The Birmingham age-herald., 1914-08-02
EMERGENCY MONEY PROBABLY WILL 60
 INTO CIRCULATION
Financial Interests of the Country Making Plans to Avert Possible Cur
 rency Stringency

New York, August i.-Extraordinary action was taken by the leading financial interests of America today to avert finan- cial unsettlement in this country as Il result of the European war. Relief meas ures are under way which bankers believe will preserve the public confidence. This is the situation:
 Emergency currency probably will be put into circulation next week If oe- casion requires this currency. Issuance of which is provided for by the Aldrich- Vreeland act passed after the 1907 panic. may be supplemented here and elsewhere by clearing house certificates such as were used in 1907.
 Representatives of New York foreign exchange houses left tonight for Wash President Wilson. They planned to sug- gest the unprecedented measure of ad- vancing s1oo,oOo.Ooo credit to England.
 Active Day for Bankers
 1t was day of strenuous activity not nnmixed with anxiety for New York bankers. The European crisis demoralzed the financial markets of the world week ago and the intrlcacies of modern finance are such that upon America. isolated from burden. Idquida ton of American stocks by European holders not only upset this stock market so completely that it was compelled to suspend business, but raised another serious problem. that of paying Europe for the stocks sold here.
 1t is estimated by reports of foreign stock exchange houses that from sl00,- 0nD OOO x15n nf mi stocks were thrown on this market for whatever they would bring. by panic stricken European holders. Canada also unloaded stocks here heavily.
 Next week the bills drawn against these sales of stock will reach New York. Part of the $45,000,0O0 gold shipped abroad on vessels now on high seas Is in danger Of capture. Even these shipments leave a huge total of foreign credits to be sats fled. Todays statement of the New York banks showed the effect of the raid upon the American supply of gold. There was decrease in cash holdings of more than $o3.oO0,0oo due principally to the loss of gold. and in place of the surplus reserves of s26ooo,ooo reported last Saturday there was today deficit of A1ooo,0oo.
 To Safeguard Situation
 To meet these foreign claims without serious encroachment upon available
 
 CTS were forced to take decisive action Uncertainty as to what developments might result in the world of finance from the upheava in Europe and doubt as 10 the effect upon American public sentiment made it imperative, in the opinion of bankers that added precautions be taken te safeguard the situation.
 Early today there was a conference of some of the leading New York bankers Later there was meeting of the Ma tiona Currency Association of the City of New York. an organization provided by the Adrich-Vreeland law. At this meeting all arrangements were complet- ed for issuance of emergency currency next week.
 Although the possibility of issuance of emergency currency has been discussed quietly in Wall street, the New York as- socla tion's action gave the first authori- tative Endorsement to these reports To give assurance that the steps taken would amply meet the needs of the situation. Frank A. Vanderlip, president of the National City bank. tonight issued a statement, which said:
 "The action of the New York Currency association in getting all the machinery ready for the issue, of additional bank notes. should give assurance that there will be no lack of an ample circulating medium. It is now possible to create a considerable amount of additional cur
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