Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-07-27
Secretary McAdoo Announces
That Policy Inaugurated by
His Department Last Year
viii Be Followed This FALL
UNUSUALLY LARGE
CROPS ARE REPORTED
Many Cities Do Not Need Aid
to Meet Situation but Those
That Do viii Be Amply
Supplied With Funds,

Washington. July 26.-Money from
the federal treasury will be deposit
ed in national banks throughout the
country again this fall 10 facilitate
the movement Of crops and promote
business generally. Secretary Me
Adoo announced tonight that he
would put out approximately S34,
600. 600 and that he stood ready to
Increase the amount 20 any extent
necessary to meet the eountry's
needs.
The secretary's estimate of what
will be needed is based upon replies
from 5000 national banks To recent
treasury department circular asking
WHITTIER any unusual demand for
money was expected this year and
for what purposes Last year the de-
partment inaugurated the custom of
distributing funds in the crop hand
ling eenters depostng about S35.-
600. geo of the $4,000, 600 Secretary
McAdoo has decided to use for the
purpose.
A statement from the department
tonight said
Department Makes Statement
'These replies (from the national
banks) have been carefully analysed
letins of the agricultural department
as to the prospects for unusually
large crops. They also indicate that
government funds will not be need
ed in the New England and eastern
states and in certain states in tho
west and northwest and In California.
Banks in the following cities express
ed the opinion that 40 government
deposits viii be needed In their 10
calities during the crop moving sea
son.
Portland. ore. San Francisco and
Los Angeles Calf. Tacoma. Wash
and Salt Lake City. Utah.
Some of these cities asked for
and received crop moving ailotments
last year. If it should develop later
that they or any of them require de-
posits. their applications will be
given consideration.
National banks In the following
cities Indicated their desire for crop
moving deposits and government
funds will be deposited with them
Omaha and Lincoln, Neb.; Mus
kogee and oklahoma City, Okla;
Seattle and Spokane, Wash. Dallas.
Fort Worth. Galveston. San Antonio,
and Houston, Tex.
Interest at the rate of 2 per cent
per annum will be charged and the
government will accept as security
government bonds at par, state, mu-
nicpal, railroad and other bonds, ac-
ceptable to the secretary at 10 per
cent of its face value. The secretary
will not require, as he did last year.
that 10 per cent of the deposits shall
be secured by government bonds.
"All collateral offered as security
must be approved by a local COM
mttee appointed by the clearing
house in each city and by repre-
sentative of the government chosen
by the secretary In sub-treasnry cit
les the assistant treasurer Of the
United states in addition to the gov
ernment's special representative, VIII
be a member of the local commit
tee.
I'm apportioning the FUNDS among
the banks in each city, consideration
Will be given the character OF busi-
ness done by the applicant bank ana
the extent to which IL is lending
money to its country correspondent
banks. Blank forms Of applications
for deposits will be provided by the
as was done last year
The collateral will be deposited with
local repositories, each Of which VIII
be required to give surety bond, at
the expense of the depository banks,
to be approved by the secretary, un-
der the same general plan as that OF
last year
The secretary is prepared to be-
min the distribution of funds imme-
diately after the necessary require
ments have been compiled with by
the applicant banks.
The secretary said, in conclusion
that should 1t become necessary to
deposit in the banks greater sum
than $34.000,000 to meet the needs
Of the country, he will not hesitate
to do so.