The Mena weekly star., 1913-08-07
MONEY TO MOVE
 SOUTHWEST CROPS
From ? to 50 Million in Govern ment Funds to Be Lent-National Banks Will Be Allowed to
 Accept Commercial Paper.

Washington, Aug. l.-TWenty-fiVe
 to 50 million dollars of government
 funds will be deposited in the na-
 tional banks of the south and west
 at once by Secretary McAdOo to fla
 cilitate the movement of crops.
 Federal, state and municipal bonds and prime commercial paper will be accepted as security for the
 money. upon which the banks will pay per cent interest.
 The motive of Secretary McAdoo in establishing this policy is to an ticipate the money stringency in the late summer and fall, which in Variably accompanies the market ing movement of crops, especially when they are unusually large, as the harvest now beginning fore casts.
 To Hold the "2s" at Par.
 In a statement last night, the secretary made the significant an nouncement that government bonds would be accepted at par as secur- ity for the new deposits, and that the additional money would be placed only with banks which have taken out at least 10 per cent of their authorized circulation. The United States per cent bonds, serving as security for most of the national bank circulation, have been depressed recently to new low mar ket records, dropping, to 95A in the last few days. The secretary's will lingness to accept these bonds al par as security for the 25 To 5O mil lions of promised deposits and the inducemenC to the national banks to increase their circulation up tOI the 60 per cent limit is expected to help in restoring the parity of the depressed 2s by creating a new market for them.
 For the first time in history the ! government will accept prime com mercial paper as security for de- posits. This privilege. in order to l make those special deposits avail able tO banks on securities readily | within their reach.
 The commercial paper submit- | ted added Mr. NcAd0O shall first | be passed upon and approved by | the clearing house committees of | the cities in which the banks off, fering such paper may be located l All commercial paper and bonds . family must be passed upon and ac- cepted by the secretary"
 How Securities Will Be Rated.
 Approved commercial paper will l be accepted as security for the de- posits at 65 per cent of it's face val ue and high class state, municipal i. and other bonds, exclusive of gov l ernment bonds, at 15 per cent of | their market value.
 The additional deposits will be | placed with the national banks in the two or three principal cities of | the states where harvesting is now | in progress and where the demand | for moving crops most conveniently | can be met The secretary said it | would not be practicable to scatter the deposits among the small cities, | especially in view of the character of the securities necessary.
 The banks will be required to re- turn the money to the public treas ury when the crops have been moved The present suggestion is, Mr. NcAdoo said that l5 per cent be repaid in December 30 per cent in January, 80 per cent in February and 25 per cent in March, next.
 The names of banks to receive the deposits and other details of the arraugements will be an nounced later.
 Just as Secretary NcAdoo was announcing his plan, Senator Till man of South Carolina was issuing a statement declaring that unless Congress acted quickly to provide an emergency currency, the cotton planters of the south would lose a hundred million dollars through in- ability to get money to move their crops.