The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-10-28
Class "A" Subscriptions From
MISUNDERSTANDING States
to Aggregate $l00.0OO.0oO
New York City To
Put Up One-Half
Plan Enables Cotton Owners
To Borrow Six Cents a Pound
On Middling Cotton at Six
Per Cent and Storage Costs

Washington. Oct. 27.--The Federal
Reserve Board made public today a
detailed memorandum outlining the
Wade plan for $4,000. 900 cotton
pool, which was approved by the
board October "a.
The memorandum, which was sub
mitted to the Federal Reserve Board
by bankers committee from New
York and st. Louis. sets forth the
conditions under which subscriptions
are to be made to the pool and under
which loans shall he made to banks In
the cotton producing States. Ii says:
The cotton pool plan proposes TO
create a fund OF approximately $685.
100000. TO be known as the cotton
loan fund" Subscribers to this fund
shall be divided into two classes. to
be designated respectively as Class A
and Glass e subscribers Glass A sub
scribers shall consist Of banks or other
corporations. firm or individuals, To-
Gated or residing in other than the
cotton production States OF Alabama,
Arkansas, Florida. Geargia. Louisiana,
Mississippi, North Carolina. Okla
homa, South Carolina Texas and Ten
uessee.
All Glass A subscriptions shall be
contingent upon the receipt of sub
scriptions OF that class aggregat.ng
500. 600. Glass Il subscriptions
shall be made by banks or bankers
located or residing In the cotton pro-
ducing States above mentioned.
Each subscriber shall upon the
payment In whole or In part of the
amount subscribed for, receive a par
ticipation transferable book of the
committee showing ON it's face the
class of subscription represented there
by. and specifying the terms under
which the owner will be entitled TO
share In the distribution of the moneys
realized from the loans made from the
fund created.
Bear Intescst IT Six Per Gent.
All Class A and Class b certificates
ahAil bear interest al the rate of six
per cent per annum. payable quarter
-.
The cotton loan fund will be ad-
ministered under the direction Of a
committee TO be known as the central
committee, and to be composed Of the
individual members of the Federal Re-
serve Board. The central committee
ea&ll appoint a committee for the gen
eral administration of the fund. to be
known as the cotton loan committee,
and shall delegate to such committee
such powers as may be necessary 10
properly carry out the purpose of this
plan.
The cotton loan committee shall In
turn appoint committees in each OF
the cotton producing States hereinhe-
fore named.
The banks OF the Sity OF New York
have pledged thems YES 10 subscribe
to 1bo.000.000 of thF s1Ga.oo0.oo0 OF
Class A certificates, provided the re-
manning $5o.oo0.ooo shall be raised
within a reasonable time under tho
a~~1~ "a ~ N central c0Y1FDiff
by banks in non-cotton producing
states.
All loans made from the fund Gre
ated shall bear interest at the rate Of
six per cent per annum.
All loans shall be evidenced by
notes In form approved by the cotton
loan committee and shall be secured
by cotton on the basis OF six cents per
pound fer middling, in addition to the
guarantee fund hereinafter described.
A. evidence Of the security offered
each note rendered with an applica-
ton for loan must be accompanied
BY receipts OF approved warehouses
and by evidence OF proper insurance.
All expenses. such az warehouse
charges and insurance premiums shall
be borne by the borrower.
IA addition to the security herein
Oe1cre specified. every applicant grant
ID loan from the fund shall pay to
the cotton loan committee a sum
equal to threo per cent of the face
amount OF tho loan granted and APP
piicant shall authorize the Gotten loan
committee to deduct or withhold this
amount. This amount from the pro-
ceeds OF such loan. together with ALI
interest earned from the investment
thereof shall constitute Il mutual bor-
rowers' guarantee fund
As moneys become available for re-
payment to the subscriber they will
s. applied against both Glasses A ana
b certificates.