Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-08
Treasury Officials Confer Over
the Placing of Government
Deposits.
TO ASSIST IN MOVING
AND MARKETING CROPS
Exact Amount Will Be Determined
After Views of Financiers Have
Been Analysed.

vt conference today between Treas
ury officials and bankers of the central
west regarding the distribution of gov
eminent deposits to assist in moving the
crops. Assistant Secretary John SHELTON
Williams declared the Treasury was pre-
pared TO deposit 500 900. if necessary.
The original plan called for S5900o,ooV.
The exact amount of the government de-
posits will be determined after the views
OF the bankers have been analyzed.
Bankers of Chicago and Indianapo it
was said. declared they were not pre-
pared to say whether the deposits would
be needed By them. but that they would
be glad to receive a portion of the fund.
Generally the governments proposition to
put the money out was welcomed. Den
YER, Col. requested s2o.O0o.OG0.
Mr. Williams informed the bankers that
on deposits to he secured by state and
other bonds, exclusive of government
bonds. and by commercial paper the
Treasury Department probably would in
sist upon an additional security OF 10
per cent in United States bonds.
Mr.. Williams indicated to the bankers
that the government would place a
broad construction on commercial paper
to be accepted security for the de-
posits. 1t will include not only regular
customers loans. but paper based upon
all stable commercial and agricultural
operations.
Fort Wayne. Ind. asked for 100000 OF
the deposit and other western cities APP
piled for ''as much as we can get.
Principal Question Discussed.
Fifty bankers from the large cities
OF the central west were at today's
conference.
With a tentative decision reached to
place S25, 100000 in the south to as
sist in moving and marketing cotton
and other crops, the principal question
discussed today was the division of the
remainder between the middle and
far west. The bankers generally, it
was stated. We're enthusiastic over the
prospect of government assistance.
Secretary McAdoo originally announc-
ed that the deposits would range be-
tween $25,000.0U0 and S50,000000, but
Ii now seems practically certain that
he will put out the entire $500 900 be-
cause OF the unanimity of opinion
among the bankers in the crop-moving
sections that the funds would material
ly aid in averting or at least diminish
ing the stringency characteristic of
the fall.
Secretary McAdoo made it clear TO the
bankers today that while he felt impeiled
TO deposit the money in the large centers
in the agricultural belts, he would insist
that the big banks receiving the funds
should pass them along to the smaller
or country banks at reasonable rates OF
interest. The Treasury Department Is
powerless TO name the rate of interest,
but the condition of reasonableness Will
be imposed.
Represented at Conference.
The following cities were represented
by the delegates named:
Denver, Col, j. c. MITCHELL; Chicago.
c. ii. Reynolds, W. T. Fenton; Fort
Wayne. Ind. T. Wentz, c. H. Worden.
+. II. Poole; Evansville, Ind, Henry
Refs: Indianapolis, S. A. Fletcher, j.
vi. Mcintosh; Fort Dodge, Iowa, j. j.
O'Connell: Des Moines, Iowa. A. Rey-
nolds, Homer A. Miller; Sioux City,
Iowa. John Ntzhugh,; Kansas City.
Kans.. and Kansas City, Mo, p w.
Goebel; Detroit. r. p. JOY; Mime
apol:s. F. A. Chamberlain, A. A. Crane.
E. w. Decker; St. Paul. w. B. Geery;
Omaha. j. DEF. Richards. +. H. Davis;
South Omaha, Neb.. j. c. French;
SCOTS Bluff, Neb S. X. Warrick; Gin
cinnati. Charles A. Hinsch; Cleveland,
J. j. Sullivan. T. Fl. Wilson; Oklahoma
City. Okla. William Nee: Pensacol>,
Fla, j. S. Reese: Fort Worth, Tex, Ben
Tex. v. II. Stewart
~ the request of the bankers. Chair
men Owen and Glass of the Senate and
House banking and currency commit
tees. respectively. addressed the confer
ence on currency legislation. The bank
erS intend to avail themselves of their
presence at the seat of government to
acquire frst-hand information of the
proposed banking and currency reform
and TO give their views to the chairmen
of the two congressional committees.
This same course was pursued by the
southern bankers yesterday.
Secretary McAdoo said that all their
suggestions would be carefully studied.
He announced his decision as to specific
requirements for security.
Government bonds will be accepted at
par. state. municipal and other high-clas
bonds at 20 per cent of their market
value. and commercial paper at 60 per
cent of its face value.
The proportion of commercial paper
which will be accepted will be decided