The Birmingham age-herald., 1913-08-08
Over 100 Representatives of
South Discuss Proposed
Government Deposit
LOCAL CLEARING
HOUSE REPRESENTED
No Definite Allotments Yet Made
$50 0.000.0 900 to Be Distributed in
August-Alabama Well
Provided For
ny G. r. STEWART

BY G. E. STEWART
Washington. August 7.--tspeelalf
Secretary McAdoo and Assistant see-
reiary williams Of the treasury had In
conference today about 100 bankers,
representing all the large banking cen-
ters of the south. discussing The as
sign menf OF the 50O00.oe0 TINT the
treasury will make TO the banks of
the south for the purpose of assistancc
i'm moving the coming crop.
No definite allotments by states has
yet been made. but it Is definitely un-
derstood that the Treasury viii appor-
tfon the sS0.O0o,000 in August aud $50,
100000 in September. and in the evene
more is needed perhaps another ai-
lotment in October
1t is quite certain that Alabama VIII
be literally provided for Tie .trsas
ury department will issue full states
ment by states as to how the money
win be divided perhaps tomorrow
Birmingham Represented
Brminghams clearing house was
represented BY Thomas Hopkins OF the
First National bank and Otto Mooney
OF the Traders National bank
Michael Cody president of the EN-t
change National bank of Montgomery,
and W M. Neville. representing the
banks of Selma. were also present.
In discussing the proposed distribu-
ting Of funds by the treasury Mr.. Hop
kins declared that it was very pop
ular movement and was favorably re-
ceived by the public as well as the
bankers
1T viii have as good effect from
the standpoint Of sentiment almost az
it will from the financial side" said
Mr. Hopkins.
The First National handles some-
thing like half million bales cotton
directly and Indirectly aud in addition
to that money is needed for the other
crops during the harvesting PERIOD
10 Bs s0plis
/ "Of epurse,T he Confined fthis
money from the treasury viii bo sup-
Elementary TO other funds that tho
banks of the south have, in most iu-
| stances, already arranged for | be-
| lieVe that IL VIII have tendency TO
maintain regular and stable price
for products and viii insure the farm
ers better average price for their cot
ton"
The funds Will be distributed ac-
cording to the needs of the conmu-
mites applying for them If a certain
section Is allotted so much the banks
of the section win be loaned the money
purely upon the merit of the seeur-
tiles and needs of the banks.
| The conference today WAS opened with
an address by Secretary MeAdoo in which
| he explained the purpose of this depart
ment in making the additional deposits
| the general character of the security
which he viii require. the time proposed
for making the deposits with the BANKS
and the time suggested for their with
craNai. He then invited the bankers 10
make eemine9ts and recommendations re-
gar ding details for carrying ont the PLAN
Each delegation was called upon and
explained conditions in their respectlye
sections. indicated the amount of money
which they would like to have deposited
IN each city represented and discussed
otter details Of the arrangements In a.
statement issued tonight Secretary Me-
Adoo announced that as a result OF the
conference the following plan had been
tentatively agreed to;
Accept Security
The secretary proposes to accept as
security for deposits government bonds
ana high class state. municipal and other
bonds of unquestioned standing and also
prime commercial paper All goNernmout
bonds will be accepted at par; all other
bonds must be passed upon by the seere-
tary and when approved will be accepted
al 10 per cent of their market value, All
commercial paper offered must he passed
upcn by a clearing house committee OF
SIX In each city. composed of five menu
hers of the clearing house association
and one additional member not a menu
Der Of the clearing house, who shall be
the special representative of the depart
ment. IN subtreasury cities the sixth
| II ember Of the committee viii be assistant
OF the treasurer Of the United States
resident in such city. IN cities other than
the subtreasury cities, the representative
will be some business man of high char
acter and familiar with the local banks
ana conditions to be designated by the
Sc cretary of the Treasury.
"1t is proposed that the commercial
paper offered as security shall be deposit
ed with one OF the leading banks In the
clearing house cities TO he selected by
| the secretary. The bank thus designated
as custodian of the commercial paper
win be required to give a bond for its