The San Francisco call., 1913-08-01
sE ENA7OR TnLMAN
DEMANDS PASSAGE
OF CURRENCY LAW
Says if Relief Is Not Elk
tended Money Pirates
Will Cause South to
Lose $10O,oo0,O00
McADOO PUBLISHES
DETAILS OF PLANS
Government to Accept Com
mercial Paper as Security
for Loans Made

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 s100,000
600 or more" on account of the inability
of southern bankers to get money from
New York pirates
He urged that some kind Of a resolu-
tion be put through Immediately to af-
ford temporary relief, and that the
house banking and currency committee
stop squabbling'' and allow permanent
currency legislation to be enacted.
The senator expressed the hope that
the committee would work out prac-
tieal scheme to inspire confidence in
the business people of the country so
that they would lend money to the
banks at 3 per cent on satisfactory COL
lateral.
EMERGENCY EXISTS
Secretary McAdoo is 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
600, 900 or more by the fall in price of
their principal crop, due to the inabil-
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
"ALDRICH ACT NO RELIEF
"rhe Aldrich- vreeland act, which
authorized the printing Of the $780,
000,o 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, | 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. /. 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.
GLASS GETS BUSY
Chairman Glass. of the house COM
mittee, following out his agreement
yesterday with Secretary McAdoo, se-
cured the adoption OF an amendment
in the democratic conference for the
creation of an advisory board of IL
bankers, whose privilege 1t shall be
to confer at regular intervals with the
federal reserve board that would be
created under the new currency plan.
The motive or Secretary McAdoo In
accepting this policy Is to anticipate
the money stringency in the late sum-
mer and fall which invariably accom-
panies the marketing and movement of
crops especially when they are un-
usually large as the harvest now be-
ginning forecasts. He intends to take
time by the forelock and prevent or
minimize the usual tightness OF money.
BONDS WILL BE ACCEPTED
In a statement tonight the secre-
tarv made the significant announce
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
tional bank circulation. have been de-
pressed recently to new low market
records, dropping to 95& In the last
few days.
The secretary's Willingness to ac
cept these bonds at par as security for
the s25, 100000 to $4,000, 900 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 a new market for them.
COMMERCIAL PAPER GOOD
For the first time in history, the gov
ernment will 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