The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-03-09
BILLION DOLLARS
IN NOTES READY
At CALL OF U. S.

Tn the event of an emergency, re-
ouirinr an expansion In the natlon
currency, the Federal Reserve Banks
could issue notes to the amount OF
81. OO0, 000, 900. -. go NV
Attention is called to this fact by
tho Eaderal Reserve Board in WASH
fngton in its March bulletin, w1lcn
points out the preparedness meas
ues taken by the board in the way Oh
accommodating large supply OF notes
in Washington and in the vauits ol
the twelve Federal reserve aseh's'
ready to be issued at moment no
I, tice. In this connection, reference Is
made to the delays experienced NY
banks at the outbreak OF the wal
when there was sudden rush on Ap-
plications for notes issued under the
Aldrich-yreeland Emergency Curren-
cv. act. = When the Federal Reserve
Hoard was first organized, tt directed
the printing Of $500, 100000 of notes;
and later it raised the amount to $7oo,-
100000 Very recently it increased the
total to $500, 100000, in. addition to the
notes outstanding, and the Bureau on
Engraving and Printing is working at
fun speed upon the new currency, 80
as to keep we'll abreast OF any conce1V-
able demand that may be made.
In placing the note-issuing capacity
of the Federal Reserve Banks at $l'-
Oo0. O00, 900, the Federal Reserve Board
makes the following calculation: Inc
twelve banks hold reserve money TO
the extent Of $4,000, goo. Their neces-
sary reserve holdings against deposits
are, roughly speaking, 1887 ,00O,O0
They have thus $275, 200, 900 of free gold
which can be used as a 40 per cent.
reserve against notes, thereby per-
hitting an issue of 1851, SOC, 900. In ad-
dition to this they hold today over
S112,0 900 OF free commercial paper
available as collateral for the Issuance
of Federal Reserve notes over and
aibove the paper now pledged to pro-
tect outstanding notes BY Withdraw
ing from Federal Reserve agents an
equal amount of the gold held by the
latter and putting this paper in the
place of it, they would, after deduct
ing the reserves required by law to
he held against notes already out
standing, he able to issue fully $168,
900. 900 more Inasmuch as there would
still remain q sum in gold amounting
to nearly $191 ,00N, 900 in the hands OF
Federal Reserve agents, a consider
able portion Of which could be re-
leased and used under favorable con-
.litions as a basis for notes, there may
safely be added another $3.50, 900 900 tc
the sum Of $6s7, 500 900 and s16s, 000, 00t
already enumerated, thus raising the
potential issue power Of the banks tc
fully one thousand million dollars
Figures such as these, says the
board, have little meaning in and OF
themselves, adding: cit may he noted
by way of comparison that during the
year 1914, when he modified Aldrich-
Vreeland law was called into active
Z operation, the issue of notes to the
banks was less than $400, 100000 fol
the country as whole, while addi-
tional issues Of Clearance House GER
tif1cates were less than $3.50, 000, 900. In
round numbers we may say that notes
available today are double in amount
the total emergency issues called fol
at any single time in the past
At the present time there are ap-
proxfmately $300, 00o, 900 Of Federal Re-
serve notes in circulation.