Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-08-03
STEPSARE TAKEN
T0LESSEN STRAIN
New York Bankers Decide
to Protect American Sup
ply of Gold.
SAVINGS BANKS ENFORCE
THE SIXTY-DAY CLAUSE
Emergency Currency Arrives From
Washington and Stock Exchange
Is to Remain Closed.

Is to Remain Closed.
NEW YORK. August 3.-The clearing
house at meeting today decided to is
| sue clearing house certificates to meet
| the currency situation brought about by
the European war crisis.
Decision to enforce the sixty-day clause
before withdrawal Of deposits was reached
today, by members Of tho New York State
Savings Bank Association. All savings
banks in the state are affected.
| Between 100000 and $4,000 900
! emergency currency arrived here today
from Washington and was loaded on
twenty trucks to be hauled to the sub
! treasury.
Canada Taking Gold.
The outflow of gold from the United
States to Europe. one of the principal
| causes OF the present strained financial
| situation. appeared today to have come
to amend. With the breaking out Of war
| in Europe it was assumed that trans
| atlantic shipments OF gold would be too
I hazardous, and for that reason alone
| the movement would cease This pre-
sumption apparently was borne out today
with the announcement that one of the
principal private banking houses had
Cancelled engagement Of s500.o0O gold
| for export to Europe
| The outflow to Canada, however. con-
| tinued. Another engagement Of 81 900. 600
was made today by the Dominion,
| bringing up the total since the middle
| of last week to about $80OO,OOO. Cana
further on this reserve here. but not to
| a marked extent
| The decision by the clearing house to
| issue certificates was reached after
general discussion of the foreign sttua-
ton and It's bearing on business condi-
| tons here. 1t was unanimous opinion
| that in view of the foreign situation
every means should be adopted to pro-
| tect the country's gold supply. 1t was
voted, therefore. that for the present and
| until further notice the association place
| itself upon a certificate basis.
An additional resolution was adopted
making available In payment OF balances
| all forms of currency issued on author
| ity of the national government.
| This indicates the desire by the bank
| ers to use freely the currency issued to
| the National Currency Association. and
to the fullest extent for the requirements
of their correspondents and the needs of
| interior exchange.
Action Of Savings Banks.
| Members Of the Savings Bank Associa-
| ton met in conference today with Eugene
Lamb Richards. state superintendent Of
| banks, to act on Mr.. Richards sugges-
| ton that the banks enforce the clause re-
| auiring a sixty-day notice from deposit
| tors before withdrawals Of funds would
| be allowed. 1t became known at about
the time the meeting convened that prd-
| vate bankers. to the number of about
| sixty, most Of them from New York, met
1 1aS mic To pnfnrca
| clause.
| There was no disorder during the fore
| noon at any Of the private banks on the
| East Side. the bulk of whose depositors
| are foreigners
The state superintendent of banks said
| later that he believed all the savings
| banks in the state were sound. but that
| the measure was taken as precaution
| against heavy Withdrawals for shipment
1 to Europe by depositors of foreign birth.
| In connection with the decision to en-
| force the sixty-day clause the association
| announced that depositors would be per
| mitted to draw sums not greater than
! $50 from their accounts without giving
notice
| Secretary McAdoo Of the Treasury
Department who came from Washing
| ton last night to attend a conference
with New York bankers, started back
| for the capital at $50 o'clock today.
| John Shelton Williams. controller of
| the currency; Charles S. Hamlin and
| w. P. G. Harding. members of the fed
| eral reserve board. who came from
] Washington with Mr.. McAdoo, remain
/ ed here and were in conference at the
subtreasury during the morning.
! Stock exchange brokers reconciled
themselves today to the probability of
New York. w. C. Van Antwerp. a mem
Der of the board of governors. said that
| there was no thought of reopening the
| exchange in the immediate future. He
|
would remain closed while the Euro
| pean war was on.
Although immediate resumption OF
business is not expected. brokers will
missing employees and cutting of private
| wires.
The special committee Of five brokers
appointed last week met early today and
| 1t was said would continue in session each
day during the time that the exchange
is closed. This committee will attend to
settlement of such points as may require
adjustment. acting as representatives OF
1 the stock exchange firms, and will keep
in constant touch with the European
situation, with view to determining the
probable chances for the resumption of
business.
Boston Also to Issue.
clearing house today voted to authorize
| the issuance OF Clearing nOuSo CeTtlH-
Gates in unlimited numbers.
Short Customs Receipts
| y Prospect for the U. S.
Because of Great War
In consequence Of the interruption of
imports from Europe the United States
| is now facing a serious shortage OF
customs receipts. II the European war is