New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-15
AMERICAN BANKS MAY
FINANCE COTTON CROP
European Conference Refuses to
Accept Proposed Plan for
Valuation.
BANKERS HERE UNYIELDING
Will Make No Further Conces-
sions-Importers May Have
to Come Here-Effect
on Trade.

London, Sept. IL, was decided at to-
days conference OF European bankers in
ierested in the cotton trade that they were
unable 10 accept the valuation plan sub
United by the American Bankers Assocta-
ton. The decision was reached after a long
discussion BIZ representative bankers OF
England and the Continent
The resolution Of the bankers embodyins
this decision expressed regret at being Un-
able to regard the American proposal as sf-
fording the protection desired by European
hanks accepting cotton. Consequently. and
IN default Of the production Of any other
satisfactory plan of guaranteeing American
cotton bills of lading. the meeting con-
frraed the resolution passed by the commit
tee il JULY This resolution was the origi-
nal ultimatum Of the English bankers to
the American bankers, declining TO accept
drafts against bills of lading unless these
latter were guaranteed
The conference is still prepared, however,
through its committee. to meet deputation
from the American Bankers Association in
London
The insistenoe Of the foreign bankers that
American banks guarantee export cotton
bills Of lading after October 81 means. in
the opinion Of leading bankers here, that
the foreign bankers VIII either have to send
their money here 10 buy the cotton before
shipment or the crop will be financed by
American bankers
The refusal OF the foreign bankers to &C
cent the valuation certificate plan for safe
guarding cotton bills adopted by the COM
nittee Of American bankers as a sausfac-
tory solution of the problem Of protecting
the importers against fraudulent bills,
somewhat disconnected the bankers here
Who have taken an active part in attempt
ing 10 settle the question. They said. how
ever that they would make no further con-
cessions and that the foreign bankers
would find that American bankers were as
determined as themselves not to recede
from their position, which was that they
would refuse 70 give 2 guarantee. hoth De-
r-,rse American national banking laws pro-
r7iti- sua-ante eing the obligations of third
nsr-v and because il is considered unsouhd
banking to DO so
Walter 7 Frer. e-president Of the
Corn Exchange Bank and Chairman OF 'ne
bankers committee referred to. said that
h.a not vet received official notification
rom London Of the action Of the foreign
,--l,.-s b7f- that Il il was as reported
=. American banks would stand firm IN
-+eir refusal TO guarantee export cotton
nils of lading-
". are acoeptinz these bills with the
z7a7fda-ion certificates attached. ne s@lu'
and will continue to % so Il the Iorelsn
bankers refuse 70 accept them we VII
lo,6 n, TO them until they become que
ard make whatever profit there Is On 'ile
transaction ourselves In other WORDS lI'e
cotton crop viii be financed by ArneFlCen
bankers"
" added that while this might cause
come slight confusion at first. in the long
--.--zv.ouslv 70 American banking inter
ee-s He was asked II any preparation
ba1 been made by bankers here 70 hnance
-te oo+ton movement in view OF the faCI
that the exports Of the commodity hau
.,.,-aged more than $500 600 600 for the
asst i've wears. and replied that there had
not been any particular preparation. ana
that none was needed meeting 81 the
committee would he held to-day. he added.
when some formal reply would probably
he made TO the action Of the European
bankers.
John Z. Gardin one Of the vlce-presl-
dents and in charge Of the foreign eX-
--sr-e deps-tlnent Of the National City
Bank. said.
we have done our best. ! cannot say
q Ibis stage how matters will turn out
This j. certain, however, We have about
ssoo 09n 60o worth Of cotton 70 export. Of
which Liverpool takes a. d rule about
$50 600 0en Now. the world must have
cotton. and if Liverpool does not take IL
some che else will London bankers are
asking too much as they do not in turn
Fusrantee bills of lading. The effects
lIron exchange VIII he rather disorganiz-
7r- but I believe the situation vii clear
itself in time.
Max May. vice-president Of the Guaranty
Trust Company. said that the question vas
~ru ~ to the foreign bankers. he did