New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-01
OF US.
FUND TO new YORK
Hine and Woodward Go
to Capitol to See About
Emergency Issue.
DAY OF CONFERENCES
FOR BANKERS OF CITY
Business Here and Throughout
Country Sound, Says Clear
ing House Committee.

ing House Committee.
The closing OF the Stock Exchange TO
check the heavy liquidation of securi-
ties at home and from abroad, arising
from the probability OF general Euro
pean war, and the continued drain on
the gold reserves of New York banks
resulting from continued expectation
of the yellow metal, caused bankers
here to take hurried steps yesterday to
prevent a possible money strinGency.
Francis h. Hine, president OF the
First National Bank and chairman or
the Clearing House Committee OF the
New York Clearing House Association,
and William Woodward. president Of
the Hanover National Bank, left last
evening for Washington to confer with
Secretary McAdoo about the issuance
of part Of the $500, 100000 OF emereen-
cy currency permitted under the Aid
drich-Vreeland act, which is still IN
force pending the operation Of the new
reserve law.
Following conferences of the leading
Wall Street bankers, which lasted in
termittently from 9 o'clock in the
morning until o'clock in the after
noon. the decision was reached to have
all the necessary machinery in readi-
ness 10 forestall any demands on the
reserves Of the banks which might
ieopardize their positions. The Offices
of J. P. Morgan G. Co., as in the days
Of the 1907 panic. when the elder Nor
gan was alive, was the centre of actiy-
ity.
Those who were in attendance at the
conferences included j. p. Morgan and
Henry p. Davidson, of the Morgan
firm; Frank A. Vanderlip, president OF
the National City Bank; a. Barton
Hepburn, chairman Of the Chase Ma
tional Bank; Charles II. Sabin, vice
president of the Bankers Trust Com
pany; Francis L. Hine. president Of the
First National Bank; Paul NJ. Warburg,
of Kuhn, Loeb & Co., and Benjamin
Strong, jr.. president Of the Bankers
Trust Company. So urgent we're tho
eXigencies of the situation that the
bankers continued their deliberations
at the Recess Club at their lunch hour.
Mr.. Hepburn said that the conferrces
had been in communication with Wash
ington over an amendment TO the Aid
rich-Vret and act, which would reduce
the tax on the emergency currency
which might be taken out from per
cent year for the first three months
and after that one-half of l per cent
a year until per cent was reached.
Mr.. Hepburn said there was no likeli-
hood of a money stringency If this cur
rency were issued, as the New York
banks would be entitled to at least
500. 100000.
At a meeting of the executive com
mittee of the National Currency AsSo-
citation of the City of New York later
in the day the recommendation made
at the bankers conferences were rati-
fed, and it was said that all arrange
ments so far as the New York bankers
were concerned were ready for the is
suance of the Aldrich-Vreeland emer-
gency currency. That portion of the
act which was specially designed 10
aid the banks in such times of stress
as these reads as follows. emitting the
voted by the Senate last
evening making the funds more easily
available by enlarginy the Secretary
of the Treasury's discretion:
"The National Currency Association
shall have power 20 render available
under the direction and control of the
Secretary of the Treasury as a basis
for additional circulation any securi
ties, including commerce al paper, held
by national banking association. For
the purpose of obtaining such addi-
tional circulation, any bank belonging
TO any national currency association,
having circulating notes outstanding
secured by the deposit of bonds of the
United States to an amount not less
than 40 per cent Of its capital unim-
paired ard a surplus of not less than
20 per cent, may deposit with and
transfer to the association, in trust for
the United States, for the purpose
hereinafter provided such Of the secu-
rites above mentioned as may be sat
isfactory to the board of the associa
tion. The officers of the association
may thereupon, in behalf of such bank,
make application to the Controller of
the Currency for an issue Of additional
circulating notes to an amount not ex-
ceeding rs per cent of the cash value
Of the securities or commercial paper
90 deposited"
The Controller of the Currency, if
satisfied with the character of the Sc
curities offered, may direct an issue
of additional circulating notes to the
association on behalf of such bank to
an amount not exceeding rs per cent
of the cash value of the securities SO
deposited; provided that upon deposit
of any of the state, city, town, country,
county or other municipal bonds, cir
culating notes may be issued to the eX-
tent of not exceeding 90 per cent of the
market value of such bonds so depos-
tied; and provided further that no
national banking association shall be
authorized in any event to issue cir
culating notes based on commercial
paper in excess of 80 per cent Of its
unimpaired capital and surplus"
Following a meeting of the New York
Clearing House Association, Mr.. Hine
announced that all checks for differ
ences due the Clearing House had been
certified, and that members had been
notified to call for drafts at the usual
hour. He issued the following state
ment:
"There was a meeting Of the Clear
ing House committee this morning in
view of the closing of the New York
Stock Exchange and its bearing upon
the general situation.
at was the opinion Of the committee
that the business and the financial
condition OF New York and the entire
country was sound, but that the situa-
ton in Europe justified extreme pru-
dence and self-control on the part of
the United States; that the closing Of
the exchange was wise precaution by
reason Of the disposition of all of