The Leon reporter. (Leon, Iowa) 1887-1930, 1913-08-07

tuO LGOA, 1O"oS oStOAASS"
TREASURY'S OFFER CAUSES
SURPRISE.
Bankers Say Little Over McAdoo's
Plan to Help Move Crops.
Two financial guns have recently
been touched off by Secretary NC
Adoo which the big bankers admit
have had the effect of clearing the
atmosphere and dissipating some OF
the storm clouds which threatened
to break and cause trouble this tall
when the crops are ready to be NOV
cd.
The big noise was made when the
assn. ance came from Washington
that there is $500,000,00O available
to overcome any condition when
might be created through an abund-
ant crop pressure. The second re-
port came a day or so ago through
the announcement that $50 ,O0O,OOO
of currency would be deposited IN
southern banks to take care OF the
cotton crop.
Bankers have had no comments to
offer because the determined action
of the treasury officers has taken
them somewhat by surprise. The ef-
feet, however, has been to loosen up
money all over the country and par
ticularly in the securities markets.
The bond market has been stimulat-
ed although the rates on contracts
running more than a year have not
been lowered. While the bankers
are cautious a better feeling seems
to predominant.
mr.. Crops Dominant in Iowa.
In Iowa the dominant question IS
the crops. Showers have been ex-
perienced in many parts OF Iowa the
last week, but there are sections
particularly in the southwest where
rain is badly needed. The condition
which caused the most serious alarm
was the hot, dry weather which pre-
vailed early in the week.
Bankers are keeping in close
touch with the crop conditions in the
country and the assurances regard
ing the small grain are Of the most
tattering description. 1t is believed
that Iowa will make the biggest
showing in years in the matter OF
wheat, rye and oats. The grain is in
fine condition and there is no oat
rust as first reported. II there Is rust
it is in very isolated sections, for the
crop in general is reported to be ex-
ceptionally good.
While the usual scare has been
entertained that corn must suffer II
rain does not appear soon, yet it is,
after all, the same old scare that
happens along every year at this end
of the season. When the need for
. rain becomes serious there is rea-
son to believe, based on past expert
ences, that Iowa will get the rain.
This is tantamount to saying, there
fore, that Iowa will not be behind
other years in the matter of turning
out a big crop, and the appearance
of the fields is such as to encourage
indulgence of the belief that the
corn crop this year will be equal to
any previous year. There is small
reduction of acreage, but it is said
that this will be overcome by the
fuller yield in the planted fields.
The indications are that the yield
will be as heavy as any that Iowa
has produced.
Sense of Encouragement.
With the crop situation in an ex-
ultant condition and the foreign
money conditions showing steady
improvement there is sense of en-
couragement over the business pros
poets for the fall. The one disturb
ing element over which bankers con-
tinue to worry is the currency bill.
There is not banker who does not
believe that better currency system
is needed but national bankers are
satisfied that the Owen-Glass mea-
sure in it's present form is precisely
the bill they do not want and that
it's operation will result in lugub-
rious commercial disasters.
All the Iowa bankers, however,
are not satisfied that the administra-
ton bill is as black as il is painted.
In fact some of them tell you in
confidence, mot for publication OF
course that it is good bill and that
with a few changes Of minor char
acter the bill cannot be improved.
These men who are in majority in
Des Moines, but apparently not in
the country at large are satisfied that
the bill is going to work hardships
on nobody. They assume that the
administration is trying to improve
the commercial conditions of the
country instead of trying to annihi-
late them.
Wonder About Congress.
The opinion of these men seems
to be backed by some of the greatest
bankers in the country. The big in
terest now is in specializing on what
the house and the senate will do to
the currency bill. Those opposed to
the bill expect to see it riddled when
it reaches the senate. They are sup
ported in their views by assurances
received from Iowa representatives
in congress. The bankers who have
confidence in the bill are satisfied
that the currency bill will have clear
sailing and that few changes will be
made in the measure.
The thorn for bankers in the pro-
posed bill is the jack pot style OF
financing the federal or regional
banks and creating the reserves
which it will carry.
3 .If it were not for the clause maxi