South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-08-28
VERNMENT TO
ASSIST GROWER RS
VIII Accept as Basis for lSSu-
ance of Currency to National
Bank Notes Secured by Re-
ceiptS.

wAsHTNGTON, aug "a Secy.
McAdoo Thursday formally announced
THAT the treasury will accept as the
basis for the issuance OF currency to
national banks notes secured by
warehouse receipts for cotton or to-
bacco. having not more than four
months 20 run at IS per cent Of their
face value.
The secretary said he would use his
discretionary power to refuse currency
where il Is apparent IL will be used
merely for speculative purposes in
stead of for carrying the crops until
q reasonable market can be found.
The treasury department Will not
prescribe the character Of warehouses
IN which tobacco or cotton may be
stored. The banks viii be relied upon
10 see that the staples are properly
stored and covered against fire and
damage from the elements
In order 70 share in the currency is
sues Secy, McAdoo lays down the fol-
lowing rules for national banks.
No. Not less than ten national
banks in any given territory each hav-
ing an unimpalred capital and surplus
of not less than 20 percent desiring
such currency shall form national
currency association with an aggre-
gate capital and surplus of not less
than $1,000, 000 as required BY the act
Full particulars and blank forms for
ethis purpose may be had upon appli-
cation TO the comptroller of the cur
Tency. Washington, -. c.
No. Amy national currency asso-
citation formed in accordance with law
viii receive the approval Of the sec
rotary CT the treasury. Already 81 OF
such associations have been organized
in the various states.
No. 3-Under the law the secretary
OF the treasury may accept as security
fer currency:
(A)-Bonds of any state or Of any
city, town, county or other legally
constituted municipality or district in
the United States which has been in
existence for a period OF 10 years
and which for a period Of 10 years
previous 70 such deposit as security.
has not defaulted in the payment of
any part OF either principle or interest
of any funded debt authorized to be
contracted by IL and whose net fund
ed Indebtedness does not exceed 10
per centum Of valuation of its taxable
property. to be ascertained by the last
preceding valuation of property for
the assessment OF taxes
(B)-Any securities including com
mercial paper. approved by the sec
rotary OF the treasury. held by a ma
through a national currency associa-
ton under the direction and control
OF the secretary OF the treasury at
not exceeding rs per cent Of the cash
value of such securities or commercial
paper.
(C)--No national bank shall be
permitted TO issue circulating notes
based on commercial paper alone in
excess OF 80 per cent Of its unim-
paired capital and surplus.
No. 4-The total amount OF cur
rency issuable TO any bank including
its circulating notes issued against
United States bonds shall not be more
than 125 per cent OF its unimpaired
capital and surplus.
No. Each bank or currency asso-
citation receiving currency must main
tain in the treasury at Washington a
redemption fund I'm gold of at least
FIVE per cent. TIE secretary Of the
treasury may ar any time require such
additional deposits in gold as in MS
Judgment may be sufficient for the re-
demption OF such notes