Evening star., 1914-10-10
Government Should Not Be
Expected to Do Things Be-
yond Power, Says McAdoo.
SENDS COMMUNICATION
TO REPRESENTATIVE HENRY
Objects Generally to Features of
Project for Emergency Currency
to Bolster Cotton Crop.

The powers and resources of the
southern states should be employed fol
the benefit of their people and the ma
tional government should not be ex-
pected to do things which are beyond
its power. I am glad to state that the
federal reserve banks throughout the
country are now practically organized
The resources of these banks will be
available in the very near future fol
the further relief of the financial situ-
alton and for the benefit of all kinds
of business"
This language is part of a commu-
nication to Representative Henry OF
Texas, author of the Henry bill pro-
posing the valorization of cotton, writ
ten by the Secretary of the Treasury
Secretary McAdoo in this letter sets his
face against all proposed legislation
pending In Congress which proposes
the direct issue Of money on cotton Sc
curity. He distinctly makes 1t plain
that the government has taken what
measures it regards as its duty in the
cotton situation. And, further. he indi-
Gates that the further burden of relief
is the south's own problem. and should
be shouldered by the cotton-prod oducing
states.
The plan of Representative Henry for
direct federal aid to cotton growers to
the extent of S400,000,000 was sub
Jected to sharp criticism by Secretary
McAdoo. The other proposal for sale
of 240,000,000 of Panama Canal bonds
to bolster the cotton crop is not practl-
ury generally objects to all features of
the Henry project. Attention is called
to the fact that not only cotton grow
ers, but those who deal in tobacco, ma
nv,d n ha -
commodities are asking similar gov
ernment aid.
Unfair to Other Industries.
'If we disregard every suffering in
terest except cotton said he, 'and
make it the sole beneficiary of govern
mental favor, what becomes of the
democratic principle of equal rights
for all, special privileges to none? If
we enter upon the course you suggest
we must help every distressed industry
fmpartially. To do that would necessi-
tate the issue of many more than S440.-
100000 in bonds and greenbacks and
dangerously involve the credit of the
government. 1t would be a hopeless
principle of finance and economics. with
certain disaster at the end"
Deposits in Southern Banks.
Mr.. McAdoo's letter went exhaustive
ly into the aid so far extended by the
Treasury to national banks in the cot
ton states, showing that it has issued
to them since the war began $6s,000,000
in currency: that it's crop funds there
amount to s11.337,ooo: that Its regular
deposits in the south total $16,os5. 900.
and that there Is available for southern
banks In compliance with law s151, ,000,-
900 more in additional national bank
currency.
What Is really wanted" said the
letter. "is a restored market for cot-'
ton. The value of cotton has been in
jured this year by the European war.
This injury cannot be retrieved nor the
market restored by legislation. any
more than the injury to corn, which
was caused by the drought last year
in the great corn states of the west,
could have been repaired by legisla-
tion.'
In his letter Mr.. McAdoo denied that
he had the right to deposit Treasury
funds, of which Mr., Henry said there
were several hundred Millions. ex-
ciusively in the south. The statutes
required, he said, that such funds be
distributed as far as practicable