The San Francisco call., 1913-08-01
SENATOR THLMAN
DEMANDS PASSAGE
OF CURRENCY LAW
Says if Relief Is Not Ex-
tended Money Pirates
Will Cause South to
Lose $10O, 100000

WASHINGTON, July 21.-Senator Till
man in public statement tonight de-
clared that unless congress provided re-
lief within so days southern cotton
planters would ''be robbed of 500. .000,-
00e or more" on account or the inability
of southern bankers to get money from
New York pirates
He urged that some kind of resolu-
ton be put through Immediately to af-
ford temporary relief. and that the
house banking and currency committee
stop squabbIing'' and allow permanent
currency legislation to be enacted
The senator expressed the hope that
the committee would work out a prac-
tical scheme to inspire confidence in
the business people of the country so
that they would lend money to the
banks at per cent on satisfactory col
lateral
EMERGENCY EXISTS
Secretary McAdoo ns well informed
as to the business conditions in the
United States and ! am willing to
leave it to his good Judgment as to
what collateral shall be required" said
the senator.
Right now there is an emergency,
and unless congress acts promptly
within the next so days. the southern
cotton planters will be robbed of $780,
000,0 ,000 or more by the fall in price of
their principal crop, due to the inahil-
ity on the part of the southern banks
to get money from New York at any
price or ON any collateral The New
Workers have our people by the throat
as they have had them all these years
since the war, and only congress can
give relief
|.ALDRICJ 4CT NO RELIEF
"The Aldrieh- -vreeland act. which
authorized the printing of the $780,
600, 600 now lying in the treasury,
grants no relief at all to our people
because of the conditions imposed. Re-
lief can be extended only through as
sociations of banks in regional groups.
IF something is not done, I see no
way of saving the people of the south
from great loss, unless the banks take
the law into their own hands, as they
did in 1907 and form clearing house
associations and issue certificates as
they had to do then. I. for one, am
tired of seeing our people held up and
robbed by the New York pirates who
appear willing TO scuttle the ship
rather than lose their grip on the far
mers of the country"
BONDS WILL BE ACCEPTED
In a statement tonight the secre-
ment that government bonds would be
accepted at par as security for the
new deposits and that the additional
money would be placed only with
banks which have taken out at least
40 per cent of their authorized cir
culation.
The United states 2 per cent bonds.
serving as security for most of the ma
tfonal bank circulation, have been de-
pressed recently to new low market
records dropping TO 9SA in the last
few days.
The secretary's Willingness to ac-
cept these bonds at par as security for
the s25s0oe,0oe to $5ooeo,ooo of prom
ised deposits and the inducement to
the national banks to increase their
circulation up to the 40 per cent limit
is expected to help in restoring the
parity Of the depressed Is by Great
ing new market for them.
COMMERCIAL PAPER GOOD
For the first time in history, the gov
ernment viii accept prime commercial
paper as security for deposits. This
privilege will be granted. announced
the secretary in order TO make these
special deposits available to 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 cities in.
which the banks Offering such paper
may be located All commercial paper
and bonds must be passed upon finally
and accepted by the secretary.
Approved commercial paper will be
accepted q s security for the deposits at
So per cent of its face value and high
class state, municipal and other bonds,
exclusive of government bonds, at 10
per cent of their market value.
MONEY FOR HARVESTING
The additional deposits will be placed
with the national banks in the two or
three principal cities In each of the
states where harvesting now is in prog
ress and where fhe demand for money
for moving the crops most CONVENIENTLY
can be met.
The banks will be required to return
the money to the public treasury when
the crops have been moved. The sug
gestion is. Mr.. McAdoo said that Is
per cent be repaid I'm December, 80 per
cent in January. 80 per cent in Febru-
AIRY and % per cent In March next.
MOVEMENT IN PROGRESS
Steps now are being taken TO carry
out the plan added the secretary, so
that the funds may be availab bic
promptly for the movement of the
crops.
The names OF the banks to receive
the deposits and other details of the