The Birmingham age-herald., 1908-04-10
NEW BANKING PLAN
 IS DISCUSSED HERE
STATE PRESIDENTS OF FARMERS UNION INCLINED TO BELIEVE THAT SUFFICIENT AccoMMODA- TON WILL BE GIVEN.

The unique banking proposition sub- mitted informally to members of the State Presidents association, Farmers Educa- tional and Comparative Union of Amer ica, during its session in Little Rock last week by a gentleman claiming to have eaastern and Europeon connections abundantly able to finance the plan. is be- ing discussed in local cotton circles
 It was suggested in the plan that a chain of cotton growers loan and de- posit banks be established in each cotton growing state, with a central depositary bank in New Orleans, for the express and sole purpose of providing banking sys- tenn to finance cotton.
 Special state charters would be neces- sary that would define and limit all bank ing operations to cotton as collateral in one department, and provide for a sep arate accommodation department for or dinary deposits subject to check.
 The statement was made that it would be satisfactory to the people who were willing to finance the deal to establish the rate of 6 per cent on all long time cotton loans to be secured by cotton duly classi- fed warehoused and insured Depositors of long tetrm money would receive per cent interest while no interest would be paid on deposits subject to check. Planters and cotton dealers would be allowed to take stock in these banks and be entitled to representation on the directorate of each bank
 Trained bankers would be placed in charge of these institutions, whose duties would, however be prefunctory as the charter would expressly define and limit the class of banking to which they would be confined
 It was proposed to loan money at a fixed rate per bale for 6, and F months on cotton stored as fast as it was ginned, enabling parties to liquidate all crop ob- legations and preventing the necessity of early forced sales, thus permitting grad ual marketing of any portion of the crop and retention of large proportion as long as the holder desired.
 It was believed that cotton growers would become stockholders to a large amount of the aggregate and that farm CTS generally would choose these banks as Repositories for their surplus funds, tpHltll lO LII W PNi ctht ci eiiiiO ptti7 ances. It was proposed to give prefer ence in loaning to stockholders.
 While the plan was warmly commended by many to whom t was preached, it was not deemed necessary to consider it of ficially at Nthis time. The Presidents as- sociation believe that local banks in each state will furnish banking facilities ade- quate for all necessities at this time and in handling the coming crop. At least, those present were desirous of giv- ing the banks of their various states the opportunity before attempting any in- novation on the existing order of things Moreover, the bankers of Little Rock, Memphis and various cities in Mississippi have formally agreed to finance all farm CTS union cotton in Missouri Tennessee, Arkansas and Mississippi until Septem- ber1, so there is no present necessity for those states to consider new banking propositions
 The knowledge of the new possibility, however serves to stiffen the backbone of the organization and increases the confidence that the Farmers union has come to be recognized as a potent fac tor in the cotton market-the cotton world-and that their plans and objects will probably receive just and proper recognition from financial interest.