South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-03-11
NE " MONEY LAW
To AID FARMER
MOVE HIS CROPS
Wilson's Administration Ex-
poets to Escape Trouble
BY Avoiding a Money
StringenCy.
BY VICTOR ELLIOTT.


WASHINGTON, March I1.-Before
the farmers and ranch owners in the
vest move their crops 10 market next
TALL the administration new cur
rency measure will be in full effect.
Announcement TO this effect was made
10y Secretary OF the Treasury William
q. McAdOO and Secretary Of AgTicul-
ture David J.. Houston, who have been
engaged in the organization work in
cident to the creation OF the new n
rancial system OF the country since
congress passed the measure two
months ago.
According 10 Secretary McAdOO, the
new law Will provide "a currency suf-
ficiently elastic TO enable farmers to
obtain all the money they need to
move crops. Heretofore, especially
during the first year Of a new admin
istratiOn. a money Stringency was al
ways evident at the crop moving pc
RODS. The Aldrich-Nreeland bill was
passed by congress just before the
house Of representatives became dem
Ocratic II authorized the secretary
Of the treasury TO issue currency to
the amount Of $500. 100000 IL in his
discretion il was necessary for the
movement Of crops or for any other
emergency. This money was never
put into circulation for the reason
that at no time during the past sew
eral years. since the panic Of 1907,
has IL been necessary for. the United
states government TO issue additional
currency for any particular purpose.
The provision. however, gave the sec
rotary Of the treasury power TO stop
incipient panics and also the power 70
issue currency to relieve stringency
in any particular part of the country.
Prevents Monopoly.
Now that an entirely new currency
system has been devised some finan-
Cial experts declare il Will be impos-
sible 10 tell how il Will work Sec
rotary McAdoo has reminded the gen
eral public, however. that the $780,
900. 900 OF emergency money Is held
1T the treasury department., and II
necessary the whole sum will be turned
loose into the money markets to re-
lieve congestion and prevent an an
solute monopoly in staples.
The day according TO him. has been
forever passed when any set of men
will be able completely to dominate
the finances of the United states. he
attributes this TO the effect that the
new currency system VIII have upon
the country at large and upon big
inanipulators in Wall 81. and Chicago
particularly.
Through the establishment Of a fed
eraI reserve system, il is the aim or
the law 20 prevent the congestion OF
money in New York city and Chicago.
IL is hard to see, according TO some
financial experts. how the accumula-
ton of a tremendous reserve IN New
York will be prevented, as the balance
Of trade will always be with the great
or CITY. Southern. middle western,
western and Canadian cities generally
clear through New York. This ne
Cessitates the holding of large reserves
in New York and the banks there
have built I'D tremendous capitals and
movement has been started TO bring
mart OF this reserve back home, that
is 10 keep within the regional reserve
district. a large part Of the money
that now is kept on deposit IN New
York banks.)
Could Tie Up Market.
Under the old system, Secretary
NIcAdoo explained. it was possible for
New York bankers so 10 tie up the
6nances of the country that 1t would
he impossible for the west and the
south to obtain money with when 10
harvest their crops.
il would be impossible for New YORK
entirely TO deplete the regional re-
serve districts as the secretary OF the
treasury is empowered TO issue addl-
tional currency either by giving per
mission for banks To increase their
holdings or federal reserve notes or
stock or by making deposits OF gov
ernment securities in districts that
are effected.
Under all circumstances" said Mr..
NIcAdoo, 81 do not see how, under the
present currency law, the United
States will ever have another money
manic. Even in times OF exceptional
stress. such as strikes, etc, the gov
eminent will be able 70 step In and
effectually relieve conditions"
Within the next few weeks, the or
ganization committee OF the federal
reserve system Will announce the re
gfonai reserve districts and shortly
thereafter President Wilson will name
the federal reserve board. The five
or seven men composing this board
will administer the new law.