The Dawson news. (Dawson, Ga.) 1889-current, 1913-08-05
MILLIONS TO MOVE CROPS
MADOO TO RESCUE OF FARM
ERS OF SOUTH AND WEST.
Twenty-Five to Fifty Million Dollars
of Government Funds to Be Depos-
tied in a Few Banks.

WASHINGTON, D. C.-Twenty-
five to fifty million dollars of govern
ment funds will be deposited in the
national banks of the South and West
at once by Secretary McAdoo to facil-
itate 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 two per cent in
terest.
The motive Of Secretary McAdoo in
establishing this new policy is to an
ticipate the money stringency in the
late summer and fall, which invaria-
bly, accompanies the marketing and
movement of crops, especially when
crops are unusually large, as the har-
vest now beginning forecasts. He
intends to take time by the forelock
and prevent or minimize the usual
tightness of money.
L. S. Per Cent Bonds Depressed.
In a statement today the secretary
made the significant answer that gov
eminent bonds would be accepted at
par as security for the new deposits
and that the additional money would
be placed only with banks which have
taken out at least 40 per cent of their
authorized circulation.
United States 2 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 95$4 during
the past few days. The secretary's
willingness to accept these bonds at
par as security for the $25, 900
to $50,000,000 of promised deposits
and the inducement to the national
banks to increase their circulation up
to the 40 per cent limit is expected
to help in restoring the parity of the
depressed Is by creating a new mar
ket for them.
For the first time in history the
government will accept prime com
mercial paper as security for depos-
it's This privilege will be granted,
announced the secretary, in order to
make these special deposits available
to the banks on securities readily
within their reach.
THE commercial paper submit
ted added Mr.. McAdoo, shall first
be passed upon and approved by the
clearing house committees of the cit
les in which the banks offering such
paper may be located. All CONNER
cial paper and bonds must finally be
passed upon and accepted by the Sec
rotary"
Approved commercial paper will be
accepted as security for the deposits
at 65 per cent of its face value, and
high class state, municipal and other
bonds, exclusive of government
bonds, at Is per cent of their market
value.
In Principal Cities Only.
The additional deposits will be
placed with the national banks in the
two or three principal cities in each
of the states where harvesting is now
in progress and where the demand
for money for moving crops most
conveniently can be met. The secre-
tary said it would not be practicable
to scatter the deposits among the
smaller cities, especially in view Of
the character of 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.. McA-
doc said, that Is per cent be repaid
in December, 80 per cent in January,
80 per cent in February and % per
cent in March next.