The Pickens sentinel. (Pickens, S.C.) 1911-2016, 1914-10-08
Wants the Money
Nearer the Farmer

Ivy NJ. Mauldin Of PicKens,
state bank examiner, has urged
Secretary McAdoo to consider
whether national banks in this
state with which the treasury
department deposits government
funds may be positively re-
quired to divide these funds with
the state banks, by way OF loans
or otherwise, upon reasonable
terms. thereby placing the funds
in channels through which the
farmer and manufacturer can
be readily reached.
Mr.. Mauldin informs Mr.. Nc
Adoo, in response to an inquiry,
that there is anything else but
a boarding of funds by state
banks" These institutions, he
saws. are manifesting a splen-
did spirit in this crisis. /"
Nj. Mauldin has telegraphed
as follows to the secretary of the
treasury:
your wire received. This
office will be glad to cooperate
with your department in any
manner looking to preventing
the existing scarcity of money
in the South, OF such scarcity as
may be threatened. [ have not
called for a statement from state
banks since June 30, but for the
past twomonths examiners from
this office have been making ex-
aminations of state banks prac-
tically all over the state and re-
ports of these examinations in
dicate anything else but a hoard
ing of funds by state banks.
THE fact is, state banking in
stitutions in South Carolina have
not only loaned practically all
available funds on hand, but
have borrowed heavily from cor
respondents in money centers
and have loaned these funds al
so, consequently they are now
strenuously exerting themselves
to get extension of maturities on
their own obligations to New
York bankers and elsewhere,
until such time that their Gus
toners can obtain a fair price
for the present cotton crop. The
banks in money centers have
shown a disposition to be liberal
respecting extensions of maturi-
ties, and their liberality is tenn
porarily relieving existing con-
ditions. I feel sure that the
state banks of South Carolina
are not boarding funds, but
most of them have gone to the
other extreme and have loaned
very closely, expecting to be in
position by this time to build up
their reserves and meet their
own obligations through the
marketing of the cotton crop.
Il respectfully suggest that,
if some plan could be devised or
some direction from yourauthor
ity could be indicated whereby
national banks in this state with
which you deposit government
funds could be positively reQhir-
ed to divide these funds with the
state banks by way of loans or
otherwise on reasonable terms,
thereby placing the funds in
channels through which the
farmer and manufacturer can
be readily reached, the govern
ment money will thereby speed
lily accomplish the purpose for
which it is deposited. The state
banks of this state are manifest
ing a splendid spirit in this cri-
sis by cooperating as far as they
can with the farmers in an ef-
fortto market the present crop
gradually in such a way as
to secure reasonable prices.
IF urdepartmentcan devise
some practical method by which
government funds under your
supervision may reach the state
banks in this state, [ feel that
such funds will be quickly dis
tributed at reasonable rates and
in such way as to meet the legit-
innate demands of business.
The telegraphic message from
Secretary McAdoo to which the
foregoing dispatch is a reply
was as follows:
Reports now being received
by the comptroller of the cur
rency from national banks
throughout the country indicate
that a money scareity is being
occasioned in large measure
because of the boarding of funds
by many national banks, which
are carrying reserves in some
cases two or three times as great
as required by law, and also
that credits are being restricted
and excessive rates of interest