Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-10-14
BANK GUARANTEE To
CAUSE CONFUSION
IN COTTON WORLD?
English and American Bankers
Have Agreed on Form Of
Cotton Bill of Lading Guar
antee--TermS Not Known

A private cablegram received I'm At
lanta from Liverpool. Wednesday morn
ing. states that the form OF cotton bill
OF Iading guarantee to be effective when
the old rule expires on October 81. has
been agreed upon in Liverpool. that
copies Of IL have been mailed TO this
country and that the pErasing and word
ing and conditions OF II have been given
10 the press wires, through which those
details will reach the United States.
where they are So anxiously expected by
the American bankers and cotton buyers.
This private advice precedes the press
dispatches by several hours. for at ?
o'clock Wednesday afternoon no word
had yet reached Atlanta confirming IL or
giving the details Of the guarantee form.
The Information is authentic beyond any
doubt. for IL comes TO A p. Coles. cash
Ter OF the Central Bank and Trust Cor
p0ratiOn. from one OF the English banks
which has been keeping him in close
touch with. the situation MIR. Coles is a
member OF the committee OF i've which
was named by the Georgia Bankers as
ISOLATION and the Southeastern Cotton
Buyers association 20 conduct negotia-
tiOns in their name with the English
bankers.
Inasmuch as Saturday. October Is Is
the last day on which cotton bills OF lao
ing can leave Atlanta in time TO sail
from New York on October is. which I'm
turn is the last day for sailing from
America in time 10 reach England before
the old rule expires on October 81, every
detail regarding the form OF this &C
cepted guarantee is vital for the follow
ing reasons:
The English bankers. caught in the
Knight-Yancey failure with worthless
drafts issued on bogus bills OF lading.
have given American bankers notice that
after October 81 all bills of Iadfng would
have to be accompanied by the American
banks guarantee OF their good faith be-
fore the drafts would be honored.
The English bankers have persisted
In their demand that the aforesaid guar
antee contain these conditions: First,
a guarantee OF the delivery OF the cot
ton at its destination second, a guar
ansee OF the weight; third. a guarantee
OF the grade.
The American bankers have been forced
= cOucede TO the demand for a guarantee
81 the goOC faith Of the bills OF lading
TO help prevent the practice of fraud
But the american bankers have been
eudeavorinS to secure the cancellation OF
the wo-is guaranteeing delivery lover
which the common carriers. and not they
themselves. have controD and weight and
grade.
The American bankers. in other words,
have not been willing to guarantee more
than the good faith OF the bill Of lading
II the form OF guarantee said to have
been agreed upon in England Wednesday
morning includes those conditions, II will,
N the opinion OF Mr.. Coles. produce tenn
sorary chaos in the local cotton market
aud viii result IN an immediate and wide
Ipread congestion OF cotton.
No further result than this lie anticipa-
ted or at all probable. says he. for the
congested shipments would be immedI-
ately bought In here at home.
In the opinion Of local markers and
cotton buyers, IL the conditions which
the English bankers have been demand
ing land which may have been conceded
10 under protest by the American bank
ing and buyers representatives in con-
ference with them in England) have ac-
tually been embodied into the guaran-
tee. Il will have the early effect OF
driving I'll the smaller buyers out or
the cotton business and leaving in il
only ---e larger concerns with big capt.
tzi
Dispatches from New York, published
Wednesday morning. tended to indicate
that the storm center OF negotiations
was located there, where Sir Edward
shol1en, one OF me DIG EnSllsh bankers,
had been in conference with the New
York bankers. But this inference would
De Incorrect. according TO advice re-
ceived in Atlanta Wednesday morning.
This information is 10 the effect that
Sir Edward comes uncovered with no
authority at all from the English com
mittee. and that any negotiations he un-
1ertaxes will be on his own initiative
and must be accepted by the English
committee before they become binding.
The American committee now in Eng
land. and the English committee which
received them there. are the authorities
Eho have adopted the guarantee form
and from whose action the news must
Dc drawn