The Union times. [volume] (Union, S.C.) 1894-1918, 1913-08-08
HOW THE FARMER
GETS THE MONEY
PLAN TO DEPOSIT $4,000, 900 IN
SOUTHERN BANKS.

ooO DANhS.
Senator Smith is Informed by Treas
ury officials as to System PropOs-
ed for the Distribution of Funds
to Aid in Movement of Southern
Crops-NatiOnal Banks Obtaining
Money from Government will in
Turn Lend it to Local Banks on
Acceptable Security.
WASHINGTON, August 2.-The
announcement that the Government
would deposit S5O,OO0,OOO with the
banks in the South for the purpose of
moving the cotton crop was received
with the liveliest satisfaction by
Southern Senators and Representa-
tives in Washington. 1t was upon
the representation of Senator E. d.
Smith, and others, that the Govern
ment decided to take this step. 1t
means that Southern banks and the
Southern business men will not be
caught by money shortage this fall
and winter as was the cass during
the latter part of 1907,
Senator Smith went to the treas
ury department today and saw As.
sistant Secretary John skelteH VII
liams, himself Southern man, to
find out just how the money would
be distributed. He wanted to find
out how the money would get from
the Government to the farmers.
The Plan of Distribution.
The plan, as worked out so far, is
that the treasury will deposit the
money with the national banks in the
South under the terms of the AL
drich-Vreeland law. The banks may
use national, State or even county
and municipal bonds and money will
be deposited with the banks up to 90
per cent Of the real value of these
bonds, in no case to exceed par. The
banks will have to pay only 2 per
cent interest. The banks obtaining
the money from the Government will
in turn loan it to the local banks on
acceptable security.
Treasury officials are sending let
ter to the national banks that will
share in this money, suggesting that
they should loan it to the local banks
on terms that. will compare with the
favorable terms upon which they re-
ceive it from the Government, but
the treasury officials do not recon-
mend any specific rate of interest to
Charge Reasonable Rates. M
Charge Reasonable Rates. AS
1t is made pretty plain, however,
that the treasury officials do not
want the banks obtaining m~sSy
from the Government at per cent
to charge hard rates for it, or to
make it difficult for the money to
get into the channels where it will be
needed.
Senator Smith is greatly pleased
with the steps that have been taken
and believes that untold good will re-
suit. Southern people will remem-
ber," he said, chat in times past
it has been impossible to get money
in the South for any purpose or upon
any kind of security, because the
banks in New York were boarding it
and loaning it for speculative pur-
poses. The Government would go to
the rescue of the New York banks
when they got in pinch, but never
before has the Government come to
the rescue of the farmers, as it is
doing now. This action means that
we will get money to move the cotton
crop without having to 60 to New
York for it, and that is what we have
always wanted. There is no way of
estimating the good that will follow
or rather, there is no way of esti-
mating the disaster that has been
averted." K. Foster Murray.
S0TITH CAROL IMAM