New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-04
REVIEW OF THE
STOCK MARKET
Currency Famine Now
Gut of Qucstion-BankS
Well IrtreLChed.


Much was accomplished yesterday
through the cooperation Of the local
banks, the Treasury Department and
Congress to reduce TO a minimum the
effects on this country of the general
war in Europe. Congress removed the
limit Of S5oO,OO0,OOO to the amount
of circulation that might be issued
under the kldrich-Vreeland law and
left the maximum to be put out at the
discretion Of the Secretary Of the
Treasury. New York's full quota is
not printed, but about $40, 900, geo of
the new notes arrived here in the
course of the day, and more will
como as soon as they are completed.
There were several applications by the
banks for the notes, but certain for
malitics had TO be complied with, and
the first of them will not be issued
in this city until to-day, In addition
20 what have been sent 10 New York
Sl0,000,000 has gone to Chicago and
100000 TO Boston and TO Baltimore.
The notes arc not TO be distinguished
from other banknotes, either in their
wedding or in their essential security.
The collateral behind them is Of the
highest character, and the circulation
tax. progressing from per cent per
annum for the first month TO 6 in the
seventh month, insures that they Will
not remain outstanding for an unrea-
Sonably long time or prompt an UNI
desirable speculation in either securl-
ties or commodities. The fact that
practically an unlimited amount OF
them is available makes il certain that
there can be no currency famine, such
as occurred in 1907.
experimenting the work OF the gov
eminent in making available the emer-
gency currency WAS the action Of the
Clearing House Association yesterday
in arranging for the issuance of Clear
ing House loan certificates, of which
over S20,000,000 were at once taken
out. These certificates may be used
only in settling the debit balances Of
the banks st the Clearing House. They
supplement currency, but they will not
be used to Supplant it wholly in the
clearings. Like previous issues made
in emergency times, they will not circu-
late outside of the banks themselves.
Foreign exchange bankers took the
definite action they had promised to
"puncture" the abnormally high eX-
change rates by agreeing 10 defer the
adjustment of exchange settlements un-
til normal rates returned, and in the
meantime outstanding contracts will be
treated as though exchange were fixed
ct e. 4ha r,nnnA c+nplina GI for two
francs and 81 for four marks. The
bankers agreed, likewise, TO do all in
their power to discourage gold exports.
Further precautions taken yesterday
in protection of the banks from the
results of apprehension caused by the
war embraced the putting into force
of the 60-days' notice rule by the saw
ings banks throughout the state and
the 30-days' rule by the private banks.
The rule is not to be allowed TO work
hardship, and money in moderate
amounts will be paid on demand. There
is no occasion for seeking the protec-
ton of the rule except the necessity
for guarding against panicky with
drawals by persons who are not able
TO separate European conditions from
those here.
The plight of American tourists
abroad also received attention, and yes
terday there was withdrawn from the
Sub-Treasury, with the approval of the
Controller of the Currency, S3,500,000
in gold, of which the greater part is
destined to be sent abroad TO aid
American travellers and others desir-
ing TO return to the United States.
The remainder will be used to pay off
municipal obligations abroad and to
settle some mercantile debit balances.
No safe way has yet been devised for
renting the gold, but bankers went
TO Washington last night TO secure the
aid of the President in this respect.
Besides the gold taken for Europe
there was withdrawn S3,025,000 for
Canada.
There was little change in purely f.
nancial conditions abroad, except in
England. Contrary to general expecta-
ton, the bank act has not yet been sus-
pended, though it is reported that il has
been virtually ignored by the bank itself.
The action of the government in pro-
longing the bank holidays until Thurs
day and in declaring a moratorium
with respect TO foreign engagements
tended to relax some Of the tenseness
of the money situation, though cable
advices yesterday seemed to make il
Z
growing worse. In Wall Street Eng
lands declaration of war within few
hours was thought to be inevitable.
In this country, besides the relief
afforded by the several plans relating
TO money, there was the averting of
the Western railroad strike to put
more cheerful face upon matters.
Through the consent of the railroad
managers 10 arbitrste their differences
with their enginemen and firemen
possibility for trouble of the first mag
nitude has been happily eliminated.
With the withdrawal Of many trans
atlantic steamships from service the
problem of transporting our grain to
Europe has been further complicated
Railroad men are in fear OF more con-
gestion At seaooard terminals, put
there is good reason for believing that
their fears are exaggerated. A number
Of plans are now under consideration
by steamship owners and by Congress
which bid fair TO bring about solu-
ton of the ocean traffic problem when
NAV result in a permanent beneht 10
the country. H.
Stock Exchange will reopen us doors
for trading, and IL is probable tna'
they will remain shut for the re-
mainder of the current week, at leaS',
unless there is some very radical
change for the better in the foreign
nolitical situation. The motives LOT
European liquidstion now are no less
,,rs,o,t than thew were last THURSDAY