The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1907-08-29
CASH TO MOVE CROPS.
Secretary Of Treasury corteiyou
Adopts New Plan to Foresta!l
Possible Panic in Money.

Secretary OF the Treasury Cortelyou
announced Friday a new plan OF de-
posting government funds in New
York, Boston and other cities, to az
ford relief to the money market in
the approaching crop movement Pc
riod.
Commencing next week, he vii!
place each week at such points in
the country as he shall designate, gov
ernment funds to such an amount as
he deems sufficient to prevent an acute
monetary s.ringency and possible panic
when the demand fol money is great
est at the height OF the crop-moving
period.
The new plan OF the secretary for
monetary relief, he believes, will
prove more eficacious than the old
method of waiting until the country
was severely shaken financially and
then coming to the relief at the last
moment by placing large deposits in
New York banks. Secretary Cortel-
you did not state how much money
he will deposit each week.
The plan was made known in New
York Friday in the following official
statement to the Associated Press:
Secretary Cortelyou announced
that beginning with next week the
treasury department will make each
week for a period of not less than
five weeks, deposits in national banks
at New York, Boston and other points,
the security required to be approved
on state, municipal and railroad bonds
acceptable under the existing require
ments of the department with the un.
derstanding that, if called for, such
deposits shall be returned after JAN
uary l in installments to be fixed by
the secretary Of the treasury.
"This action is taken to mSet the
commercial and industrial needs Of
the country at this season, and is be-
lieyed to be preferable to waiting until
a time of acute stringency when the
only alternative would be a large gen.
eral deposit. The latter policy the Sec
retary desires to supplant by one
which shall have as its ultimate obj:ct
the adjustment of the operations CT
the treasury department, as rapidly as
may be practicable under existing law,
in such manner as shall preclude their
being any sense d disturbing factor
in the business world.
Under the new plan, the secretary
will place the government funds in
amounts large enough to meet the
situation. Fer this purpose, he may
deposit all custom funds which he is
permitted to under the Aldrich act,
and if these are not sufficient he will
augment them from the treasury BAL
ancce which increases each wsek after
The usual July deficit.
Secretary Cortelyou in placing the
government funds will depend much
upon the bureau urgently established
In the treasury department to inform
him where stringency is being felt
most. He believes that by not announc-
ing in advance the amounts to be
deposited be will prevent spectators
from taking advantage of the situa-
ton and obtaining money which he
believes should go inco other chan
nels.-
In nrevious years the sudden out
pouring of money from the national
treasury, when a crop moving strin.
gency was absorbing all available
funds, made a good export movement
possible by the very violence of the
reaction. The financial situation has
occupied Secretary eortelyou's atten-
ton for some time, and he is doing
what he can to bring relief. Notwith-
standing heavy demands for the $780,
100000 Panama bonds which are still
unused, the secretary declines to place
them On sale as the government does
not need money and their purchase
by the banks would tie up additlonai
millions"