New-York tribune., 1913-08-08
SOUTH WANTS HALF Of
S5O,OOO,OOO DEPOSIT
Clearing Houses Of Thirty.slx
Cities Represented at Me-
AdOo Conference.
BANKERS APPROVE OFFER
Commercial Paper To Be Ac-
cepted After Careful Scru-
tiny for United States
Loans to Move Crops.
frrom Tn. Tribun. Bur.au.l

Washington. Aug. More than one
hundred representatives OF the clearing
houses ~ thlrty-six OF the leading cities
of the South met in conference at the
Treasury Department to-day upon the In
vitation Of Secretary McAdoo TO discuss
plans and arrangements 10 carry out the
Secrctary's offer 20 deposit 100000 with
Western and Southern banks 10 facilitate
the movement OF the crops.
Secretary McAdoo opened the confer
cnce with an address in which he eN-
plaincd tho aims and purposes OF the de-
partmcnt relative To the purposed deposit
OF government funds az this season; the
general character of the security which
he would require the time purposed for
making tho deposit with the banks. and
the time suggested for the withdrawal.
and invited comments and recommends-
tons from the assembled bankers in re-
gard TO the details I'm carrying out the
plan
Mr. McAdoo left the meeting al the
close OF his address. Assistant Secretary
Williams presiding. The chairman OF
each delegation was then called upon 10
explain conditions in his respective sec
tion. indicating the amount OF money he
would like 10 have deposited. The South
crncrs asked for about one-half OF the
total amount 10 be deposited.
The following tentative arrangements
were agreed upon pending the confer
ence with Western representatives to-
morrow and that with Pacific Coast
delegations few days later:
The Secretary purposes 10 accept as
security for deposits government bonds
and high-class state. municipal and other
bonds OF unquestoned standing and also
prime commercial paper. All govern
mcnt bonds Will be accepted at par; all
other bonds must be passed upon by the
Secretary. and when approved Will be
accepted at 70 per cent OF their market
value All commercial paper offered
must be passed upon by committee OF
six I'm each city. composed Of five mem
bers OF the Clearing House Association
and one additional member not MEM
bers Of the clearing house. who shall be-
the special representative OF the depart
ment. In sub-treasury cities the sixth
Assistant Treasurer OF the United States
resident in such city. In cities other
than sub-treasury cities the representa-
tive will be some business man OF high
character and familiar with the local
banks and conditions. to be designated by
the Secretary OF the Treasury.
II is proposed that the commercial paper
on Saattrtt.s haI ba Hgnngit cd with
one OF the leading banks in the clearing
house cities TO be selected by the secre-
tary. The bank thus designated as GUS
todian OF the commercial paper will be
required TO give a bond for Its safekeeping
In some surety company satisfactory TO
the department.
II is proposed that half OF the
amount allotted TO each bank will be de-
posted with that bank I'm the month or
August. the other 50 per cent in Septem-
ber. OF the funds deposited. % per cent
shall be returned by December Is, 25 per
cent by January 10. % per cent by Febru-
airy 10. and the remaining % per cent by
March |. Some of the bankers present
expressed a desire to return the entire
deposit on or before January |, and all
agreed that the whole amount should be
returned not later than March |.
Between the morning conference, which
took place IN the secretary's office. and
the afternoon conference which was held
in the Pan American Union Building the
delegates were received by President VII
son. who told them II was his purpose
to see that all bankers were fairly treat
Cd and that there should be no alliance
between the government and the bankers
of any section.
Senator owen and Representative Glass
delivered addresses at the afternoon con-
ference. explaining the operations and re-
suits expected from the currency bill as
finally approved by the House committee
Secretary McAdoo closed the conference
with a brief address In which. among
other things. he emphasized the deter
mination OF the gobernrient To protect
and maintain its credit and declared that
all Of it's obligations direct and implied
would be fully and faithfully carried out