Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-08-26
CROP MOVING DEPOSITS
Secretary Of the Treasury StiPulates
Conditions for Their Use

Secretary of the Treasury stipulates
Conditions for Their Use
The treasury department q few days
ago began sending out the $4,000, 900
which Secretary McAdoo not long ago
promised to send to agricultural re-
gions to help in the work Of moving
the crops. 1t is expected that $2,000,-
900 or more of the fund will come to
South Carolina, and most Of 1t will go
to Columbia, Spartanburg and Green
vile banks. and be distributed through
them to the smaller banks. Secretary
McAdoo has issued the following state
ment with reference to the loans:
Deposits will be made" says the
statement, "only in national banks To-
Gated 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 forty per
cent of the amount authorized by
law 1t Is understood that such de-
posits are made to prevent or mitigate
the financial tension incident to the
movement of crops, and that the 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 con-
sistent with sound and conservative
principles of banking, and that in all
cases the rate Of interest charged such
banks will be moderate and reasonable.
"As security for such deposits the
banks 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 ten per
cent of the deposit. The remaining 80
per cent may be secured-first by high
class state, municipal or other bonds
which have been approved by the Sec
retary 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 secre-
tary, which will be accepted at IS per
cent of its face value. All such paper
must bear the Endorsement Of the bank
offering 1t.
Commercial paper may consist of
first class business paper executed by
firms or corporations Of good standing.
No commercial or business paper will
be approved by the secretary until 1t
has been unanimously approved and
| recommended by a committee appoint
ed for that purpose, to consist Of six
members, five Of whom shall be select
ed by the members of the clearing
house association Of the city in which
the bank applying for the deposit is
| located. The sixth will be designated
| by the secretary.
"All deposits will be payable on de-
mand and without previous notice, but
in order to afford the relief intended
and to facilitate the marketing of
crops it is expected that 25 per cent of
| the total deposits will be withdrawn by
| the government on December Is, 1919
% per cent on January Is, 1914; 25 per
| cent on February Is, 1914, and 25 per
cent on March IA. 1914.
1.-The banks shall have the right to
return the deposits at an earlier date
If they desire. They will be required to
| pay per cent interest on the average
| balance maintained during the period
of the deposit and also must pay such
| expenses as are Incidental to the de-
posits."