New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-01
Secretary MCAdOo Decides to
Deposit from SIS, 100000 to
S5O,OO0,O00 u. S. Funds.
REVERSES M'VEAGH POLICY
Will Accept Government Bonds
at Par and Commercial Paper
as Security - Tillman
Urges Quick Relief.

Washington, July a.-To relieve a
stringency in the money market and ia
cilitate the harvesting and movement OF
crops. the Secretary of the Treasury an
nounced to-day that he would transfer
between 5000 ooO and s5oC0o,c0o from the
Treasury TO national banks In the south
and West, and make the money availaole
on comparatively easy terms.
The money will be deposited in two or
three Of the largest banks. These banks
have not yet been selected, but the de-
posits will be made only in banks which
have taken out at least 40 per cent OF
their circulation.
II is the belief Of Secretary McAdoo
that the money can be returned TO the
Treasury within six or seven months
His idea IS that the return should De 10
rer cent in December. 30 per cent In
January, 80 per cent In February ana
the balance in March. This plan. how
ever. is not definite. but will be subject
10 changes TO meet conditions which
may develop
Will Accept Commercial Paper.
Secretary McAdoo announced that prime
commercial paper will be accepted as Sc
curity In addition TO government ana
high class state and municipal oonos'
The commercial paper. however must
PASS the clearing houses and receive the
Anal approval OF the Secretary OF the
Treasury. As security government oonds
will be accepted at par, while other
1T
their market value. The approved com
mercial paper will be taken at 10 per cent
OF its market value. Interest Will De
charged at the rate OF per cent per
annum.
This new policy is the antithess OF that
adopted by Secretary MacVeagh' VINO A
year ago declined to make government
deposits TO relieve the tight money mar
ket. on the ground that the moderate
surplus federal funds at that time shouIu
be held as reservoir TO be utliizeo AZ
q some possible critical stage.
With the net balance in the genera
fund to-day amounting 70 nearly VIZ
= on on. Secretary McAdoo has taken the
stand that the government should ah'ici-
pate the situation by placing oeposi''
where and at the time they are neeueu'
If the full 100000 is deposited, II Will
,emnorarily nearly double the govern
,,ent's deposits with the banks which at
present hold 100000 OF federal funds.
y Tillman Backs McAdoo.
Secretary McAdoo has found another
member Of Congress to support MS
charge OF conspiracy against the Ne"
York bankers in the person of Senator
Trlman. who issued a statement to-day
expressing the hope that currency Dill
would be passed, or some plan adopted
nv which Southern banks may obtain
money to move the cotton crop. II no
relief was afforded, ne said, the Southern
nlanters would be robbed Of slooMo,oo
II for one" said Senator Tillman' am
tired Of seeing our people held up ana
rohbed by the New York pirates. who ap-
near TO be willing TO scuttle the ship
rather than lose their grip on the farmers
OF the country"
81 sincerely hope" the Senator's state
rnent said that the Banking and Cur
rencv Committee Of the House Of Rep
rasentat,ves can work out some practical
hls schene that will inspire the conf
dence Of the business people Of the coun-
try for lending money TO banks at pei
cent on satisfactory collateral
Mr.. McAdoo is we'll informed as 10
the business conditions in the United
States, and I am willing TO leave It 10
his good Judgment as TO what collateral