The Dawson news. (Dawson, Ga.) 1889-current, 1914-08-18
rrARY M'ADOO OUTLINES
81 DIAN OF MAKING FED
ERAL DEPOSITS.
MIST 60 TO THE BORROWER

Ranks Accepting 10 assure le"SurS
O' m,ortment Country People VIII
Dot the Benefit. Commercial Pa
ner Is Defined.
Observation-Disclosures gov
;ng the apportionment OF the
si Dooo OO0 crop money to be placed
hanks throughout the country
.bo federal treasury have been
nnced by Secretary McAdoo In
Su ortioning funds among the banks
ayr oscb city consideration is to be
iuoo TO the character of business
o nv the applicant bank and the
- IN which it is lending money
i+s country correspondents. Par
',,n,or attention is to be given to
~ willingness of these banks to loan
.oonn+rv banks at reasonable inter
- rates the secretary says, the gov
.omant,s chief interest being to
,.,d1o the fund in such way as will
ohio +be ultimate borrower to have
.dvantage Of low interest.
Collateral security accepted for
3ooosits includes United States gov
.,nmont bonds of any issue, high
,.ss state municipal or other bonds
which have been approved by the
..orotarv. and when so approved will
10 accented at three-fourths of their
ire value. In every case the paper
nnst bear the Endorsement of the
hank Offering it. The rules provide:
Commercial Paper Defined.
"The term commercial paper is
spre nsed in it's general, not techni-
aI sense, and may consist of first
class business paper, executed by in
diyiduals, firms or corporations of
good standing and responsibility for
legitimate business purposes and not
for speculative transactions. 1t
should. preferably, bear the names
Of two persons, firms or corpora
tons in addition to the endorsement
Of the bank submitting it, though the
secretary may accept single-name
paper if indorsed by the bank, if
sufficient. No commercial or bust
ness paper will be approved by the
standing of the maker is regarded as
secretary until it has been unani-
mously approved and recommended
by a committee appointed for that
purpose, to consist of six members,
five of whom shall be selected by and
be members of the clearing house as
ISOLATION of the city in which the
bank applying for the deposit is To-
Gated the sixth to be designated by
the secretary"
Cities to receive allotments of the
federal; deposits are to be designat-
ed by the secretary. Applicant
banks will be required to submit the
list of their securities to the security
members (six members). When the
list is approved by the committee
three copies of it are to be sent to
the secretary of the treasury duly
approved, together with a copy of the
resolution adopted by the board of
directors making the application, au-
4 tnorizing request for the deposit and
pedging the securities in question.
Il the secretary approves the securi-
Ties one list will be returned to the
custodian designated to receive such
securities with the secretary's ap-
proYal. One copy of the list of secur-
Tues IS to be retained by the custo-
ulan another delivered to the APP
8piylng bank, and the fourth retained
~! Inc securities committee. Depos-
IT, OF the funds will in all cases, ex-
Ncep' where in the judgment of the
s|eecIetary special condit ons are JUS
u ''lVd, be made in installments of %
% 81 per cent of the total allotted
the district.
Deposits Payable on Demand.
All deposits will be payable to the
s'sury on demand, without previ-
10 notice, but in order to afford the
0"el intended and to facilitate the
iO'eulent and marketing of crops it
VApected, save in special cases to
determined by the secretary, 25
81 cent Of the total deposit will be
''HufaWn by the government on
''emoer 1, 1914, 25 per cent on
a"uary /, 1915, 25 per cent on Feb
10y and February Is, 1915.
D"nAS may return the deposits to