The Birmingham age-herald., 1914-08-03
Object to Strengthen Spirit of Co-OperatiOn Between Government and
 Banks
S1OO,O0O,000 SHIPPED FROM WASHINGTON
 TO SUBTREASURY
Harding and Other Members of Fed eral Reserve Board Go Over Situa- ton Thoroughly-ConditiOns Are
 Caused by Number of Causes
 Country in Splendid Shape

Country Tn SplenOl0 Sndpe
 Washington, August 2.-Federal govern ment machinery was turned today toward the perfection of plans to fortify tn, American banking system so that the ma tions share in the financial burden O. Europe vii be distributed and it's direct effects minimized.
 Conferences at the White House ano treasury department at which the stu- ation was discussed, eliminated late to- day in the departure for New York oi Secretary McAdoo and Comptroller of the Currency Williams. They have govern nent authority to put in operation the plan by which the national banks of the country can obtain 1000 in currency under the Aldrich-vret kand act.
 MT. McAdoo today declared he consid- cred the country to be in excellent shape to take care of itself. President Wilson also is confident that any condition which arises can be met.
 MT. McAdoo and MT. Williams will con fer with fnanciers in New York These conferences are expected to strengthen the spirit of cooperation between the gov ernment and tte banks. MT McAdoo may return to Washington late tomorrow to meet representatives of clearing house associations of Chicago and St. Louis now en route to the capital. In official cir cles it was thought any unusual strain would be manifest first in New York. Both the President and MT. McAdoo were anx- ious that the highest government f1nan- cial authority be on the ground.
 $1OO, 1000, 900 Shipped East
 The treasury today shipped about s100,- 000, GOO of the Aldrich- Vreeland currency to the subtreasury in New York. This currency can be issued on the~securlty of high class commercial paper or state and municipal bonds. Commercial paper used for this purpose must be approved both by the bank which asks for currency in exchange and by the special association of which the bank is a member. In ad- dition the security must be acceptable to the government. Some officials in Washington expect MT. McAdoo to use his influence to keep the New York Stock exchange closed for sometime. He is ex- pected to show that the government does not favor the reopening of the exchange at this time, and the speculation which may follow. The impression also was ev- ident among officials tonight that party differences in Congress to be laid aside for the present and that the Presi- dent and his advisers can count upon unanimous support in any measures they deem nedful to meet conditions.
 There has been no call from outside New York for Aldrich-Vreland currency. The treasury is stocked with many millions more of bills ready for instant shipment. This fact is expected to have a reassuring effect throughout the country. |. Inf al fan ntp ic tIn r;t of sS4.Oo0,0O0 by the treasury in national banks for moving crops. This will be available soon as the banks comply with the conditions laid down by the de- partment.
 McAdOo COnfers With Financiers
 It became evident today that the first concern of the administration is for Amer ican financial institutions and that Ques- tions of foreign exchange and interna- tonal finance are to be relegated to the rear Early today MT McAdoo had a long talk with Max May of the Guaranty Trust company, August Ulrich of Laden burg, Thalman & Co.,, and Franklin e. Brown of Redmond X Co.,, all of New York. MT. May and MT. Ulrich called particularly to discuss the questions oi foreign exchange No concrete plan, how ever, was adopted by which the govern ment will mix in affairs between Amer ican and foreign bankers.
 The New Workers returned to New York today and are to call a meeting of foreign exchange bankers there to- morrow. There was passing reference to the creation of a $100, ,000,000 fund for the use of English bankers, but is was ex- Ilained, however, that 1t is not intended 10 have the United States government lay aside such a sum to the credit of British bankers. It was the understand ing that it might be found necessary for New York foreign exchange houses to extend a large line of credit to British institutions of known soundness. 1t was made clear that the treasury, willing as il is to give every possible aid, regards this matter as one to be arranged be- tween the bankers concerned.
 Officials have observed the protective measui es taken by European countries to keep intact their stores of gold. II seemed probable tonight that the ad. ministration might be called upon to keer American gold here and give European paper in exchange.
 Although there is every prospect thai customs revenues will fall off sharply the administration is said to have nc definite plans to provide for revenue in other ways. The House is expected to pass promptly legislation which already has gone through the Senate removing certain restrictions in the Aldrich- Vree-
 
 President may an the members of the federal reserve board In office and the new federal reserv banking system in operation. Organization of the 12 reserve hanks would immediately have a marked effect for good upon the situation in the opinion of officials.
 C0nfers With Treasury Officials
 Before leaving for New York MT. Me- Adoo conferred with John Burke treas urer of the United States, and George E. Roberts, director of the mint. Accord ing to the treasury statement of July 29 the United States had S7S6.549, ,522 in gold coin, S236352,347 in gold bullion, and nearly a half million in silver dollars ir what is termed it's current trust funds be- sides 0000 in gold coin and bullion in the reserve fund.
 Its cash assets were $2s7 ,306 359, with c grand total of assets amounting to about $1,950 100000 The principal liability of tn; government is in gold certificates amounting to little more than $1, ,000, ,000, GOO. Many of these gold certificates are ~ held by hanks, however. and there i, hardly chance that there will be 2 necessity for their redemption.
 To Fight for Warburg
 Announcement was made at the White House tonight that Attorney General Me Reynolds had advised the President tha