The sun., 1918-09-07
PLANS TO
CONSERVE CREDIT
Members Must Furnish Daily
Report Of Time or Call
Money Borrowed.
TO SAVE MONEY FOR WAR
Benjamin Strong Urges Neces-
sity of CURLING Speculation
and Aiding Government.
TO SAVE MONEY FOR WAR
Another step toward concerning credit

Another step toward concerning credit
as requested by the Federal reserve
board was taken yesterday when the
governors OF the New York Stock E1-
change passed q resolution asking me
exchange members to furnish . daily
statement Of the amount OF money oor-
rowed on time and on call. Tho resolu-
ton reads: -
"Resolved, That the COMMITTEES on
business conduct be and It hereby Is au-
thorized to require from members OF the
exchange or their firms daily statement
Of the amount or money porroWeo vi
time and on call"
This resolution followed q request
made by BENJAMIN Strong, governor OF
the Federal Reserve Bank OF Now YORK.
who wrote q letter to II. q. 8. Noble,
president of the Stock Exchange, asking
that such action be taken.
The Federal Reserve Bank already
receives reports daily from the banks
on all loans made, but the action OF the
Stock Exchange will enable the former
to obtain more complete reports, mas
much as many of the lenders OF money
on the floor Of the exchange do not make
reports to the Federal Reserve Bank.
stronR,s Appeal to Exchange.
Gov Strong in his letter to Mr.. Noble
asking for the daily reports said:
'.As you are aware. a subcommittee
of the Liberty Loan Committee Of this
district was appointed on September &,
1917, and has undertaken certain duties
in connection with the New York city
money market for the purpose OF secur'
ing the most complete cooperation with
the Government In its financial pro-
gramme by all the financial interests OF
the city.
"The work of the subcommittee has
met with the cordial cooperation OF the
important interests connected with tho
New York money market and there has
been maintained an orderly course OF
affairs in which the supply Of funds has
been ample for the essential needs. We
believe this condition can be continued.
It Is obvious, however. that for the pres
ent there should be devoted to tho Sc
curity market no additional credit be-
yond the funds now SO used. Any ten
dency to expand the collateral loan &C
count should for the general good under
present conditions be checked.
"In order that this important situa
ton may be handled In a way that will
result in the least possible inconveni-
ence, 1t is desirable that we should
have complete daily view OF stock
exchange loans. We recognize tho dis
position of the stock exchange to CO.
operate In every way toward contrfbut-
ing to the orderly conduct of the money
market and. depending upon that patri-
otto disposition, we now ask the COVER
nors Of the stock exchange to collect.
for the confidential use of this commit
tee. daily statements from each member
Of the exchange showing in such detail
as may be agreed upon in conference
the amount Of time and call loans OF
each stock exchange house.
Information to He CONFIDENTIAL.
This information will be for the con-
hdential use Of the committee in whose
hands has been placed tho responsibility
for maintaining an orderly money
market The reports will be asked for
during temporary period At tina
present time II is impossible for us to
| say for Just how long period they
will be needed. We will be obliged II
| you will ask the members OF the ex-
| change to begin these reports at the
earliest date practicable.
Lest any possible Misunderstanding
arise as to the object OF this request. I
am directed by the committee to explain,
! that this is only one of number OF
| measures being undertaken by thu
committee with the object of exercising,
| by mutual understanding among the in
stitutions and firms in this city. such
reasonable and necessary control of the
! employment OF credit as will insure no
| interference with the financial opera
| lions of the Government in conducting
| the war.
| Accurate information as to thu
| amount OF bank credit being employed
for stock exchange purposes will be USE
full in attaining these objects"