The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1913-08-06
GOVERNMENT TO AID
IN CROP MOVEMENT
Treasurer McAdoo Orders Twenty five
to Fifty Millicns OF Dollars Deposit
cd in Western and Southern Banks
to Aid In Moving Crops.

4
OF the treasury department upon the
collection OF Information for use in
the distribution of the promised TWEEN,
ty-tive to llty million dollars govern
ment funds L agricultural regions
the south and west The relative
needs OF the Various sections where
harrests are under way will be can
Nassed. Treasury officials are con
iident today th;; the plan will be eff
fectire in relieiing prospective tight
ness OF money characteristic of the
crop moving season.
twenty-five o fifty million dollars
OF government funds will be deposit
ed in the national banks of the south
and west at one by Secretary McAdoo
TO facilitate tie movement of crops.
Federal. state and municipal bonds
and prime commercial paper will be
accepted as security for the money
upon which the banks will pay two
per cent interest.
The motive Of Secretary McAdoo in
establishing this new policy is TO
anticipate the money stringency in
The late summer and fall, which in
variably accompanies the marketing
| and movement of crops, especially
wlIeh the crops are usually large
as the harves' now beginning fore
| casts. He intends to take time by
the forelock AID prevent or minimize
the usual tighness of money. In a
statement Thursday night the secre-
tary made the significant answer that
government bonds would be accepted
at par as security for the new depos-
its and that the additional money
would be placed only with banks
which have taken out at least forty
per cent OF their authorized circula-
ton.
United States two per cent bond
| serving as security for most of the
national bank circulation have been
depressed recently to new low market
records, dropping to 80 81 during the
past few days The secretary's
willingness to accept these bonds at
par as security for the twenty five to
fifty millions OF promised deposits
and the iduccmcnt to the national
banks to increase their circulation up
to the forty per cent limit is expected
to help in restoring the parity Of the
| depressed 2's, by creating new mar
/ ket for them.
... To Make Deposits Available.
For the first time in history the
/ government will accept prime com
mercal paper Is security for depos-
| its This privilege will be granted.
announced the secretary, in order to
make these special deposits available
to the banks on securities readily
within their reach
The commercial paper submitted"
added Mr.. McAdoo, Shall first be
passed upon and approved by the
clearing house committees of the cit
| les in which the banks Offering such
paper may be located All CONNER
cial paper and bonds must finally be
passed upon and accepted by the sec
retary"
Approved commercial paper will
be accepted as security for the de-
posits at Go per cent of its face value
and high class state municipal and
other bonds, exclusive of government
bonds, at 70 per cent of their market
value.
The additional deposits will be
placed with the national banks i'm the
two or three principal cities in each
OF the states where harvesting now
is in progress and where the demands
for money for moving the crops most
conveniently can be met The sec
rotary said il would not be practica-
bic to scatter the deposits among the
smaller cities, especially in view of
the character of securities necessary.
The banks will be repiscd to re-
turn the money to the public treasury
when the crops have been moved
The present suggestion MIR. McAdoo
said is that II per cent be repaid in
December, 80 per cent in January
80 per cent in February and o. per
cent in March next
To he Promptly Available.
steps arc now being taken to car
ry out the plan" adlcd the secre, ry,
so that the funds may be promptly
available for the movement of crops. "