The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-08-08

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deposited with that bank in the month
of August; the other 5@-per cent in
September. OF the funds deposited. 25
per cent shall be returned by Deem
Der Is: Is per cent by January Is; IS
per cent by February Is. and the re-
manning e5 per cent by March 1.
| Some of the bankers present ex-
pressed a desire to return the entire
deposit on or before Jahuary 1. and
all agreed that the whole amount
should be returned not later than
March !.
Secretary Defends Bill.
At the afternoon session. Secretary
McAdoo addressed the conference for
| the purpose of explaining the provi-
:, sions of the administration bill with
regard to the 2 per cent. The Secre-
tary repeated the argument which he
made two weeks ago against the con-
tention of New York bankers that the
enactment of the currency bill will in
reality impair the value Of the per
cents. 1t was Mr.. McAdoo's contention
thats the value of the bonds will in
reality be appreciated by the Glass
Owen bill.
He pointed out that the circulating
privilege was still to remain with the
. cents, whereas on the other hand adj
ditional privileges were to be conferred
upon the bonds by the administration
hill
Senator Owen and Representative
Glass, chairman of the Senate and House
Committees on Banking and Currency.
also addressed the conference on the
advantage which they believe would &C.
crue to the bankers OF the country from
the enactment Of the measure which
bears their names. These Congressional
leaders declared that the measure would
work banking reforms very desirable in
themselves. aside from the establish
ment OF sound and elastic currency
system secured by commercial paper.
There was another political aspect of
yesterdays events aside from the at
tempt to secure support for the currency
bill. This had to do with the efforts of
the Treasury officials and Of the Presi-
dent himself. to bring the Democratic
administration into favor with the small
country banks.
Presidcnt FeIicItntes Banks.
The President. when he received the
representatives of the conference at the
White House yesterday. spoke Of his
qualification that the rural banks are TO
profit from the tendency now becoming
apparent for the diffusion of credit con-
troll. The inference from the Presidents
remarks was that he believed that the |
domination Of the country's credits was |
passing in some degree from the hands |
Of the big financial centers into the places |
where there is less concentration Of finan- |
cial influence.
The Secretary of the Treasury and As |
sistant Secretary Williams. in similar |
vein. later in the day emphaticalIy ip- |
- t,v
which were to be the immediate receivers |
of the government deposits that they !
would be expected by the Treasury De- |
partment willingly to redeposit or rather |
make loans of these government deposits |
to the smaller banks at nominal interest |
rates. II was emphasized that the Treas |
ury Department Is depositing the sum OF |
5000, 90 in the principal cities of the |
South only as the means of passing these |
funds on to the banks which actually |
reach the farmers.
The Secretary of the Treasury sought |
suggestion from members of the con-
ference as to the method to be adopted |
in passing upon the securities which are |
to be accepted for the deposits. 1t |
was announced last week that govern
ment bonds. State and municipal bonds.
and prime commercial paper as well will |
be accepted. 1t was tentatively decided |
be accepted should be passed upon by
special committee for each city in
which deposits are to be made. Accord
ing to this plan. the Treasury Depart
ment will have a representative on each
Of these committees.
Considering New Plan.
The Secretary sought to imprss upon
the bankers the importance of the work
to be intrusted to these committees. He
pointed out that the government has no
ma chinery itself for passing upon the
quality of the commercial paper which
it would be offered. Instead, he would
have to depend in large measure upon
the big bankers of the South to see
to it that no faulty paper was accepted
as security for the government deposits.
1t had already been decided that COM
mercial paper should be accepted at s.
per cent OF its face value.
A somewhat radical suggestion for de-
creasing the proportion of the govern