Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1914-11-04
NEW COTTON PLAN EVOLVED.
More Practical Than Any Plan Yet,
Says Secretary McAdoo.

washington, Oct. 24.-After weeks
of negotiation between bankers and
Federal reserve members, a tentative
agreement was reached tonight,
when the board virtually approved
plans by which a fund Of $135, ,00O,-
600 will be raised to care for the sur
plus cotton crop and extend aid to
cotton producers. The plan is slightly
different from that originally pro-
posed, but loans will be made on cot
ton at cents pound, bearing inter-
est of not more than per cent for
one year, with a privilege Of six
months extension.
The reserve board will have direct
supervision Of the fund, but probably
will operate through Il committee Of
bankers and business men.
All details Of the plan were not
made public tonight. New York
bankers have agreed to subscribe
$50, 100000 to the fund and South
ern banks are counted on for $35,-
100000. The remaining $50,000,-
5000 is to be raised in non-cotton
producing States.
McAdoo's Statement.
Secretary McAdoo outlined the
plan tonight in the following state
ment:
'"The Federal reserve board to-day
continued consideration Of plans for
relief of the cotton situation, giving
special attention to plan suggested
by A. II. Wiggin. J. S. Alexander, A.
J. Hemphill and VIM. Woodward, Of
New York, and T.. J. Wade. of ST.
Louis, for the raising of a cotton loan
fund aggregating $i35, 100000. This
plan has been evolved from that orig
inally proposed by Mr.. Wade. Ful
details cannot be given oUt until it is
submitted to bankers in leading
financial centerS to ascertain whe
ther or not they will support it. 1t
has been approved tentatively by the
Federal reserve board, and bankers in
the leading financial cities will be
asked Immediately to subscribe the
necessary amount. New York city
bankers have agreed to subscribe
S5O,0O0,OO0 upon condition that an
additional $50, 100000 shall be sub
Scribed by cities in non-cotton pro-
ducing States. The remaining $50
100000 is to be provided by the cot
ton States.
Six Cents Pound.
"The new plan contemplates the
loaning Of money on cotton at six
cents a pound and at an interest rate
not exceeding per cent for a period
of one year, with the privilege Of a
renewal for an additional period OF
six months. 1t is provided that all
services rendered In the adminiStra-
ton of the fund by voluntary commit
tees and bankers shall be without
charge, but that the borrowers shall
pay 3 per cent on the amount loaned
to them into a fund which is to be
called the guarantee fund and is to be
used exclusively for paying the neces-
Sary expenses of administration,
which it is estimated will not exceed
one-eighth Of one per cent, and the
remainder to be used to make good
any losses which may be incurred on
loans that may be made on cotton at
the stipulated rate Of six cents per
pound. Upon the conclusion Of the
whole transaction the arount of
money left in the guarantee fund will
be returned pro rata to the borrow
ers.
'It is hoped that responses may be
received from the bankers Of the lead
ing cities early next week. If favora-
BILE the plan will be put into immedi-
ate execution. In that case the cot
ton loan fund will be administered
in the general supervision or central
committee of the individual members
OF the Federal reserve board, which
committee will, in turn, appoint a
committee to be known as the cotton
loan committee, ana which will have
actual management Of the fund.
"The plan in its new form is more
practical than anything heretofore
presented, and it is hoped the requis-
ite amount may be promptly sub
scribed that the plan may be put into
immediate operation.'