New Britain herald., 1914-08-04
VOTESB|Lu|ONDOLLARS
 TO MEET SITUATION
Congress Takes Prompt Steps to
 Cope With European Crisis.

Washington, Aug. 4.-More than billion dollars in currency is to be aoded to the circulating medium in the United States, by the action of congress yesterday, to meet the situa- ton resulting from the European crisis. This new money. backed by the prime assets of the banks, may be issued under a modification of the bank law, passed in both house and senate. then compromised in confer ence, and approved by the administra tion for final action in both houses today
 All national banks and all state banks and trust companies, members of the new federal reserve system and those who have agreed to join, may issue notes under the Aldrich-Vree- land section of the bank law, up to one hundred and twenty-five per cent. Of their combined capital and surplus
 Based on $1.7eO. .oOO, 900.
 There is approximately s1,760,0o0.- 900 such capital and surplus upon which issue of notes may be based. Of that. about $500, 900, 900 invested in government banks is not available.
 Approximately s900, 900, plus twenty-five per cent, is therefore ready as the basis of issue. Inasmuch as issues of clearing house certificates in this country never have exceeded $500, 0,000,0 900 in times of most dire dis tress the issue available should more than care for any situation.
 The senate imposed a further con- dition that the banks shall deposit ,..,I. .l,z ..,.& ( issue, a good reserve of not less than five per cent, and that the new notes shall be apportioned geographically.
 In New York District.
 Banks in the New York district, for instance, may issue only a sum pro- portionate to 125 per cent. of their ca pital and surplus that way the new circulation is expected to be dis tributed throughout the country, car ing for local banking needs and in- Custries
 As originally proposed by the sem ate the banks might have issued up to the former limit of five hundred millions. The house yesterday removed all restrictions as to the amount. The senate. thinking a limitation wise, amended the proposal to limit the is-
 
 and the extra twenty-five per cent was added in a conference as a com promise.
 Hundreds of millions of the new notes are ready for the call of the T apks: shipments to financial centers have begun and the bureau of engrav- ing is making more night and day.
 For Further Relief.
 Further relief for the situation was expected by tho organization of the federal reserve board. Paul M. War hurg's delayed confirmation was ad- vanced by his examination in the banking committee today, and Chair man Owen predicted a favorable re- port and not more than three votes a gainst him in the senate
 President Wilson selected his nom inee for the place Of Thomas D. Jones. but will not disclose his identity until the man accepts
 in Support Of Banks.
 The treasury department yesterday continued to give it's moral and physi- cal support to the banks of the United states. During the day it responded to requests from national currency as- scciations in various parts of the country and put in the hands of ex- press companies millions in Aldrich- Nreeland emergency currency. Ship ments were made to several large cities in the middle west and as soon as possible all sub-treasuries will be sup piled with sufficient currency to meet any demands made by banks in their territory.