The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1913-08-19
TREASURY AID TO CROP MOVE
MEN'T


$25 100000 to $50,000,000 of treasury
funds for depisit in the nation
al banks of the south and west
in order to ease the moving of the
crops is welcomed in general although
some editorial observers question the
need and the purpose of government
banking aid at all. The latter point
out that "the conservative policy fol-
lowed by the banks for months" rath-
er forestalls any emergency against
which Secretary McAdoo's plan pro-
vides, while those most in favor of the
plan argue that with the treasury in
the market as a lender" money may
been, although the per capita average
was never SO high In order to put
his proposal into effect, press reports
tell us, Secretary McAdoo is calling
into conference at Washington the
presidents of the Clearing House as
sociations of fifty-eight cities in three
regional groups: The south, the west,
and the Pacific coast 1t has been
tentatively decided, we read, to deposit
the government funds in these fifty
eight cities which are considered
thoroughly representative of the ag-
ricultural sections" AS collateral.
treasury will accept government
bonds, state and municipal bonds, and
prime, short-time commercial paper"
and the banks will pay per cent in
rotary McAdoo's action is to be COM
mended, says the Indianapolis News
Qnd.). and it gives as reasons:
The treasury's general fund now
amounts to $132,000,000, and this is a
large sum to be kept out of circula-
ton. Fifty million OF it can easily be
spared. In the second place, the gov
eminent does not need the money,
while trade does need it. So it is to be
put to work-which is as it should be.
But the great purpose, of course, is to
break what is believed to be the mono
poly maintained by few of the great
banks. 1t has been said that the banks
were accommodating money against the
demands that would be made when
the crops began to move. But they
seem very slow to respond to those
demands. AS we have seen, the sec
rotary Of the treasury did not act till
he had been urged to do SO by those
who needed ready money to move the
crops-money which they had been
unable to get in the ordinary course
Of business 4 I.AE EYE"
In the view of the Birmingham Age
Herald (Dem.), Secretary McAdoo's
project will give stability to an era
Of prosperity" while incidentally it
reminds us that in carrying it into
effect "for the first time in history the
government will accept prime mer-
camille paper as security for deposits"
This, according to the Atlanta Journal
(Dem.), is a noteworthy sign of the
liberality and progressive spirit
shown by the administration toward
business and agricultural needs. This
sentiment is indirectly confirmed BY
the New York Press (Prog.), which
says:
Countries with modern banking
systems accept commercial paper of
the best class as the basis on which
currency issues are secured. Com
mercial paper is the ideal security for
such purposes. 1t is flexible; it has
the very quality of elasticity, of res
ponsiveness to current conditions and
demands, that is needed in a medium
employed to give the currency elasti-
city,"
This feature of the secretary of the
treasurys proposal, thinks. the Phila-
delphia Inquirer Qnd. Dem.), is "prac-
tically to rediscount the paper taken
by the banks" but the governments
security is ample, it advises us, as
the banks become responsible to the
government for the deposits they re-
ceive, and the advances will only be
Go per cent of the face of the paper"
Another new departure" according
to the Chicago Journal Qnd.), is the
fact that the government is to receive
interest on its money, and it goes on
to say that:
when the currency system of the
country is established on sane and
just basis, there may be no need for
governmental help in moving the
crops. Until that time arrives, the
action of Secretary McAdoo will COM
mend itself to all fair-minded men,
If we did have "a proper banking
system" the New York Journal of
Commerce remarks in pointed dis
agreement with the foregoing opin-
tny, L;