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Show F11K WOULD AMEND THEBANK ACT Permission Is Sought to Count Natioral Bank Notes in Reserves APPEAL TO BOARD Object Is to Enable Bank erstoShip Gold from This Country to Europe NEW YORK Aug 1 For the settle merit of the country s International obll gations rad cal steps were proposed today Ijy New York bankers One suggestion . which was lad Immed ately before the federal reserve board was auspens on of the provls ons of the aw regard ng- re serve requirements for nat onal banks An alternative plan was enactment of legis atlon by congress permitting banks to count natlona bank notes In their re serves In e ther case the result wou d be to lessen the amount of .o d the banks must ho d and enab e them to Hp go a from the country Frank A Vanderl p pres dent of the , Nat onal C ty bank te ephoned to Wash 1 lngton to Charles S Ham n governor of the federal reserve board present ng tne I suggestion that the reserve requ remen s be suspended If the board thought It ti b e and as ed t it were poss b e to take such act on at the present t me before the mach nery created under the new aw 1 ad been put Into operat on Mr Ham n said accord ng to Mr Vander p that the matter wpu d be brought before the board Meeting of Financiers These matters were broug t up at a meet ng of a spe a comm ttee of the New York chamber of commerce attend ed by M Vender p J P Mo gan Jacob II Sch ff E P Oute bridge Seth Low and othe s When news of the p ans d Is ussed by th s committee reached the inane i word fear was e pressed that the esu t of any s ch action would be to s a t once mo e the dra n on the coun try s go d supp wh ch was a lead ng I ruir of the recent unsett ement of the oun y s finances The proponents or the p an home e f e t here was no dan ge of sue a esu t One nterpretat on p aced upon the p opo a to no ude bank o es n e a eser es was that t would n ea e s spens on of spec e payment Mr Vande p a acter zed this as en re y un ue Two Millions Due At t e meet ng toda t was said that abo t i 000 000 was n med ate y due Lu opean c ed to s Members of the com t p essed the op n on that where as cen y ad been n pos ib e to sett fore n ob at ons n go d owing to t te rupt on of t ansa an c sa 1 ; n0s and other cond t ons brought on by t e wa go d payn en s we e not possl b e a east to Eng sh cred ors by rea son of t e ar angeme -whereby the Ean of Bng and go d s to be he d in trust by the Canad an n n s er of finance at Ottawa thus obv a n sh pments across the At ant c The e was no further reason t was I e d w y obi ga ons not co e ed by the moratorum in Bng and shou d not be met Son e of the bankers took the pos t on t at to refuse to make these pay ments god wou d be a reflect on o the count ys In eg ty and woud dam age ts cred t abroad Would Amend Bank Act M "Vander p was asked to d aw an amendment to the bank act to be sub n tted to cong ess enab ng t e banks to count bank no es as pa t of the re se ves Af er h s p oposa had been made t was suggested a s c a on m t be unnecessa s nee he fede a rese e act g ves t e boa d p we to sus pend the rese va equ emeu s fo th ty daj and onger if deemed ad sab e It was then de ded to ay. the woe mat ter befo e h boa d and M Vande p i was des gnated to act fo the comm ttee Mr Vander p sa d hat f ban no es s ou d e used as pa t of the rese es It vas p obab e that on y a sn a per contage of t e e erves ay 10 per cent wou d be us made up Theon n on was exp essed n the finan t c a d s ct on g t that any steps look ng tow a d t e e po at on of ons dera b e sums of o d wo mee v. st ong ppos o ee Bakeswlo favo ed t e ac on ad owe e t a s o d he pa be adop ed the e vo d be n he r op n oh no hea y e por at on of go d since ac urn at ng E s ed ts wou d be u zed fo pa n en of An e can gan and he e po s O e de e opments of the da nd ca ed tead mp o en e nflnanca af fa rs o e c anire autho es made ft ru n perm t ng the pu chase o sa a of sec t es fo ca but ta ng ma g nal a a on The nonej n arket as s du B ds of b o 8 pe ent e e n ade fo t me oa s w t ew ore ing Tee vas st no ea n arke fo Lo do o on ne ta e c a rae |
