Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-01
Offer of Government Money to
Move Crops PIeases Ma
ti0naI Bank Advocates.
NEELEY ASKS CONSPIRACY
CHARGES BE INVESTIGATED
Temporary Currency Legislation as
Rider to Tariff Bill Urged Upon
President by Tillman.

minstration were pleased today ovcr Sec
retary McAdoo's announcement last night
that he would put out twenty-five to fifty
millions of government money to national
banks in the crop regions. The tone of
the statement was construed to be friend
ly to national banks throughout, and this
was gratifying to some congressman of
the administration party.
AS a matter of fact they thought it
high time that some such expression
should come from the administration.
Letters received in Washington by men
in touch with their local bankers reflect
rather serious state of irritation existent
among national bankers in some sections,
who have come to the conclusion that this
administration is inimical to national
| banks-another Andrew Jackson regime.
so to speak. Is
McAdoo's Charge Not the First.
This impression was gained, it is said.
not only from the utterances of the radi-
cal democrats in Congress who have been
vociferous and antagonistic to an unpar
alleled degree in their denunciation of ma
tional banks. but also from some state
ments given out by Secretary McAdoo
himself. His charges of conspiracy on
the part of New York banks to depreciate
government bonds was the latest deliver
| ance in this respect. but not the only one
since the present administration has been
in office.
Some congressman think that Secretary
McAdoo is lin bad with the banks of
the country and that the administration
may get in the same boat with him if the
prevailing impression is not corrected.
There are seven thousand national banks,
rejecting as many centers Of financial in
fri f0 bo
administration say it would not be desir-
able to have seven thousand centers of ir-
ritatiOn and resentment.
Secretary McAdoo's offer of last night
also was construed by congressman to-
day to be in behalf of maintaining the
parity of the much abused per cent
bonds. Under his scheme they are to
be accepted at par as security for loans
further stimulation for government
bonds in the requirement that banks
must take out 40 per cent of their
circulation.
Pleases Asset Currency Men.
The offer to accept prime commercial
paper as further security for govern
ment loans wagrcxceedingly pleasing
to the advoca tes of asset currency.
Such security is said to be equally, il
not more, desirable than government
bonds as in fact 1t is a more flexible
asset than bonds Whether banks will
use 1T for loans at 65 per cent of Its
face value when they may rediscount
it at it's full value Is another ques-
tion. At any rate. the asset currency
men claim that this offer Is proof from
the highest authority of their claims
that prime commercial paper is worthy
basis for currency issue.
The whole incident, however, is said
to be more important sentimentally
,Nyr-G five
or even fifty million dollars is de-
clared to be but a mere bagatelle in
the movement of nine-billion- dollar
crop, such as is promised. By the time
corn states it will turn out to be pretty
thin pabulum. it is said. 1t is mainly
valuable it is declared, as a declara
ton Of good intentions. and as such is
such expression will benefit the ad-
ministration.
Big Banks Not Worrying.
BY the same token the action w.d be
a red rag to the men who are denounc-
ing the national banks and coupling
them with all that is unholy in finance
Information from New York is to the
effect that the big banks there have
ceased to worry about the attacks
from Washington. and are not more
irritated than steer in fly time.
The Clearing House Association yester-
day decided to take no notice of the Nc
Adoo charges Of "A bond conspiracy. be-
nevinx that they would die of inanition
if allowed to pass without official action
Of the authorized organisation of the big
| banks.
In this connection. 1t is known here
that one of the most important of the
New York banks has been a purchaser
of the 2s. said to be the object of con-
spiracy Of depreciation. thus presenting
an instance Of very practical refutaton
| Of the charge of conspiracy.
Tillman Urges Legislation.
Currency legislation Of temporary ma
| ture. as a rider on the tariff bill, was
urged upon President Wilson today by
| Senator Tillman as highly desirable.
IIpon leaving the White House, Sena-
| tor Tillman made this explanation of his
visit:
THE purpose Of my visit to the White
| House was to suggest to the President
| the advisability of preparing an amend
| ment to the tariff bill which would give
us Immediately money in the south and
west for moving the crops, and jam both
through the Senate by night sessions il
| necessary / told him the republicans
seemed to object more strenuously to
currency legislation than to tariff legis-
| lation. and l felt the people OF the
country would applaud II we gave them
a dose of both and held their noses until
they swallowed"
Asks Charges Be Investigated.
Representative Eeeley Of Kansas today
introduced in the House a resolution di
| recting the committee on banking and
currency to investigate the charges made
by. Secretary McAdoo that New York
banks are I'm conspiracy to depreciate
government securities.
Mr.. Neeley gave out a statement in con-
nectiou with his resolution, In part, as
| follows:
| My experience as a member of the
money trust committee convinces me that
Secretary McAdoo was correct in his
| statement that there Is deliberate con-