The Birmingham age-herald., 1913-08-11

nent character of this statement is in the
lhtimation that the crops of the south are
TO be so great that much money will be
required il the farmers are to dispose
Of these crops with profit.
Those who have been familiar for some
Years with farming conditions of the
United States, especially the grain and
the cotton conditions, have learned that
our climatic area Is so great, reaching
from the subtropics to the Canadian line
and from the Atlantic to the Pacific, that
inevitably spots appear every season in
Which climatic conditions have been un-
favorable. But it is usually the case that
damage in ole section is more than made
good by the harvests in other sections.
Therefore, although 1t seems to be certain
that in some parts of the west, particularly
Kansas, intense heat and drouth have af-
feeted the harvests, nevertheless in other
parts of the country the damage is likely
to be more than made good.
The Governments Help
When Secretary McAdoo issued this
statement little over a week ago, the
question wasscautiously asked in this city,
Has the secretary reason to fear that
there is, TO be unusual stringency in the
money market of kind which justifies
the government in taking precautionary
steps SO that this market may be re-
lieved?''
The fear seems to exist in some parts
of the country that what is sometimes
vaguely called "the money powers in
the larger financial centers are so active
as to make money stringeney probable
and that they are denying to the farmers
in some parts of the country financial as
sistance which is needed. That statement
is bluntly made by Senator Tillman and
also by member of the lower house of
Congress. -i+a=
Yet if Wall street has had money in
plenty, so that bankers We're seeking bor-
rowers who would make their loans upon
call so that the repayment could be de-
manded at any moment, a great deal of
this money came from the west and. from
the south. 1t was sent here from those
sections Of the country in the hope that
profitable use codld be made of 1t. When
ever the banks or the people of those
sections want the money which they sent
to New York. Chicago or St. Louis they
can draw against these deposits and be
assured that the drafts will be instantly
honored. 1t is the money of the country
to a great extent rather than the money
of New York city which the New York
banks have been carrying. j. 4-
1t is true that those who direct the
great banks in the larger financial CEN
ters have for some time been preparing to
meet this demond always made at this
season OF the year for funds to move the
crops. That is one of the reasons why
We have been curtailing time loans and
discouraging the flotation of new securi-
ties.
Secretary McAdoo's promise to furnish
the banks In the principal cities of states
Where harvesting has now begun and his
announced willingness to accept as secur-
ity for these deposits not merely high
grade bond up to a certain amount-and
probably a large one--but also commercial
paper. does not differ greatly from the
action of Gov. Leslie NJ. Shaw when he
was Secretary of the Treasury In the
last year but one of his administration as
serretaIy. Governor shay 'd1scoyered in
tire spring evidences of "a probable real
money stringency in the fall Of the year.
1t was about the time of the collapse of