The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-06-02
SECRETARY M'ADO0
IS PREPARING FOR
MONEY STR|NGENCI
Will Soon Be Necessary 10
Handle Crops, So He
Doesn't Wait
-- j.
SEVEN DEPOSITORY
BANKS REFUSE RATE
Decline to Pay Z Per Cent on
Government Deposits,
But Remaining 55Z
Accept 1t

NEW YORK, June 1.--Secretary o.
the Treasury McAdoo Is preparirin
against possible money stringency IN
the fall due to big crops and tar1f
changes, says the National City bank,
in its monthly letter, which will be-
issued tomorrow.
His activities of the last month. In
creasing government deposits by Sl0.-
100000, with its accompaniment. the
imposition of two per cent interest
charge on all government deposits. the
substitution of a broader basis OF bond
security for government deposits. and
the abrogation of reserve on postal
and other funds, all point to this, says
the bank.
Methods Are Familiar.
THE methods employed by the Sec
rotary are familiar ones, but they have
ordinarily been used in conjunction
| with actual and manifest conditions
recurring relief says the letter. After
a distribution of the $4,000 900 set
aside by the treasury for the purpose
of increasing depository balances, the
treasury will still have on hand funds
available for further distribution in
case of necessity.
The present crop outlook gives in-
dication that banks throughout the
large movement, An additional
reason for outstanding treasury re-
sources is to be found in the fact that
customs receipts are now showing a
considerable decline in anticipation
of the lower rates under the new
tariff
Seven Banks Decline to Pay.
There were $50 active depository
banks carrying government deposits
f<~H~ g..
rotary McAdoo issued his order re-
quiring interest at the rate OF per
cent on all government money In the
hands of national banks after June
list. OF this number only seven have
declined to pay the per cent interest
Hereafter all will be required to Fay
lit--nrtha- EnNarnnaeHt deposit Will b0
withdrawn.
Three of the seven banks declining
| to pay interest are situated In New
Y ork city. They are the Chemical
National hank, the National Bank DC
Commerce, and the National City
bank. In making it's explanation a.
to the reasons for It's declination the
directorate of the Chemical bank told
! Secretary McAdoo that never having
| paid interest on deposits of any kind
| since the organization of the bank,
eighty years ago, they were not pre-
pared to change the policy now.
/ Others to Pay.
7 In addition TO the banks abcve
mentioned. there are in New York city
twenty other national banks, which
are government repositories. all OF
which stgnified their acceptance of the
new ruling of the treasury depart-
ment.
| Outside Of New York the four re-
naming banks which will cease to b
government repositories by reason OF
their unwillingness to pay interest, are
/ the National Bank Of Commences. OF
New London. Conn. the Merchants
National bank, of Savannah, Ga; the
| First National hank. OF Buffalo, Wye.
and the Seaboard National bank. az
San Francisco. Cal
! Through the surrender of their Eov-
eminent deposits by these seven
banks. the treasury department will
be enabled to distribute elsewhere. by
reallotment. all such deposits in addi-
ton to the 100000. which has
Just been allotted for distribution.