reserve banks as the
equivalent OF cash reserves.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
Committee'. Work Done.

The official announcement made by tho
committee on unlisted securities was as
follows:
After conference with the special COM
mittee OF five of the New York Stock
Exchange II has been decided that the
Improvement In the general financial sit
uatlon has removed the necessity for the
supervision over trading in unlisted
stocks. and consequently that this com
mittee has served the purpose for which
II was organized
From this date. therefore. the commit
tee will cease to act, but 1t wishes to i'm
press upon dealers and brokers the i'm
portance OF continuing Its policy OF nom
publicity Of quotations and transactions,
in the interest of the public welfare"
The Stock Exchange issued the follow
ing:
1.-THE special committee OF 1--WE OF the
New York stock Exchange, being OF the
opinion that the market for un listed
stocks has arrived at a condition that
makes supervision OF dealings no longer
necessary, hereby approves the act OF
the committee on unlisted stocks In dis
solving their organization.
Rule No. 23. dated September "a. 1914
is hereby rescinded."
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
Acute stage Pa sscd.

while the most acute stlge OF the
recent financial emergency appears to
have passed the conditions in other coun-
tries make II necessary that the United
States should organize to the utmost de-
gree of efficiency and make available It's
own resources that II may provide for
its own needs and replace the facilities
suddenly destroyed by the closing of so
many accustomed channels Of credit and
trade.
THE directors and governors of the
Federal reserve banks at a conference
in Washington on october 20 and II
recommended that the banks should be
opened without attempting at the outset
to perform all the functions and duties
contemplated in the act, but that they
be prepared to accept deposits Of reserves
payable in lawful money. to discount bills
of exchange and commercial paper, and
To accept the deposit tafter the reserve
payments had been mdde) OF checks
drawn by member banks on any Federal
reserve bank or member banks In the
reserve and central reserve cities within
their respective districts.
at was the opinion OF the conference
that arrangements for the exercise of the
additional powers granted by the act TO
the Federal reserve banks. be completed
as rapidly as the establishment OF sale
and efficient organizations would permit.
The Federal Reserve Board Is In accord
with these suggestions.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
Credit Bureau Plan.

II will be required after that date, how
ever. that n brief statement OF condition
he stamped on every rediscounted bill,
giving references to standardized files of
data as to the credit qualifications OF the
firms or persons originally Issuing the
bills 1t is predicted that this procedure
eventually will lead to the development OF
central credit bureau which may be
used by all the reserve banks OF the new
system.
Another important announcement was
that the Federal Reserve Board had fixed
.; per cent. OF the paid in capital as the
amount up TO which Federal reserve
bank may discount notes, drafts and bills
drawn for agricultural purposes or drawn
on live stock. This is the provision OF the
new system which is counted on to aid
he farmers.
Here is the statement sen; by Gov.
Hamlin To all Federal reserve banks:
In view OF the impending opening OF
the Federal reserve banks. the Federal
Reserve Rlard deems II proper to out
line in this circular In broad general terms
the discount policy which Il believes
might be pursued 10 advantage by the
Federal reserve banks at the outset
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
Statement of Conditions Need
Not Accompany Papers
Until January Is.
PROVISION MADE TO
ASSIST THE FARMERS

banks the proceeds of which have been
or are to be applied TO permanent In
vestment. issued a regulation mo. -
which reads In part as follows:
"All paper offered for discount under
this section to any Federal reserve bank
must conform to the following require
ments
"First-It must be Endorsed by a ma
tlonal or state bank or trust company
which is a member of the Federal re-
serve bank to which II is offered for re-
discount
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
Urge Privileges for Pomeroy.

BosroS. Nov 1.-The Massachusctt-
Prison Commission recommended to-di'
to Gov. Walsh and his Council that tn
famous prisoner Jesse Pomeruy be al
lowed To go into the prison yard and Ee'
more OF an opportunity for iilprovemo NJ
OF his mental condition. Pomerov mas
been In solitary confinement for thirty.
eight years in the Charlestown prison
having been convi ted of atrocious mur
ders when he was l6 years old
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
Two Kinds Of Limitations.

The limitations relating to rediscount
operations. contained in section l3 OF the
act may be divided into two classes /;
First. those positive limitations under
which such notes drafts and bills of ex-
change may be accepted for rediscount,
and second. those limitations specifically
stating what paper shall be excluded.
IF We begin with the latter, we find
the very clear provision excluding all
notes, drafts and bills OF exchange which
are issued or drawn for the purpose OF
carrying or trading In stocks, bonds or
other investment securities Except bonds
and notes Of the Government OF the United
States). This clause does not require
comment
The act further excludes notes drafts
and bills OF exchange covering merely in
vestments.'
ANY funds employed in agriculture,
commerce or industry are quasi invest
ments and the emphasis Is therefore to be
laid on the word merely In this connec-
ton.
From this point OF view are TO be ex-
cludsd all bills whose proceeds have been
or are to be used in permanent or fixed
Investments OF any kind Agricultural.
Industrial or commercial purposes cannot
therefore be held to include investments
In land, plant, machinery. permanent i'm
provements or transactions of similar
nature
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
short Term BilIs.

"(C)-Rlls should be essentially
sclf-fduidating. Safety requires not
only that bills held by the Federal
res rye banks should be OF short and
well distributed mnturities. but In ad-
ditlon should be of such cha raCter
that Il is reasonably certain that they
can be collected when they mature.
They ought to be essentially self
llquidating.' or in other words. should
represent In every case Some distinct
step or stage IN the productive or dis
t-ibutive process-.the progression OF
goods from producer 20 consumer. The
more nearly these steps approach
the final consumer the smaller will
be the amount involved IN each trans
action. as represented by the bill.
and the more automatically self
lluuidating will be its character.
Double name paper drawn on
a purchaser against an actual sale
OF goods affords from the eco
nomlc point Of view prima facte evil
dence OF the character OF the loan
tr nsa ctlon from which II arose sin.
gle name notes. now so freely used
in the United States. may represent
the same kind OF transactions as
thosa bearing two names.
'InaSmuch, however, az the single
name paper does not show on us
face the character OF the transaction
out OF which Il arose--an admitted
weakness OF these forms of paper
IL is incumbent upon each Federal
reserve bank to insist that the char
acier OF the business and the general
status Of the concern supplying such
paper should be carefully examined
in order that the discountng bank
may h, certain that no such single
name paper has been issued Tor pur-
pose. excluded by the act, such as
Investments OF a permanent or sp@cu-
lative nature.
"Only careful inquiry on these
no,nts will render II safe and proper
for a FEDERAL reserve bank TO con-
s,der such paper self-liquidating'
investment at maturity.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12

"Second--Such bank must. with It's i'm
dorsement waive demand notice and pro-
test
the form OF notes, drafts or bills of ex-
change arising out OF commercial trans
actions that liz. notes. drafts and bills OF
exchange issued or drawn for agricub
tural or Industrial purposes or the pro-
ceeds OF which have been used or are to
be used for such purposes.
"Fourth--If In the form OF acceptances,
they must be based on transactions in
volving the importation or expectation of
goods and must have a maturity at the
time Of discount OF not more than three
months to run. Furthermore. they must
be lndorsed by at least one member bank
and the total amount offered shall In no
event exceed one-half the paid up capital
stock and surplus OF the bank Offering
same.
"Fifth-The aggregate OF notes and
bills bearing the signatures of endorsement
of any one person, company. firm or cor
poration, redscounted for any one bank.
shall AZ no time exceed 10 per cent. OF the
unimpaired capital and surplus OF said
bank but this restriction shall not apply
To the discount of bills OF exchange drawn
in good faith against actually existing
values
Subject to these limitations II devolves
upon the Federal Reserve Board to deter
mine or define for the several Federal
reserve banks % notes, drafts and bills
OF exchange eligible for rediscOunt; 90
bank acceptances eligible for rediscount.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12

at should he borne In mind that al
though our exports are showing a gratiry-
ing Increase there Is still large cash
balance due to European countries Tor
which gold may he demanded and that
large quantity of American securities held
abroad may be returned to the United
States, while on the other hand more than
$500, 600. 900 OF emergency currency must
be gradually retired.
at IL probable that at tho end or the
war interest rates in Europe will be
higher than they have been in the past
md greater investment returns Will be
yielded The tremendous destruction Of
property and waste Of capital will not
only check the Aow OF European savings
to the United States, but may dispose
foreign investors TO return us the Sc
curities they now hold. Lower money
rates in this country would be likely to
accentuate this tendency, while on the
other hand higher rates and larger In
vestment returns on our side would check
II,
THE function OF the Federal reserve
banks Is therefore Of twofOld character,
They should extend credit facilities. par
ticularly where the abnormal conditions
now prevailing have created emergencies
demanding prompt accommodation and
on the other hand they must protect the
gold holdings OF this country, that such
holdings may remain adequate to meet
the demands made upon them.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12

81, ,yould no understood that the Fed
oral reserve bank could at any time call
for the appropriate credit file, ana IL may
we'll be expected that the data thus gain
ored--part!cularly the MES or more I'M
portant firms and OF those rediscountlng
in larger amounts--will be 80 catalogued
a. 10 furnish the nucleus OF an effective
credit bureau, which In turn may eventu-
ally develop into central credit bureau
for the benefit OF all the Federal reserve
banks of the system.
For the time being certified account
ants statements Will not De reaquIoo'
This matter Is reserved for regulation
al a later date The required state
ment. as outlined above should be signed
under oath and should contain n short
general description OF the character OF
business, the balance sheet ana the
profit and loss account. Assets should
be divided Into permanent or hNed IN
yestments. slow assets and quick assets
on the liability side should be SHOWN
capital. long term loans and short term
loans, -
"Short term loans should he In proper
nroportIon to quick assets and the state
ment should contain sufficient evidence
that short term paper IL not pelhe SOU
against permanent or slow investments
Tho statement should Furthermore show
the maximum aggregate amount up to
which the concern supplying this paper
expects to borrow on short credit or sale
of its paper and the concern giving the
statement should obligate Itself to obtain
the member banks consent before exceed
ing the agreed limit.
"The aifixing OF the stamp stating such
papcr TO be eligible for redscount will be
considered a solemn and binding declara-
tlon by the member bank that the state
mcnt has been examined from this point
OF view and that the paper bought com
\ ali hn rnnHItl
and the regulations hereby imposed.
"The board appends two additional reg
ulations: No 3, covering discount trans
actions on or before January IS; No. T.
discount operations on and after Janu-
AIRY 10.
six Months Paper.
"rhe law provides that the Federal Re
serve Board shall fix the percentage or
its capital (by which Is understood the
portion OF the capital paid I'M, up to
/ which a Federal reserve bank may dis
count notes, drafts and bills drawn or
issued for agricultural purposes or based
on live stock and having maturity not
exceeding six months The law permits
the Federal Reserve Board TO deal with
each reserve bank individually in fixing
this limit,
''The Federal Reserve Board has de-
termined to AK this limit generally and
until further notice Mt 20 per cent OF the
capital that shall have been paid in from
time to time For those districts in which
during certain seasons six months paper
/ is particularly required to carry through
great operations the limit will be in
creased from time to time upon request
nude by Federal reserve banks to the
! Federal Reserve Board"
! The board, for the guidance OF the
/ Federal reserve and member banks in
observing the injunction contained IN
the law that no bills shall be admitted
! to rediscount by the Federal reserve
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
Must Use Caution.

while credit facilities should he lib
orally extended in some parts OF the
country, 1t would appear advisable TO
proceed with caution in districts not In
need OF immediate relief and to await
the effect OF tive release Of reserves and
of the changes which the credit mech
anism OF the country liz about to expert
cnce before establishing n definite dis
count policy.
Commercial Paper--Thc Federal Re-
serve Board. under Section IS OF the
Federal reserve act, has the right to de-
termiue or define the character of paper
eligible for discount to wit notes, drafts
and bills Of exchange arising out of ac-
tual commercial transactions. that is,
notes, drafts and bills of exchange is-
sued or drawn for agricultural, Industrial
or commercial purposes or the proceeds
OF which have been used or are to he
used for such purposes
Bearing in mind the requirements Of
serve Board believes that II would be
iuadylsable at this time to issue regula
tons placing a narrow or restricted in
terpretation on the section defining the
character ~ paper eligible for discount,
1t has. therefore, been decided not to
enter upon the discussion OF tho ques-
zion Of single or double name paper at
Ibis time. but to admit both forms of
bills to rNdiscount with the Federal re-
serve banks.
THE Federal Reserve Board pro-
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12

The news OF the lifting OF the embargo
was received on the Broad street curb
with much enthusiasm. A large crowd
collected and dealings were promptly re-
sumed practically under the old condi-
tons. The amount of business done was
small. 1t would undoubtedly have been
larger had there not remained good
deal OF uncertainty az tC how the new
ruling affected the position taken by the
Curb Association against all trading.
The Curb Association announced that
tho curb market IL still officially closed
and will remain closed. Nevertheless, Il
was also announced that trading would
be permitted In view OF the new ruling,
provided there be no publicity and no
signalling OF orders and prices. such as
usually goes on. A meeting of the asso-
citation Will be held tomorrow to con-
slider the advisablllty OF Imposing further
restrictions
The fact that the curb market has not
officially reopened deprves all trades OF
their official character This IL Is ex-
pected. will greatly hamper trading. Peo-
pie will deal there at their own risk, since
II will be impossible to invoke the au-
thority OF the association when disputes
arise.