The Washington times., 1913-08-20
NJ 'ADOO OUTLINES
CROP FUND PLANS
Insists Money Must Be Used
by the Depositories for Aid
of Smaller Banks.

detailed explanation of the plan to
be followed in depositing Government
funds in national banks to facilitate
the movement and marketing of crops
was made this morning by Secretary
of the Treasury McAdoo. Instructions
were sent TO all the banks which are to
be depositores, for their guidance in
| handling the funds.
Particular stress was laid by the
Secretary on the fact that the funds
must be received by the banks for the
aid Of smaller banks in good faith,
and not for speculative purposes. 1t
is not intended says the Secretary's
statement that such funds shall be
utilized by the repositories selected to
discharge their obligations to other
banks. such as rediscounts or bills
payable. but in order that the legiti-
mate purpose of the deposit may be ac-
complished the banks receiving the
same will be expected to extend to
the banks in smaller towns such ac-
Commodations as may be consistent
with sound and conservative principles
of banking, and that in all cases the
rate OF interest charged such banks
will be moderate and reasonable"
The repositories are to be looked for
by the department to "aCt as mediums
of distribution in furnishing funds to
the localities in need of them for the
purpose stated, OF transporting and
marketing the crops"
AS security for such deposits. Secre-
tary McAdoo has ordered that the
banks receiving an allotment must
deposit with the Treasurer of the
United States Government bonds equal
in amount 10 at least 10 per cent of
the amount of the deposit. The re-
ma lining 80 per cent may be thus Sc
cured:
First-By high-class State, munich
pal or other bonds which, II approved
by the Secretary, will be accepted as
security at rs per cent of their mar
llct value.
Secondly prime commercial paper,
approved by the Secretary. which will
be accepted at 65 per cent of its face
value. all such paper to bear the in
dorsement of the bank offering II.
There was a slight change for the
better in the tone of trading on the
Washington Stock Exchange. and while
the number OF actual sales does not
show what really transpired, the listed
securities became stronger. and a rise
of one or more points in various quota
tions resulted The trading stopped,
the brokers were armed were filed.
Mergenthaler attracted no little at
tention. Yesterdays bid price of 212
rose III points. The asked price yes
terday of 216 today advanced ! point
From Boston came the announcement
changed hands there yesterday at 2ls.
This strengthened its value during the
session
There were no sales of the type ma
chine stock, however. Lanston. also.
was bid for freely, although buyer and
seller were unable to get together.
Railway common was the feature of
the trading In four blocks, IS shares
changed hands at 80.
A $1,000 Potomac Consolidated 8 per
cert bond sold at 100 One of the $l.OO
5 per cent bonds of the Washington
Gas Light Company brought l07.
In Capital Traction 5 per cent bonds.
S. 800 sold at los
Bank stock was active. and during
the regular session, shares of Union
Trust sold at l35.
The annual meeting OF the stockhoid-
ers Of the East Washington Heights
Traction Railroad Company. at which
board Of directors Will be selected, VIII
be held in the offices of the company,
Central National Bank building, late
this afternoon. The polls will close at 5
O'Clock.
Depositories in which the Government
keeps it's money to pay. its expenses
have more than doubled since February
10, according to figures obtalnahle at the
Treasury Department. on that date
there were about 40 repositories in vari-
Gus cities. Today there are $50. The in
crease is a direct result of the Treasury
order that all drafts on Government
funds be drawn upon the Urea sury. This
necessitated an increase in the deposi-
tories. so that the funds could be made
more accessible.
7. ThiIman Hendrick has returned TO
Washington after a brief vacation, and
was on the Exchange today.
The total revenues of the railroads
of the United States for the year ended
June 30 last, amounted to S2Gg@ 95S.
and the total operating expenses 20
s., $50. 90, ,35S The net operating revenue
vas SS32 So, en-, which the previous year
amounted to 75l,04S.255. These figures
. hHv Int %