OCR Text |
Show PROVIDES FUNDS TO MOVE CROPS GOVERNMENT COMES TO AID OF FARMERS IN THE SOUTH AND WEST. Between Twenty-five and Fifty Million Mil-lion Dollars of Government Funds to be Used to Prevent the Usual Tightness of Money. Washington. Twenty-five to fifty million dollars of government funds will be deposited in the national banks of the south and west at once by Secretary McAdoo to facilitate the movement of crops. Federal, state and municipal bonds and prime commercial com-mercial paper will he accepted as security se-curity for the money, on which the banks will payj two per cent interest. The motive of Secretary McAdoo in establishing this policy is to anticipate an-ticipate the money stringency in the late summer and fall, -which invariably invaria-bly accompanies the marketing and movement of crops, especially when they are unusually large as the harvest har-vest now beginning forecasts. He Intends In-tends to take time by the forelock and prevent or minimize the usual tightness of money. For the first time in history, the government will accept prime commercial com-mercial paper as security for deposits. This privilege will be granted in order or-der to make these special deposits available to banks on securities readily read-ily within their reach. |