The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1913-08-06
for FARMERS GOOD
FIFTY MILLIONS TO Be PUT In
SOUTH and west
AID In MOVING CROPS
Secretary McAdoo Will Put Enor-
nous Sum at Disposal Of Banks Of
Farming Districts-To Meet Heavy
Demand for Currency in the Fall
When Crops Are Harvested.

| When crops are harvested.
From s25,eO0,O0O to $4,000, 900
Of government funds will be deposit
ed in the national banks Of the South
and West at once by Secretary Nc
Adoo to facilitate the 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 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
when the crops are unusually large,
as the harvest now beginning fore
casts. He intends to take time by the
forelock and prevent or minimize the
usual tightness Of money.
In a statement Thursday the secre-
tary made the significant answer that
government bonds would be accepted
as par as security for the new de-
, posits and that the additional money
would be placed only with banks
which hay taken at least 40 per
cent. of their authorized circulation.
United States 2 per cent. bonds,
serving as security for most Of the
national bank circulation, have been
depressed recently to ne wlow mar
ket records, dropping to 95 3-4 dur
ing the past few days. The secre-
tary's willingness to accept these
bonds at par as security for the $685.
00O, 900 to s5O,o0O,OO0 of promised
deposits and the inducement to the
national banks to increase their cir
culation up to the 40 per cent. limit
is expected to help in restoring the
parity Of the depressed 2's by Great
ing a new market for them.
For the first time in. history the
government will accept prime COM
mercial paper as security for depos-
it's. This privilege will be granted,
announced the secretary, in order to
make these special deposits already
within their reach.
"The commercial paper submit
ted" 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 COM
mercial paper and bonds must fin
ally be passed upon and accer'ed by
the secretary"
Approved commercial paper will
be accepted as security for the depos-
its at 65 per cent of its face value
and high class State, municipal and
other bonds, exclusive of government
bonds, at Is per cent. Of their mar
ket value.
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 progress and where the demand
for money for moving the crops most
conveniently can be met. The secre-
tary said it would not be practicable
to scatter the deposits among the
smaller cities, especially in view OF
the character of securities necessary.
The banks will be required to re-
turn the money to the public treas
ury when the crops have been moved.
The present suggestion is, Mr.. Nc
Adoo said, that Is per cent be repaid
in December, 80 per cent in January,
80 per cent. in February, and rs per
cent. in March next.
"Steps are now being taken to car
~ out the plan," added the secretary,
$50 that tn. funds may be promptly
available for the movement Of crops" =
Names of banks to receive the depos'
it's and other details Of the arrange
ment will be announced later.
This new policy is the antithesis OF
that adopted by Former Secretary
Macveagh, who two years ago dechn'
ed to make government deposits tc
relieve the tight money market on
the ground that the moderate surplus
of federal funds at that time should
be held as a reserve to be utilized a.
some possibly critical stage.
With the net balance IN the gen
eral fund amount to nearly $751;
600, 900, Secretary McAdoo has taken
the stand that the government
should anticipate the situation o5
by placing deposits where and at the
time they are needed.
If the full s5O,000,O0o is deposited
this step will temporarily almos'
double the governments deposits
with the banks which now hold $685.
100000 Of federal funds.
Just as Secretary McAdoo was an
nouncing his plan, Senator Tlllmar
Of South Carolina was issuing a state
ment declaring that unless congress
acted quickly to provide an emergen,
J cy currency, the cotton planters o.
| =, :