New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-15
Sl5O,OOO,OOO LOAN
ON COTTON ASSURED
Federal Reserve Board to
Manage Fund, Bankers
Agree on Here.
S5O,OOO,OO0 TO BE
SHARE FOR NEW YORK
Caring for Surplus of South'S
Staple Crop Recognized
as National Problem.

49,
Festus J. Wade. president Of the
Mercantile Trust Company Of St. Louis
and also Of the St. Louis Clearing
House Association. issued the follow
ing statement last night at the Wal
rf-Astoria:
"After the continuous conferences OF
the last few days between the st. Louis
committee and the New York bankers
relative TO the raising Of the cotton
loan fund of s15OOOO,OOO definite
conclusion was arrived at to-day be-
tween the st. Louis committee and the
New York bankers, and by the action
NJ the New York bankers it may be
safely assumed that the fund VIII De
undoubtedly raised within the next lew
days.
.;The difficulty encountered was 70
de+erpine how the syndicate could De
managed and money loaned at the least
nossible expense TO the borrower, and
after many conferences and much tele-
phonic communication between WASH
inpton and New York it was finally
concluded TO turn over the entire tund
TO the Federal Reserve Board at WASH.
ington. which would act as manager OF
same and direct the loanlng OF tne
fund. The outline Of the plan as agreed
upon is as follows;
"Organize Sl50,O0000o cotton loan
fund throughout the United States.
which fund shall be turned over TO ana
managed by the Federal Reserve Board
at Washington and loaned to the Ma
tional Currency associations or 10 the
Federal Reserve banks.
"All loans to be made payable on or
before one year, at the option Of the
borrower, with the right 10 the Fed
oral Reserve Board to extend any or
ali such loans made for two periods OF
six months each.
Interest on such loans to be at the
rate Of 6 per cent. All loans to be
made at not to exceed six cents
pound. middling basis, to be secured
by approved warehouse receipts Tor
cotton properly insured, the fund TO
be called for by the Federal Reserve
Board in such iustalments as may be
necessary. 60,
New York financial institutions will
subscribe $4,000 600 under the above
conditions toward such fund, provided
the balance of the country subscrloes
not less than Sl00,000,000.
"The details to be worked out by
committee 70 be appointed by the Fed
eral Reserve Board which will unques-
tionably have the support Of every part
Of the country
1.-THE task put upon the Federal Re
serve Board, while Onerous, was
readily accepted by Secretary Nc
Adoo. who recognized the gravity Of
the situation. The necessity for action,
as well as the practicability of the plan
through his guiding influence, has
made fund of s150.000,00O available
20 the cotton growers Of the South at
a very moderate rate Of interest.
The committee had Geographic ad-
vices from Arkansas. Georgia,
Louisiana, Mississippi, South Carolina,
Oklahoma. Texas and Tennessee that
each of these states would unQuestlon-
ably contribute its prOpOrtlOnate part
Of $50, 100000, which was allotted to the
South as its share of the fund.
II is expected that all Of the Eastern,
Northern and Western parts of the
country will be asked TO contribute
now that New York has spoken, par
ticularly so as the management Of the
fund will be placed in charge of the
r GutlAl ItNtlFE dual az W ash III > tpAif
the President. Secretary McAdOO and
the Federal Reserve Board having al
ready approved the plah.
II is generally understood that all
departments of the government will be
put behind the surplus cotton crop TO
rapidly increase It's export and also
TO develop the sale Of the product to
the New England and Southern cotton
manufacturers of the nation.
Banks in this city, it was learned yes
terday, would support the Sl50,000,O0O
cotton pool proposed by Festus j.
Wade, of st. Louis, but only on condl-
ton that the plan be substantially
modified. They are not enthusiastic
about it., nor about any scheme for
"fooling with the laws Of supply and
demand" as one Of them said, but so
long as the Federal Reserve Board has
given its approval in principle and
their patriotism is held to be at stake
they are cOnsenting TO lend financial
aid to the distressed Southern planters.
Many Of the bankers seen yesterday
said that il was by no means the prov
ince of their institutions to carry the
load for the Southern planters. They
were willing to do their. share i'm help
ing the planters 10 market their crops,
but not to hold them for indefinite o.
long periods. They SAID, too, that New
York would have to do more than 4
fair share of the work. because good
many of the Southern banks which had
pledged their aid to the plan would
merely borrow the money here, and the
same would be true of "A number of i'm
portant business houses, which would
be selling their paper here TO raise the
funds for their contribution. Gen
orally the bankers were willing to help
as they could if the planters would re
gard the cotton pool as something to
protect them in an emergency rather
than an aid to carrying them over until