davidaulloa/AmericanStories huggingface dataset:
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
Praises Reserve system.

CONGRESSMAN Glass declared that the
passage Of the new banding law was
legislative miracle. After explaining the
earnings OF the reserve banks Mr.. Glass
added
Il predict that in a very few years un-
der this system your national Rreenbacks
now outstanding to the amount Of S2is.
1000, with only $3.50. 900 Of gold re-
serve VIII have behind them gold dollar
for dollar and there will be not one sem
bance OF hatlsm in our national cur
rencv.''
Secretary Harrlln outlined tho opera
tons of the Federal reserve banking act
and said
1.-The United States Treasury IS in sound
financial condition II possesses ample
funds OF gold and ample power 70 increase
tho gold reserve should II ever be neces-
sary.
"One can state with confidence that the
Federal reserve system at the outset viii
increase the lending power OF the national
and Federal reserve banks by some hun
dreds OF millions OF dollars An amend
mont Is now pending In Congress under
which member banks may keep all their
reserves In Federal reserve hank. This
will greatly increase the lending power OF
the Federal reserve banks thus Increasing
their power To cope with the present alb
normal conditions"
Mr.. Littleton spoke on The VIII of the
People" He declared the people OF the
United States lived under the greatest
Constitution In the world and that il
would ever be upheld by the courts of this
country.
j, w. Hopes, treasurer, presented his
report on the progress of the association.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
EXCHANGE IS HIGHER
DESPITE GOLD POOL
Committee Defends It's Course
as Influence to Prevent
Speculation.
CALL TO NEW YORK BANKS

The gold fund committee sent out no.
tices yesterday to all the banks in New
York which have agreed to participate
IN The $lOOo 900 pool asking them
TO send In their part of the first S2j, 00O.-
600 OF the fund. Tile call was Ia purely
formal one and was practically the same
as that sent out by Albert H. Wlggin
to the other banks and clearing house
associations throughout the country on
Tuesday OF the $50, 900. 600 New York
will furnish s11,2j0,OOO.
Members Of the committee said last
night that tho amount TO he shipped TO
ottawa would depend entirely upon the
need. II was authOrltatlNely said that
not all of the first shipment OF 10000
600 has been used.
Foreign exchange rates continued their
upward movement again yesterday In
spite OF the operation OF tho gold pool
In some foreign exchange circles the feel
ing IL expressed that 50 long az the
exchange committee OF the gold fund
continues 10 sell exchange at =, OF a
cent above the closing prices Of the pre-
vious day in the exchange market rates
will be marked up rather than down. on
the other hand, st Is explained that the
gold pool committee does not Intend TO
compete with the exchange brokers. rs
70 90 80 Nbulu tUftullN FNlaNSl NlflF
available supply OF exchange. 1t Is
pointed ont that the gold fund commit
tee intends only TO act az n stahilizer
IN the exchange market and keep persons
from going long of exchange. thus rats
ing the price and encouraging specula-
ton.
Demand sterling closed NJ 4.a7is az
compared with 1863 on Tuesday. while
cables closed NJ ass. against 497oa
Paris checks and cables sold at 5.05. un-
changed from Tuesdays quotations.
Mark cables and checks were somewhat
firmer, closing at 92i5.
II became known that J. p Morgan &
Co. and Kuhn. Loeb u Co, as syndicate
ma nagers OF the New York city 800. 0O0.-
600 loan. had issued the call for the
fourth instampnt OF the loan. This pay
ment will call for about s7.G7s. 600 in
gold or IN exchange. AS pointed out In
yesterdays SuN, this was considered a
contributing influence In keeping the rate
| on London exchange up. as many banks
| prefer 70 pay in exchange rather than
| to deplete their gold reserves
There was withdrawn from the Sub
Treasury yesterday for shipment 20 Canada
1922. 900 IN gold coin and from the Assay
Office 100000 for the same destination.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
FAILED BANKERS BOND PAID.
Four other suits for 100000 Each
Are Pending.

ALBANY, oct. 1i.-Attorney-Genera
James A. Parsons received certified
checks today for 100000 one for s3i 900
from the London-Lancashire Guarantee
and Accident Company of Canada. the
other for sec 200 from the Maryland
Casualty Company both hondsmen for
J.. w. Schwenl;. a private banker Of New
York city. doing business under the
name OF A. Grochowsti & Co. and re-
Gently declared bankrupt The mohev
will he turned over 10 q receiver who will
distribute 1t among the depositors OF the
institution.
Four other actions TO recover on bonds
OF private bankers are now pending.
Tho defendants and the amounts Of the
bonds in these suits are; Aetna 40
cident and Liability Company, for Adopn
Mandel. s100 900 American Bonding Com
pany Of Baltimore. for Meyer jar
mulowsky. 100000. Maryland Casualty
Company for Max kobre. 500. 900.
Deutsch Bros. are tho other defendants.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
CURB TRADES AGAIN,
FOR A FEW MINUTES
Then Stock Exchange Rules
That Dealing Must BE Over
the Counter.
PRICES ARE ENCOURAGING

Curb trading started yesterday morn
Ing for the first time since July 30. 1t
Ia sted, so far as any volume OF trades done
on the open air market OF Broad street
was concerned, for about fifteen minutes.
After that length OF time of quite active
business. with much OF merry wigwagging
OF prices between the men In the street
and the telephone boys IN the windows Of
adjoining buildings. the Stock Exchange
spoiled II all Non-public or over the
counter trading took Its place.
1t seems that the committee which rules
the curb stocks, namely the committee on
unlisted stocks had not intended when 1t
ruled that unlisted stocks under $40 last
selling price could be traded in without
reporting transactions that public trading
on the street was to be permitted. Its
purpose was to confine such trading to
over the counter transactions. with no
published quotations
A number Of curb men did not take the
ruling that way. At 10 o'clock yesterda v
therefore Broad street had resumed its
old appearance Mining stocks. United
Cigar Stores and Rilker- llegeman occupied
the chief attention OF the market and
were handled IN fairly large volume.
The Grading suddenly Guieted ana grad
ually fell OF. The explanation was soon
Forthcoming. il was announced that the
Stock Exchange special committee Of fve
members must report all transactions In
unlisted stocks 20 tho committee governing
those stocks As most Of the curb trans
actions OF the short term market on the
street had been through Stock Exchange
houses. trading Immediately declined. l.
was kept up in d"sultory fashion BY a
few Independent curb brokers' but prac-
tically ceased by noon Subsequently.
trading In the unlisted stocks OF last SELL
ing price less than SO wont on over the
counter or by telephone. The committee
on unlisted stocks permitted Stock EN-
change houses that desired to trade In tho
stocks on which the ban was lifted to do
so without reporting Individual trans
actions. Public trading on the curb Is
therefore practically finished for the time
being.
The prices made or the curb while the
trading lasted IN the unrestricted stocks
COMPARED favorablv with the prices a.
closing on July 20. The declines We're
small. In most cases only fractional. In
one important Industrial stock the price
of sale yesterday was points higher
than the closing. There were several
othor important stocks quoted slightly
higher than the closing
There was criticism by some curb men
yesterday against the practice OF score,
quotations which IN the past has led t.
number OF abuses in which customers
have suffered.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
WILSON TO VETO
PLAN FOR j. 5. TO
AID COTTON MEN
Continued from FIRST Page,

Establishments, aPriculturaf resources,
TRANSPORTATION companies and financial
interests, and which will undoubtedly re-
ceive universal support throughout the
nation.
"Tne task put upon the Federal Re
serve Board, while onrrOu9. was readily
accepted by Secretary McAdOO, who rec
ogni2ed the gravity Of the situation, the
necessity Tor action, as well as the prac-
ticabll,ty OF the plan TO meet the silva
ton, and Il Is understood That through
his guiding influence the entire tund OF
Si5O 600 900 was made available 10 the
cotton growers of the South at very
moderate rate of interest when 1t is con-
sidrrcd that the loan is made 10 run
year II the borrower so desires and the
borrower can pay the lender NJ any time
he may market his cotton, or otherwise
Iiquidltc his obligations.
THE committee had telegraphlc advices
from Arkansas. Georgia, Louisiana, Ms
sisslppl South Carolina, oklahoma. Texas
and Tennessee. that each OF these states
vould unouestionably contribute their pro-
nortionate part of the S50,0OO,000 which
] vas allotted TO the South as It's share
of the fund. II is expected that all or
the eastern northern and western parts
NJ the country will he asked 10 contribute
nov that New York has spoken, particu-
/ larry SO as the management or tho 1und
| win he placed in charge OF the Federal
| Reserve Board at Washington,
"The President Secretary McAdoo ana
! the Federal Reserve Board having al
ready approved the plan of raising the
| $50. O00. 600 fund 10 loan on the surplus
| cotton crop. It is generally understood
that all departments Of the Government
will be put behind the surplus cotton crop
70 rauidIy increase It's export and also
! IN deyelop the sale of the product to the
| Now England and Southern cotton manu-
| racturcrs of the nation"
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
SEEK HILLS PART IN
NEW HAVEN DEALS
Late Governors Attorney Asked
About ST, 100000 Note in
Strong Box.
SURPRISED. AT THE FIND

Since the discovery Of the alleged
s1b0o,O0o New England Securities Com
pany note IN the strongbox OF the late
Gov. John +. Hill OF Maine. the Federal
Grand Jury's Investigation into me build
ing UP of the New Haven system has
apparently taken n new tack. The first
witness called before the investigating
body yesterday was Norman L. Bassett,
one OF the attorneys for the i'm estate.
Mr. Bassett In n leader OF the bar OF
kennebec county. Maine. and personal
counsel for Mrs. Hin. Although ne pro-
fessed surprise as TO the discovery Of the
note, II IL believed that he II wanted 90
tell the Grand Jury what Connections, II
any. the late Gov. 1illi had with the
acquisition by the New Haven OF the
Metropolitan Steamship Company and
other water transportation facilities.
Definite information concerning the
note In Gov. ITills strongbox Ii believed
TO be sought by the jury and the Gov
ernmeut attorneys on the theory that the
note played an important part In the pur~
chase Of some OF the water transporta-
ton companies. II was made out by the
New ENGLAND Securities Company to the
Billiard company. through which the New
raven NOntTOUeu Ine majority ttoCh III
the Eastern Steamship Corporation.
The latter corporation IN turn owns the
Met ropoltun steamship Company. Uper-
atlng between New Yorl; and Boston the
Maine Steamship Company operating be
tween New York and Portland. and the
Eastern steamship Company. which was
a consolidation OF all the lines between
! Boston and points on the Maine coast.
Charles W. Morse. former president Of
the Metropolitan Steamship Company, has
said that ne knew OF the existence OF the
81 500. 900 note He thought that II had
been deposited for safekceping with Gov.
Hi.
The note was secured by $500 shares OF
the stock OF the Ea stern Securities Com
pany. the holding company for the
Eastern Steamship Corporation. This and
other facts have led 70 the belief that
the note was either used in the purchase
by the New Haven through the Billiard
Company Of additional shares oc stock IN
! the Eastern Steamship Corporation. or that
| 1, covered an advance % money TO the New
| England Securities Company. which, the
| Government contends. was formed for tho
| purpose Of facilitating the purchase OF the
water transportation companies.
| The object OF the Government IN calling
representatives OF the Hill estate before
| the Grand Jury was understood IN he TO
shed some light on this particular point
| as well as the late Gov. Hill's part in the
| transactions.
| The second witness called was Benjamin
| O. Ward "A lawyer, who also comes from
| Augusta, Me.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
PULLMAN PROFITS GROW.
Net Proht without Deprecistio
Reaches 1882 Per Cent.

The year ended July 81. 1914, was n
profitable one for the Pullman Company.
according 70 its annual report Just issued.
The net income after the payment of ex-
penses and before charging out for depre-
citation was $21.397. 4GS. which was equal
70 Use per cent. earned on the $780,
600. 900 capital as compared with 1856
per cent. earned on the same stock the
prey !ouS year TIE total income was s44-
72N5l4. against sac, s6o.s9l. with net In
come Of s2l.397.i 63, NJ compared with
sl9.S7O2o6 The balance after the pay
ment OF dividends was s1.2i5,353, against
si.541 500 on July 81. 1918.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
RAILROAD MEN OPTIMISTIC.
Pleased at Suspension OF Tariffs by
Interstate Board.

Railroad men were Inclined last night
to take an optimistic view OF the ruling
OF the Interstate Commerce Commission
suspendng from October 90 to April Is
the tariffs already filed with the commits
sion relative to making charges for special
services.
The head of one OF the large railroads
In the East said that he believed that Il
was an indication that the commission
felt that there might be another way Of
raising the revenue needed by the roads
than by these special charges and that
Il might be an indication that the roads
were TO get tho full . per cent. increase
in freight rates
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
safety First for Bankers.

Tho rule of the banker must he safety
ftst, regardless OF contraction. He owes
this duty to his deposItors ana stock
holders.
III We had any assurance that the
Federal reserve banks would held larRa
deposits aside from those which the Gov
eminent may place with them. there might
he q workable margin, but as both tnn
capitalization and deposits of the reserve
are forced ! see no inducement for mem
he- banks 90 keep active accounts with
tho Federal reserve banks beyond the
amount Of the required reserves. Their
commercial relations with the other banks
OF the country viii always I've more pro-
ductive, and AZ the same time conform
70 the natural trend Of business, besides
which they now receive interest on their
daily balances kept with their corre-
spondents.
zone OF the deficiencies Of our present
national banking system is our inability
TO establish or maintain a foreign eX-
change market The new system opens
the way TO supply this long felt want.
While "A single central institution could
more easily control the exportatiOn OF
gold by the operation OF such n market.
vet Inv proper action the Fedora! Reserve
Board may 90 coordinate the business OF
the twelve reserve banks as TO produce
the desired result.
zone feature Of the act creating the
Federal reserve banks, TO which little Il
any reference has been made. is found in
that clause Of the law which leaves "a
the discretion OF the Secretary OF the
Treasury the continuance or discontinu-
ance OF the United states Independent
treasury system.
ct Is q Just criticism OF the measure
TO say that IL does not take the Govern
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15

The board OF directors of the Federal
Reserve Bank OF New York will meet to-
morrow 10 designate what directors shall
serve for terms OF one, two and three
years ~ provided in the Federal reserve
act. The entire board will also go TO
Washington on Tuesday 10 attend meet
ing OF the directors OF aN the various
Federal reserve banks and the Federal
Reserve hoard
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15

ATLANTA oct. 14.--It was decided by
the Georgia Bankers Association nj a
meeting here to-day TO subscribe Sio-
600. 900 la tho proposed S5o,oo0,0oo pool
to retire 5,0oe.o 900 bales of cotton from the
markets
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15

th"N IL upOh oHt VI out NroNfIh-
ment officials an extraordinary power and
discretion. unwarranted by the spirit OF
our institutions and repugnant to repub-
lican principles.
Lawmakers Criticised.
1T would seem that our lawmakers had
failed TO recognize the momentous change
which has been wrought by the great In
dustrial expansion which has taken place
throughout the entire world and viewing
II only from the standpoint OF our domes-
tic condition are seeking TO turn back the
tide OF progress by repressing the orgnni-
cations which the evolution OF the new
condition required for It's continuous
operation and development and which have
involuntarily sprung into existence all
over the country.
The political factor in the situation II
the stumbling block to progress In the
right direction. Public opinion when prop
eriy Informed Will not tolerate tho con-
tinuance of the present programme when
it realizes that such course will handi-
cap this country In Its competition with
other nations whose policies are the re-
verse Of ours In order to establish a
seem TO me that we should be compelled
to sacrifice our business progress. surren-
der our rights as business men and DO
forced TO delegate tho control OF our own
affairs into the hands OF Government APP
pontees.
while the purpose at the beginning
was ostensibly to curb some large cor
porations and combinations which were
said TO be exerting their power " "A
vicious manner. now the idea seems TO
have spread and includes all business.
These attacks have already shown their
results; happiness has been succeeded by
discomfort apprehension rules where con-
fidence and optimism formerly predom-
mated
The time has come when we must
take II more active part in tho practical
politics OF the day. for the banker and
business man 70 WELD that influence in
our Government to which they are en-
titled must make more effective use OF
their citizenship in the future.
Business men have too long accepted
legislation without protest or criticism
through fear OF more radical measures In
punishment OF their efforts. The tNIne ha $
arrived for positive action by the bust
ness man In public affairs. Upon the
course which you az individuals pursue
will depend the results which may be
secured.
The business men OF the country are
anxious TO see the end OF the depressing
influence Of Congressional interference
and bureaucratic restriction; they regard
present methods rnther as tyrannical than
liberal and no progress toward permanent
prosperity II possible under a continue
ton in tho present course
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
DC tobe rSl2th ASIA.
Publ sher,
New York ; Sun.
New 70 TX City.
Dear Sir:-


Real izing the dampenin sc fleet 1.-THE Euro.
pean war naturally putt bus in
ar was first 1t was probl teal inymy
"1nd at that time whe Their it
to carry out the intended advert
empl ated. The effect apS
In the automobi lie bust sbeen
pl entif full during August and
has become nee essity we'll pleasure
user, and as the papers giving less roomsto
war news and more space to local of
terest. dec 1ded, when took the MITCHELL
weeks ago, to try out
campaign for two or three weeks newspapers
Will Oh included the New York Sun. probably
be pleased to hear that the results
FAC tory that have determined
ing campaign for the eight or ten weeks This
proves to me conclusively that time adver-
Using 1s most valuable and
have. given excel lent turns.
MY only object in writing Thu
that II other business who have goods merit
TO sell would stop talking and hard and
advert1 their wares in good mediums like the
YORK sun. they would find that business
bad they think is and ,al so ~that.it
paysytos ADVERTISED.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
Poison Kills Navy surresn's, wles.

by mistake resulted IN tho death Cnts
afternoon OF Mrs. Georgia L. NJ PryuN 10,
wife OF Surgeon James c. Pryor u. GIN.
who Ia now northward bound from 0aDpfps
az Vera Cruz
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
THOUSANDC CITY
MERCHANTS GET
TRADE SECRETS
Con,ulS-Gencral of Many
Countries Present at AS
ISOLATION Luncheon.
PERMANENT BUSINESS.
NOT BOOM. Is SOUGHT

Ns..'v thousand merchants and
. .-.-l.u'ors OF New York yesterday
.t,u.I Go addresses on the various fac
,.rr t.r.i.ed in the commercial conquest
o, 5 H,h America nj a luncheon given at
g. Hotel Astor by the members coun-
a. OF o." Merchants Association. will
l... 90 Hle,i. the postmaster. In intro
Gu.v- tho twenty-siN Latin American
and other foreign consuls-seneral who
we're 20 tie speakers table said II was
~ fno purpose OF the Merchants AS
ISOLATION ~ arouse a boom spirit over
ira expansion, hut rather TO dissent
rate practical Information and to stir
to Government to helpful legislation.
TIE financial. practical and educational
aspects involved in seeking South Ameri-
can trrde were presented by w. s. Kies,
John $ Fowler and Charles NJ Pepper.
Mr X es who Is at the head OF the for
en- trade department OF tho National
cry Bank said:
London being the financial market OF
The world. and the English pound sterling
being the accepted standard IN interna-
tonal transactions England has had
great advantage in exchange operations
Tho fact that there has been ready
discount market for South American bills
m London at all times has also been to
her advantage.
To Discount Foreign Billa
-ore provision Of the Federal Re
serve act permits national banks to dis
count foreign bills which are the result
o. actual commercial transactions, and
also gives 20 banks the right to accen,
bills drawn against merchandise. A not
lncousier thlo factor In the growth OF
London as a financial centre has been the
ec,iy.U OF the large English acceptance
houses London always presenting a rendv
market Tor discounting South American
hlls Il IL not strange that the sight
draft on London has been the accepted
method OF excitement OF obligations in in
tornit'ual trade.
"TAe building up OF a discount market
VII help to solve the problem OF long
credits which has proved such "A handicap
In the doing of business with South
America.
"Prohlh'y Latin American countries are
tie most difficult in which to obtain credit
Information. The Latin American ls sem
st'v'. a'l with him credit is usually a
point Of honor
"A publication to he known as the
i '.oon will be devoted u the upbulld-
,e OF trade between the two countries
tide bulletins and letters will be is
sued from time to time.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15
Not Complete Yet.

"A limited number OF banks and trust
companies organized under State laws
have also come into the system. but not
to the extent necessary to warrant the
anticipation Of that complete unificatlon
OF our entire banking system 80 long
desired
"Al those banks who have Joined are
giving The system their hearty support,
but only the wisdom OF management
by the directors and officers of the vari-
GUS reserve banks and OF the Federal
Reserve Board can insure the success Of
the experiment.
THE principal object in view by the
orignators of the plan was 70 add stah!l-
ity 60 our banking by devlsing system
that would alleviate the periodical strin-
Eencies to which business in this country
was subjected and 10 prevent those dis
astrous pancs which followed. Any op-
GRAFTON under the system which by an
immediate return to the channels OF COM
mcrCe by the rcdisroun;ng plan. to pre-
vent the contraction Incident to the with
drawil Of so large q sum from business,
would 20 that extent defeat the ability Of
the Federal reserve banks to relieve any
strugency. l. ssoms to me that if these
banks are 20 be always In a condition 10
ward OF disaster that we will at the be-
ginning be compelled 10 submit ourselves
TO some contraction. To hold both posi-
tions Is Illogical. II not impossible.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-15

ment out of the banking business, and
that Il confers upon one of our Govern
ment officials an extraordinary power and
discretion. unwarranted by the spirit OF
our institutions and repugnsnt to repub-
lican principles.