Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1906-12-12
TO AID
IN BUYING COTTON
South's Great Staple Is Absorb.
ing All the Currency.
so SAYS SECRETARY SHAW
Secretary Says New England and
Southern Manufacturers Have Ex-
hausted Capacity of Banks in Buy
Ing Cotton-Relief Needed.

hausted Capacity of Banks in Buy
Ing Cotton-Relef Needed.
Washington, Dec. 11.-Secretary
Shaw had an interview Monday with
the bankers committee, now in ses-
sion in the city, and later in the day
made the following announcements:
Il have received in the last ten days
an unusually large number of letters
from business men representing all
sections of the country complaining OF
the extraordinary high rates of inter
est. | 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. have conferred
with the committee of the Bankers
Association, now in Session in the
city. These gentlemen represent
Chicago, ST. Louis, New Orleans, At
lanta, P.ittsburg, Indianapolis, Ees-
Moines and other cities.
From the best information l can
get l think the following describes
the situation fairly well:
Our blessings are the real cause of
the actual stringency in money recog-
nfzed everywhere. An unusually large
crop and uneaxmpled industrial activ-
1ty have created an unprecedented
demand for money.
The world is everywhere prosper
Gus and money is in great demand
throughout Europe as well as in the
United States. We never had such
volume of credits-and are based
on an uneQualed volume of assets
The manufacturers Of cOttJa az buy
ing that staple by the train load TIE
cotton planters, unlike the western
farmer, demand actual cash, and he
carries it home in his pocket. The
western farmer is paid in checks
which he deposits in the bank to his
credit and therefore does not absorb
actual money, as does the cotton
planter This money should be return
ed to banks when the planter settles
with his merchant soon after the first
of January, but between now ara then
the cotton consuming country, as well
as the cotton producing country, is
short of money.
New England has sent millions to
the south and the manufacturers of
cotton throughout the south have ex-
hausted the capacity Of local banks and
are trying to borrow elsewhere. There
is no occasion for alarm but I be-
lieye there is occasion for relief This
have decided to grant in the follow
ing manner.
Il will deposit $40, 600, 600 in exist
ing repositories in the cities designat
ed below, to be secured by bonds ac-
ceptable for savings bank investments
under the laws of New York and Mas
sachusetts, taken at 80 per cent of
their value; these deposits to be re-
turned, one-half on the goth of Jan
uary and the remainder on the 1st of
February.
81 will also buy $40 900 900 of the
bonds of 1907 at the following prices:
Registered bonds ex-interest at 101
and coupon bonds at 102.
In the event that the bonds pur-
chased are now held as securities for
government deposits, security of the
character above indicated will be ac-
cepted in lieu thereof Not more
than 81 900 900 worth, however, will
be purchased from any single institu-
tion under these conditions.
New York and New Orleans viii
get 81, 500, 900 each; Boston, Phila-
delphia, Baltimore, Chicago and st.
Louis, 81 900 600 each; Cincinnati,
louisville, Atlanta and Memphis,
$500, 900 each.
u. S. Government to use Balloon.
New York, Dec. IA new bal