New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-27
To Deposit Approximately
S34, 100000 of the Pub
Tic Funds.
M'ADOO REPORTS
BRIGHT OUTLOOK
Saws Statement from 5000
Bankers Indicate Improved
Business Conditions.

Washington, July 20. secretary w
hdoo. i'm All optimistic statement, an
nounccd to-day that he would deposit
in certain cities throughout the coun-
.rv. particularly in the South, approx
matclv s34 600 900 of government funds
Tor crop moving and other legitimate
business purposes. Should ~ become
NECESSARY, this sum viii be increased
Tho money will be deposited win 'ue
hanks as soon as the formal require
ments governing the application Ioi
funds arc complied with.
Mr McAdoo says that the dlstrlOutioE
~ the crop moving FUNDS was decldeG
mon as r result of replies received
from about 5000. national banks IN
answer TO his recent circular, IN whlch
hc asked if any unusual demand ioi
,,oncv was expected this fall, ana Tor
what purpose, and if deposits OF
government funds in different sections
would facilitate the movement OF crops
and promote the general business IN
tercst o,r
tinuos. "have been carefully analyzC,u
and fully confirm the optimistic oui,
lctins Of the Agricultural Department
ne 20 the prospects for unusually large
cropx They also indicate decided
,romisc Of greatly improved business
cordifious and enlarged business actlV-
it,cs throughout the country. ne
consensus Of opinion OF the bankers
;- that il will be OF great beneit TO
tho crop movement and to business
generally If tho Secretary Will deposit
Government funds in the leading cities
Of the county. as was done last year
"Thc replies indicate that govern
mcnt funds Will not be needed IN the
New England and Eastern states and
I'm certain states in the west ana
Northwest and in California.
Cities Needing No Funds.
Bankers in the following cities ex-
messed the opinion that no govern
ment deposits will be needed IN their
localities during the crop moving sea-
son: c.;,
natl. Ohio; indianapolis. Ind; Mime
malls and Duluth. Mimi; Milwaukee,
Wis; Portland. Ore; San Francisco
and Los Angeles. Cal; Tacoma. Wash;
salt Lake City. Utah; Jacksonville and
Tampa, Fla. and Mobile. Ala. !,
"Some Of these cities asked Tor ana
received croD moving allotments last
wear. II it should develop later that
they or any OF them require deposits
.heir applications will be given con-
National banks in the following
cities indicated their desire for crop
moving deposits. and government funds
will be deposited with them, aggregat-
ing approximately S34,0OO,OOO:
Birmingham. Montgomery and Sci
mn. Ala; Little Rock, Ark; Pensacola,
Fla. Atlanta, Macon and Savannah
Ga: Lexington and Louisville. Ny;
New Orleans and Shreveport. La; Bal,
tir,orc. Nd: Jackson. Meridian and
Vickshurg. Miss; Charlotte, Greens
boro and Wilmington. y. c.; Charles
Ton. Columbia. Greenville and Spartan
burg. s. c.; Chattanooga, knoxville,
Memphis and Nashville, Tenn; Dallas,
Fort Worth. Galveston. San Antonio
end Houston. Tex; Lynchburg, Roam
oke. Norfolk and Richmond, Va; Chi
cago. Ill; Evansville and Fort Wayne
Ind: Des Moines and Sioux City, Iowa;
Kansas City also Kansas City, kant)'
&. Louis end ST. Joseph, Mo-; Omaha
md Lincoln. Ncb.: Muskogee and Ok
lahoms City, Okla; Seattle and Spo-
Kane. Wash.
Interest az the rate Of per cent
pcr annum Will be charged and the
government will accept as security gov
ernncnt bonds az par; state, munlci-
pal. railroad and other bonds accepta-
bic 10 tho Secretary, at 10 per cent OF
their market value; approved CONNER
cal paper acceptable 10 the Secretary
a. IS per cent Of its face value. The
Secretary viii not require, as he did
last year. that 10 per cent of the de
oosits shall be secured by government
bonds.
Collateral Must BE Approved.
All collateral offered as security
must bc approved by local committee
appointed by the Clearing House IN
each city and by a representative OF
the government chosen by the Secre-
tsrv. In Sdb-Treasury cities the Assist
ant Treasurer of the United States, in
addition TO the governments special
commemorative, will be a member of the
local committee.
an apportioning the funds among
the banks in each city consideration
VIII be given 70 the character Of bust
ness done by the applicant bank and
tic extent 10 which il is lending money
20 is country correspondent banks.
Particular consideration will be given
70 the willingness of the banks receiv-
ing government deposits TO lend TO
their country correspondent banks a.
reasonable rates Of interest. The Sec
,rctaty is deeply interested in having
the government money distributed IN
such a way as 20 enable the ultimate
borrower 20 get II at the lowest pos
siblc rate Of interest.
"BlanS forms OF application FOR the
deposit will be provided by the de-
rartmen:, a. was done last year The
collateral will be deposited with local
depocitarles. each of which will be re-
euired 20 give surety bond. al the
expense OF the depositary banks, TO be
approved by the Secretary, under the
same general plan rs that OF last year
"Ihe Secretary is prepared TO begin
~ tfc distribution Of funds Immediately
W after the necessary requirements have
been complied with by the applican,
y banks. Deposits will be made subject II
call. but II IS the intention Of the See
Rotary 10 leave the funds on deposi,
ssih The banks for such period as each
Particular bank may require them, ir
no event, however, 20 exceed ri,
months As far as practicable tn,
banks Will be permitted to return tho
ntoncy 10 the Treasury in instalmenti
- suit their convenience.
.ShOuld IL become necessary TO de
posi-, IN he banks greater sum thar
S3f.OOG.OoO 10 meet the needs OF th'
eSuntry the Secretary will not hesi
l.. . .. l.