The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1906-12-13
TO AID IN BUYING COTTON
Secretary of the Treasury Shaw Turns1
Loose Twenty Millions Of Cash in J.
south-Depositaries Selected. Z

o0lltt-SSPSoIAoisSS sSS S~'~Ss~~
Secretary Of the Treasury Shaw
had an interview with the bankers
committee, in session at Washington,
Monday, and later in the day made
the following announcement:
Il have received in the last ten
days an unusually large number ot
letters from business men represent
ing all sections of the country conl-s
planning Of the extraordinary hign
rates CT interest. / have conferred
during the. same period, by letter or
personally, with large number OF,
bankers scattered through the south
and middle west, as well. as in the
east. l have conferred with the coE-
mittee of the American Bankers AS
ISOLATION, now in session In the city,.
these gentlemen represent Chicago.
St. Louis, New Orleans, Atlanta, Pitts
burg, indianapolis, Des Moines and
other cities.
From the best information can
get I think the following describes
the situation fairly well:
"Our blessings are the real cause
of the actual stringency in money
recognized everywhere. An unusually
large crop and unexampled industriaf
activity have created an unprecedert-
ed demand for money.
"The wcrld is everywhere psases
porous and money is in great demand
throughout Europe as well as In the
United states. We never had suchs
volume Of cIedits-and they are
based on an unequaled volume OF as
sets. The manufacturers of cotton are
buying that staple by the train load
The cotton planters, unlike the Wesl-s
ern farmer, demand actual cash. and
he carries it home in his pocket. Phe
western farmer is paid in checks
which he deposits in the bank Ios
his credit and therefore does not ao-s
serb actual money, as does the COT
ton planter. This money should be-
returned to the banks when the plans
ter settles with his merchant soon AZ
ter the 1st of January, but between
now and then the cotton consuming
country, as well as the cotton pro-
ducing country, is short of mones
sNew England has sent mihf0nR
to the south, and. the manufattnFers
CT cotton throughout the south hages
exhausted the capacity 5of lccal banks
and are trying to borrow elsewheEes
There is no occasion for alarm but
believe there is occasion for EeS
lief. This l have decided to Grant
in the following manner;
Il will deposit $4,000. .oc0 in exist
ing depositalies II the cities desigaatS
ed below. to be secured by bonds ae-E
ceptable for savings bank inTest
ments under the laws OF New Y0rk;
and Massachusetts, taken at 80 per
cent of their value; these deposits tos
be returned, one-half on the 2dth Of
January and the remainder on tho
1st of February.
It will also buy $4,000, ,0eo Of tie.
bonds Of 1907 at the following prices
Registered bends ex.interest at 1yI
and coupon bonds at 5102.
In the event that the bonds pr
chased are now held as securities for
government deposits. security Of tie.
character above indicated will be acs
cepted in lieu thereof. Not mere than
81 100000 worth, however. viii sDe ptirz
chased from any single instItution
under these conditions. s. ss1gs'
"The deposits will he made as fol-
lows:
"New York and New Orleans
s1,5oe, 900 each. sss 81
Boston, Philadelphia, BaltinIors
Chicago and st. Louis. $1,000, ,eoe
each. ssssss
Cincinnati, Louisville. Atlanta ard.