The Prescott daily news., 1914-08-29
|. s. WILL ACCEPT
 WAREHOUSE RECEIPTS
National Banks May Draw Funds From Washington on Such Pa per 4 Months Time 75
 Per Cent of Value

| PaleSudluS are to De UaKen aDOut emergency currency to assure that it be not used for speculative purposes. but applied to preservation of staple crops, enabling growers to pick and market their products.
 Among eligible securities to be basis for issuance of emergency cur Irency Secretary McAdoo has finally decided to accept from the national blanks through their respective Ma tional Currency Associations. notes se cured by warehouse receipts for cotton and tobacco and having not more than four month to run, at 75 per cent of their face value
 Since the law leaves it entirely in the discretion of the st Secretary of the Itreasury to issue or not issue emer- gency currency, Secretary McAdoo an- nounces he will not hesitate to refuse Iwhere he is convinced that emergency currency will be used merely for spec lulatlve purposes instead of for harv- esting and carrying crops until req sonable market can be found, and for lneed for legitimate business.
 This precaution was suggested by the charge made by President Mobley of the Arkansas Farmers Union that an Oklahoma bank applied crop nov ing funds allotted to it by the gov erment to promotion of land specu- llation.
 This plan ought to enable the farmers to pick and market the cot ton crop", comments Secretary Me Adoo, If the bankers, merchants and Icotton manufacturers will cooperate with each other and with the farmers land will avail themselves of the relief loffered by the treasury within reason liable limits Such cooperation is earn estly urged upon all these interests. The farmer cannot expect as high price for cotton this year because of the European war, yet he should not be forced to scacrifce his crops
 "The banker and the merchant should not exact excessive rates of in- terest. and the manufacturers should replenish their stocks as much as pos sible and pay reasonable prices for the product If this is done, and it can be done if everyone displays a helpful spirit, a normal condition can be restored, and there ought to be no serious difficulty in taking care of the cotton problem.
 "This is a time when the entire country expects that purely selfish in terests shall be subordinated to the Icommon good; that undue advantage shall not be taken of the necessity of each other I am happy to say that this spirit seemed to animate those who attended the so-called cotton ;on- ference held at my request in Wash ington."
 It is not the purpose of Secretary McAdoo to prescribe the character of warehouses in which cotton and to- bacco may be stored The banks will be relied upon tC see that warehouse receipts issued by responsible ware ihousemen or warehouse companies alone are accepted, and that the cot ton and tobacco stored in such ware houses are covered by adequate fire insurance and are protected against injury by the elements.
 With provision for issuance of emer- gency currency to State banks on se- curity of four months notes attached to warehouse receipts, up to . per cent of their face value, at per cent interest per annum, a bill modifying his former legislative suggestion has been introduced into Congress by Representative Otis T. Wingo of Ar kansas. State banks are excluded from direct benefits of the emergency currency under the law, and the in depreciation of the secretary of the treasury, who also evades considera- ton of intrest rates. Otherwise the course Of the government closely fol- lows Representative Wingo's plan.