The Washington times., 1913-08-02
M'ADOO'S PLAN IS
|NDORSED IN CAPITAL
Distribution of Funds to
Banks of South Carries
Out Policy.

Secretary of the Treasury McAdoo's s
plas to distribute from S25, 600 600 TO $50
10000 among the banks of the South
and West for crop moving purposes,
while frowned upon by the New York
financiers, are indorssd by Washington
bankers, who declare such a move is
merely carrying out the policy formu-
lated some weeks ago, and made public
at that time.
The stringency which always has pre-
vailed in those centers during this
time of the year, should be ameliorated
by this move, they say. Former Admin
istratfons have, IL wsS pointed out,
placed the reserve in the hands of the
financial men during the crop-moving
season, but have not distributed 1t in
the immediate localities where il is
most desired.
The contention of the New York
financial men that the money eventually
will be cornered by the banks of the
South and West, which will pay the
Government per cent 10 rits use, is
not held by Washington bankers This
then, will be taken, the Northern capt.
talists say, to take in their outstand-
ing paper held by New York banks, ani
upon which they pay 5 and per cent.
Heavy disbursements credited a de-
felt of Se, ,6S2,6 $50 in the Governments
transactions during July, as compared
with deficit of only $734.sS4 for July.
ls12 Total receipts for the first month
of the new fiscal year were $50, ,23l. .52i,
while expenditures reached SIS. .sl4,2O6.
While customs receipts decreas sed
$S2e, ,S47 during the month, as compared
with a year ago. the deficit was caused
primarily by the following increased eN-
penditures: Army, So. .6S4. 900; navy, ST..
-. .00; rivers and i-arbors, Sl,0S0,O00;
pensions. 81. 6s0, 900.
internal revenue receipts, which for
several months have been climbing to
high records through increased drinking
of whisky and beer and smoking cigars
ana cigarettes, continue to rise, the total
for the month just closed exceeding that
for July Of last year by nearly 81, 900. 600
The net balance in the general fund
yesterday was s152.2 4.O00. including
sos, coo as the free and available bal
ance of the GoveTpment in the Treasury
and banks. Cold coin and bullion in
the trust funds to secure outstanding
gold certificates amounted to s1.b92 =
$4,000. The total cash in the Treasury
was g. 03S 81, 900.
The 7.4sS national banks now in exist
ence have a circulation of SIS. .502, 40S ma
uonal bank notes. During July the
mints coined l,2S5, 600 in gold.
Dun's Review for the week, issued to-
day, says:
Encouraged reports of business con-
ditions predominant and the growth of
confidence is evidenced by increased
preparation for fall and winter trade.
All the leading markets continue quiet,
yet in some instances the midsummer
recession has been of shorter duration
than customary.
The prevailing optimistic feeling was
apparently not impaired by tine report
ed damege TO corn, and the agricultural
situation Is still promising. Gradual
recovery in spring wheat is accompanied
by splendid harvesting returns from the
Southwest
The possibility of a strike on the
Eastern railroads is now more remote,
but financial sentiment was somewhat
disturbed by the reduction in the divi-
dend of a. prominent system although
such action was not entirely unexpected
The revenues Of few roads show a
falling OF. but, in the aggregate. rail-
way earnings continue to exceed the
total of a year ago.
Failures this week numbered 2j6 in
the United States, against 291 last year,
and 30 in Canada, compared with "a a
year ago"
There was no meeting of the WASH
ington Stock Exchange today, the Sat
urday holiday still being in effect.