Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-08-26
NJ AD0O OPPOSES 7
CURRENCY ISSUE
BY STATE BANKS
Secretary of Treasury Gives
Emphatic Expression of His
Opinion on Schemes Pro-
posed by Planters. =
4, I.s sosHine JOURNAL srro,.l .s.sso w,ssl

isr MORNING JOURNAL SPECIAL ,s.sro w,s.
washington, Aug. 25.-Assured that
all the currency necessary to finance
the country's cotton and other staple
crops viii be furnished by national
banks on warehouse certificates. n
committee Of eighteen representative
planters. manufacturers, dealers and
bankers and government officials to-
night began working out plans for
actually bringing this money into cir
culation.
steps toward providing safe and adj
ednate warehouse facilities throughout
the producing centers are already un-
der Way and leaders In the movement
are confident that In the course of a
Few weeks the emergency created by
the European war will have been met.
The committee was appointed after
a conference at the treasury DEPART
ment today, and to cooperate with il
Secretary McAdoo designated w. p. O..
harding of the federal reserve board.
=. ). Grand, chief of the office of
markets, and T. n. Carver, of the Of
lice OF markets ana rural organiza-
tons
In an address to the conference See
rotary McAdoo emphatieally con-
demned valorization schemes and sug-
gestions that state banks issue cur
rency
National System Should Control.
IL Is not necessary to have every
body issuing currency" said the Sec
rotary. The national banking svs-
tenn of this country properly-inspectcd
ana under governmental supervision
should be the controlling agency for
'he issne OF the currency in order that
we may Know every dollar that il in
circulation has been supervised by
'he government and that 1t will pass
current Wherever 1t appears"
III you turn money over to tbe nm
lionai banks it will find its way to
me state banks inevitably.
rms Is what is happening in the
department every. State
BANKS are actually depositing their Sc
aurities with the national banks and
ne national banks are getting out the
ssue against those securities and
urning 1t over to the state banks. 1t
$ perfectly simple to get IL. An Won
ave 10 90 Is to have proper secur-
ty.'
MT. McAdoo again pointed out the
'ecessits of banks desiring to obtain
emergency currency joining the ma
'ohai currency associations.
Warehouses Should BE Safe,
l stated here yesterday he added,
that 1t was my purpose to accent
rom the banks Of those currency as
'Siss.sSsss i,oivs ana ohiigatinns se-
uted by cotton warehouse receipts,
roperiy certified and issued by re-
pohsipie warehousemen or ware
oase companies. l do not say that
lose warehouses have got to be built
p'ick' stone steel or anything else,
mat they must be bonded. All
SIX is that those warehouses shall he
I such character to protect the
'''on itself from deterioration or de-
iucuon, with adequate insurance
saihst ilre, and backed by RESPONSE
'e agencies so that when their ware
ouse receipts are issued we know
'a' they represent something actually
storage there, something that can
nad on presentation OF receipts.
what does that mean? II means
'at me national banks OF this coun-
y can borrow to the extent of 20 per
'n' OF their unimpaired capital and
''pius on notes secured by warehouse
'ceipts for staple products mot
one cotton) that l think il is safe
lend on