Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1914-07-31

WASHINGTON, u. u, July Z1.-l
Showing that the country is on a
solid basis and that material pros
perity abounds Secretary Of the Treas
ury McAdoo discusses, in an import
ant interview in the New York World,
the vital questions Of the day, par
ticularly those affecting finance and
usiness. The interview is set forth
here, in part:
What steps are you prepared to
take to assist the banks of the coun-
try in financing the unprecedented
crop yield of this season?
Answer-If the. necessity appears,
shall again deposit Government
money in the banks to assist in mov-
ing the crops. On June 20 let
ter was sent to the president of each
Of the seventy.five hundred national
banks in the country, asking if he ex.
pected any unusual demand in his To-
cality for money during the next six.
months; II so, for what purposes, and
in what month 1t would be most need
ed. The replieb will enable the de-
partment to determine intelligently
what assistance is required.
It is my purpose to deposit Gov
eminent funds. not only to move the
crops, but to help every kind of leg.
itimate business in every section of
lie county whsr1 -f~t~n convinced
that assistance is necessary or desir-
able.
This will be done in a sane and
rational way with due regard to con
ditions and not improvidently In
spite of partisan statements to the
contrary, this administration has done
r,ore directly to help the farmers and
business generally by using Treasury
n oney to relieve stringency, to restore
financial equilibrium and to promote
confidence, than any other administra.
tion within my knowledge.
Last Years Relief.
In fact, this administration, for the
first time in the history Of the Gov
eminent, put money directly in those
sections of the country where crops
were to be moved and where it was
most needed, taking commercial pa
per as security. Every business man
and every banker knows what relief
that gave, because it made available
a vast amount of self-liquidating paper
growing out of trade operations and
provided supply of money in direct
response to the demands of business.
For the first time since the war we
had in effect a flexible currency,
which came into existence when need
ed and automatically retired when
the demand ceased. This was a val
liable object lesson. The country has
secured the permanent benefits of an
elastic currency in the new Federal
reserve act.
Federal Reserve System Soon in
Operation
Do you expect the new Federal re-
serve banking system will be in full
operation in time to facilitate the
crop movement?
Answer-The new Federal reserve
banks should be in operation in time
to materially help the crop move
ment. Whether they are or not the
Treasury is ready and can extend all
the aid that may be needed. The fl
nancial condition Of the country is
SO exceptionally sound now and mon-
ey 10 so easy that no concern what
ever need be felt about the imme-
Giate future. You have not heard
this year, for the first time in many
years, anything about tight money
this fall, or any expressed fear of liza
tility to handle the big crops that
are in prospect.
Commercial Paper as Collateral for
Government Deposits
It has been stated that you will
be willing this year to accept COM
mercial paper as collateral for Gov
ernment deposits in the banks. Will
the failure OF the Claflin Co., with its
great quantity of unredeemed paper
in the hands of the banks, be like
ly to restrain you in any way in car
rying out this policy.
Answer-The Clahin failure will not