Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1913-08-06
UTH CAROLINA, WEDNESDAY, AUGUST @, 1918.
HOW FARMER GETS THE MONEY
The Plan to Depost $4,000, 900 In
Southern Banks.

Washington, Aug. 2.-The an
nouncement that the government
would deposit $50,000,000 with the
banks In the South for the purpose
OF moving the cotton crop was receiv-
ed with the liveliest satisfaction by
Southern Senators and Representa-
tives in Washington. 1t was upon
the representation Of Senator e. ID.
Smith and Others that the govern
ment decided to take this step 1t
means that Southern banks and the
Southern business men will not be
caught by money shortage this fall
and winter, as was the case during
the latter part Of 1907.
Senator Smith went to the treas
ury department to-day and saw As
sistant Secretary John Shelton Will
liams, himself Southern man, to
find out just how the money would
be distributed. He wanted to find
out how the money would get from
the government to the farmers.
The Plan of Distribution.
The plan, as worked out so far, is
that the treasury will deposit the
money with the national banks in the
South under the terms of the Aid
rich-Vreeland law. The banks may
use national, State or even county
and municipal bonds, and money
will be deposited with the banks up
to 80 per cent Of the real value of
these bonds, in no case to exceed
par. The banks will have to pay
only 2 per cent interest. The banks
obtaining the money from the gov
ernment will in turn loan 1T to the
local banks on acceptable security.
treasury officials are sending let
ter to the national banks that will
snare in this money, suggesting that
they should loan 1t to the. local
banks on terms that will compare
With the favorable terms upon which
they receive it from the government,
but the treasury officials do not rec.
ommend any specific rate of interest
to be charged the local banks.
Charge Reasonable Rates.
1t Is made pretty plain. however,
that the treasury officials do not want,
the banks obtaining money from the.
government at 2 per cent to charge
hard rates for IT, Or to max 1t ID :
cult for-Fs ies mn eneyi to-sget out into
the channels where 1T will be needed.
Senator Smith Is greatly pleased
with the steps that have been taken
and believes that untold good will
result. Southern people will re-
MEMBER he said, chat in times
past it has been impossible to get
money in the South for any purpose
or upon any kind of security, because
the banks in New York were hoard
ing it and loaning 1t for speculative
purposes. The government would
go to the rescue of the New York
banks when they got in pinch, but
never before has the government
come to the rescue Of the farmers,
as it is doing now. This action
means that we will get money to
move the cotton crop without having
to go to New York for 4, and that is
what we have always wanted. There
is no way of estimating the good
that will follow--or rather, there is
no way of estimating the disaster
that has been averted"
Repositories for Crop Money.
Washington, Aug. 4..-Charleston
Columbia, Spartanburg and Green
vile are the South Carolina cities in
which the government will deposit
funds to aid the movement Of the
crops, according to the recent an
nouncement Of Secretary of the
Treasury McAdoo. First Assistant
Secretary John s. Williams said to-
day that Spartanburg and Greenville
had been added at the special request
or Representative Jos. II. Johnson.