Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-10-21
BILLS OF LAD|NG
GOOD THING FOR SOUTH
New York Agreement Results
in the Payment for Cotton,
Until December 81

Local bankers are very much pleased
over the announcement made in New
York late Monday of an extension from
October 81 to December 81 of the period
during which cotton bills will be ac-
cepted in current terms by foreign bank
ers.
This decision. after weeks of uncer-
tainty, places the cotton situation where
IL was previous to the time that knight.
Yancey & Co. were charged with issu-
ing fraudulent bills of lading. Cotton
firms may now attach their bills or
lading to drafts on foreign banks and
get their money at once. Had the extern
sion not been granted, the firms and con-
sequently the south, would have had 10
wait until cotton was actually delivered
abroad before getting their money, and
a delay of from four to six weeks would
have resulted.
BY December 81, when American and
foreign bankers will again consider the
bill of ladlng question. the crop will
have been marketed. and some definite
arrangement will be made satisfactory
to all parties concerned before another
cotton crop is marketed.
UNCERTAINTY REMOVED.
Consequently all uncertainty as to the
present crop has been removed. The vast
business operations that depend on cot
ton will not be halted, and the farmers,
merchants, jobbers and banks will be
paid without delay. Immediate circula-
ton of cotton money will begin.
Previous to the Knight-Yancey episode
there had been no complication. That
firm. however, was charged with is
suing bills of lading, attaching them
to drafts on foreign firms, and getting
cash for cotton which never existed.
Just how much the foreign firms and
banks lost has never been known.
At any rate, a great howl went up
from abroad, and foreign banks and
cotton firms announced that after Octo-
Der 81 they would honor no more Ameri-
can cotton bills of lading under the old
terms. American and English bankers
then went into various conferences to de-
wise a plan whereby foreigners might
be protected against spurious bills of
lading, and the south at the same time
might receive cash payment for its cot
ton before actual delivery.
SUGGESTIONS TURNED DOWN.
The first suggestion of the foreigners
was that American banks should guar
antee the bills of lading. Most banks,
particularly the national banks, which
had neither the corporate power nor the
inclination to act as insurance agents,
disapproved of this plan, but it was sug-
tificate of attestation, which, while not
guaranteeing the bills. would specify that
the firm or individual shipping the cot
ton was known to the bank.
The foreigners, however, insisted on
a financial guarantee, and this plan fail
ed. At the most recent conference in
New York between Sir Edward II. Hol-
den, the English broker representing
English and continental interests, and
American bankers, it was suggested that
a guaranty company be formed, whAsh,
at so much a bale, would guarantee the
genuineness of the bills of lading.
This proposal met with protest all
over the south on the part of cotton
exchanges and other cotton interests.
Finally Monday night, the New York
conference agreed 10 let things stand
they were previous to the Knight-Yancey
failure until December 81, when further
conferences win be held.