The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-08-23
CROP DEPOSITS MADE SOON.
FIRST MONEY FOR MOVING CROP
EVER PLACED IN SOUTH
MPAdoO Announces That Money will
lie Distributed i'm Two AllOtments.
One This Month and One Next.


washington, Aug. 20.-First de-
p0sits of the governments $50. OOO..,
oVo TO ald crop movements will be
made in the Southern States i'm Aug
u"t and September. All deposits in
all states will be made in two equal
allotments. In a statement today
Secretary McAdOo outlined the treas.
ury departments requirements for
security.
Deposits will be made" SAYS the
statement, "only in national banks
located in such of the principal cities
OF the several States as the secretary
may designate. Such banks must
have an outstanding circulation AT
the time of deposit equal to at least
40 per cent of the amount authorized
by law. 1t is understood that such
deposits are made to prevent or miti-
gate the financial tension incident to
the movement of crops, and that tht.
funds received by the banks will be
used in good faith for this purpose
The banks receiving deposits will be
expected to extend to the banks in
smaller towns such accommodations
as may be consistent with sound and
conservative principles of banking,
IN oil
terest charged such banks will be
moderate and reasonable
"As security for such deposits the
bank must deposit with the treasurer
of the United States bonds Of the
United States government, of any is
sue, equal in amount to at least 20
per cent Of the deposit The remain
ing so per cent may be secured-first
by high class State, municipal or
other bonds which have been APPROX
ed by the secretary and which will be
accepted as security at rs per cent
Of their market value; second by
prime commercial or business paper
approved by the secretary, which will
be accepted at 65 per cent of it's face
value. All such paper must bear the
Endorsement of the bank Offering it,
Commercial paper may consist of
first class business paper executed by
individuals, firms or corporations Of
good standing. No commercial or
business paper will be approved by
the secretary until it has been unani-
mously approved and recommended
by a committee appointed for that
purpose, TO consist of six members,
five of whom shall be selected by ana
be members of the clearing house as
sociation of the city in which the
bank applying for the deposit is locat.
ed. The sixth will be designated by
the secretary. In cities where there
is subtreasury of the United States,
the assistant treasurer also shall be
ex-ofiicio n member in addition to the
other six members.
<hIi utpOoltS Will ne ptiliDle OH
demand and without previous notice,
but in order TO afford the relief in
tended and to facilitate the market
ing of crops it is expected that 25
per cent of the total deposits will be
withdrawn by the government on De-
cember Is, 1913, 25 per cent on jan
uary Is, 1914; rs per cent on Febru-
airy IS, 1914, and % per cent on
March II, 1914.
THE banks shall have the right
to return the deposits at an earlier
date if they desire. They will be re-
quired to pay 2 per cent interest on
the average dollar maintained during
the period Of the deposit and also
must pay such expenses as are Incl
dental to the deposits"
Southern states were selected for
the first deposits on account OF the
early movement Of the cotton crop,
which already has begun.