New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-04
Clearing House Votes to
Accept Paper Exchange
of 1907 Plan.
NO FEAR OF MONEY ,
STRINGENCY HERE
Action Taken TO Protect GOLD
Reserve-New Issue May
Exceed SI00,000,000.

ne New 1OIk AltaAlhk
citation. for the tenth time IN ITS MS
tory. voted yesterday 20 place itsell on
a certificate basis. The association
siso nassed a resolution making II pos
sible for the member banks to use an
forms OF currency issued under the
authority OF tho government IN pay
mcnt OF their balances at the Clearing
House 1870
than 500 600 900 Of the ccrthcateS mao
bcen issued. Bankers were conhdeht
hat with the S45.O0O00O emergency
currency already available at the SUP
Treasury. there would be no money
stringency in New York that could nov
be successfully met, especially IN view
Of the action by Congress thst ehet-
Cency banknotes may be issued 10 any
amount c,--:.
The avowed object Of the Clearing
House Association in deciding to issue
Clearing House certificates was TO pro
fect the gold reserves of the New YORK
hanks. which have been depleted pc
cause Of the conditions now existing IN
Europe. The statement issued AT the
close Of yesterdays meeting follows
at the meeting Of the New YORK
CLEARING House Association this morn
inq tho situation abroad was discussed
and its bearing on the business oil
the country. Il is the opinion unlver-
SALLY expressed that, in view OF eondl-
tions existing i'm all countries OF Eu-
rope. every means should be adopted 10
protect the gold supply IN the United
States. and II was therefore voted mat
for the prcsent the Clearing House AS
sociation be placed upon cer'lhea'e
basis.
Ready TO Meet Demands.
a second resolution was also adopt
ed making available for the payment
of balances all forms of currency Is
sued under the authority OF the ma
4ioua government This indicates
desire on the part of the bankers TO
use freely the currency issued through
national currency associations, and 70
care 70 the fullest extent for the re-
ouirements Of their correspondents ana
the needs Of inland exchange.
The resolution adopted. which was
presented by William Woodward, presi,
dent of the Hanover National Bank and
acting chairman Of the Clearing House
Committee. was as follows:
"Resolyed. that until further action
all forms Of currency issued under the
AUTHORITY OF the national government
be TtCtlhtU lii pay ii4NA4~ "a
the Clearing House. w.
aPesolved. that the Clearing House
committee. with the president Of the
association. be authorized to receive
from members Of the association bills
receivable and other securities 10 be
aruroved by said committee, who shall
he anti orized TO issue therefor 70 such
denositing members loan certificates
Is<ring interest at s per cent per an,
Nm. and such loan certificates shall
~ be in excess Of Is per cent OF the
Rarket value Of the securities or bills
.oceiyable so deposited, and such GER
t,ficates shall be received and paid IN
settlement Of balances at the Clearing
House"
The meeting at which the above reso-
lutions were adopted was attended by
practically all the siXty-one members
OF the New York Clearing house Assn
citation. Francis l.. HIne, president OF
the First National Bank, presided.
The special committee which Is 10
mass upon the character Of the collat-
ersl offered by the banks for the
Clearing House certificates consists o.
Walter h. Frew, president of the Corn
Exchange Bank; G. V. Thorne, vice
nresidea. Of the National Park Bank;
otto n. Barnard. president of the New
York Trust Company, and NJ. r. Howell,
vice.presideut of the National BANK OF
Commerce. Mr.. Barnard thought that
the amount Of the certificates that
would be issued TO relieve the present
financial crisis would exceed the issue
III 1907. when more than SlOO,OOO,OOO
of the certificates were issued.
Tho greatest amount of certificates
issued 10 any one bank in 1907 was
St7 600 GEO and the smallest amount
was S25O.OOO. The aggregate amount
of the issue was two and one-halt
times as large a. the issue o. 1875
apgregsting S41 10000, which up to
that time was the maximum amount
that had been put out. In 1907 Clear
ING House certificates we're also issued
i'm other cities Of the United States,
and in many cases the certificates were
:. uut into general circulation.
Prior TO 1893 Clearing House certif-
Gates were issued as follows: 1890, No
vcmber l. 10 December %, Si6645,00O;
1884. May 10 to June 6, S24,9l5,000;
1873 the gold panicl, September 22 TO
November 20. SOC. 565. 900, 1864, March
TO April 25, 81. 72S 900; 1868 '64. No
vcmber s to January 8, S1lA7l, 900;
1S6l-'62. September 26 20 February 2
So. 5g5. 600. 1960-'6l. November p "a
February IS, S7,375,OO0.
Owing TO the fact that il has beer
decided to issue Clearing House loar
certificates there will. in all proba'
bility. be no itemized statement. as
usual. on Saturdays Of the condition
Of tho individual members Of Tho
Clearing House. Only the aggregates
of The different items will be shown.