The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1914-10-28
To BE LOANED AT 6 Per CENT
Based on a Loan Value of Six Cents
Per Pound With Warehouse Re-
cept as ColIateraI-Loans May be
Extended.

Washington, oct. 27.-The COM
pleted plan for the S135,000,000 loau
fund to take care of the surplus cot
ton crop differs only in detail from
the previous announcements of the
federal reserve board.
The boards outline of the plan was
made public tonight at the same time
that it was sent to clearing house
associations throughout the country.
Responses are expected to reach the
BOARD before the end of the week. ami
officials were hopeful tonight that the
plan would meet with sufficient bank
ing support to make its adoption GER
tain.
The outline differs only in detail
from the previous announcements OF
the board. The fund, it shows, is %
be administered under the direction
of committee to be known as the
central committee to be composed Of
the indiviual members of the reserve
board. Actual administration of the
fund will be under a cotton loan
committee" to consist of w. p. q.
Harding, member of the board. chair
man. Paul NJ. Warburn of the board
Cole E. NJ. House, Austin. Texas; A.
H.sWiqgin, New York; James S. Alex
ander, New York: James b. Forgal,
Chicago; Festus J. Wade, St. Louis;
Levi L. Rue, Philadelphia, and VIII
liam A. CASTOR. Boston.
There are to be two classes of sub
scriptions to the fund The first
known as "A' is to aggregate S100,-
900 600 and to be raised among bank
ers and other persons or corporations
and firms in non-cotton producing
states. c ass ''B" subscriptions are
to be made by banks or bankers in
cotton producing states.
Applications FOR loans must be sub
mitted to state and local committees
which are required TO approve them
and made through banks or bankers,
who are required to accompany ap-
plications with subscriptions to class
"B" certificates amounting to 25 per
cent of the loan required. This prac-
tically means that the non-cotton pro
ducing states participating will loan
rs per cent and the cotton states 25.
Every subscriber will receive certifl-
Gates of purchase which shall be
transferable on the committees
books and bear 6 per cent interest.
Loans will be made on notes at 6
per cent with warehouse receipts For
cotton as collateral on the basis OF
six cents per pound for midding. All
expenses for warehouse and insurance
charges must be borne by the borrow
er. A guarantee fund is to be created
by deduction of three per cent from
the face value of all loans which will
be used also to provide funds for the
payment of expenses of administra
tion, estimated not to exceed is of
one per cent of the fund.
All applications for loans must be
made before February l, 1915. The
'oans will have a maturity OF one year
with a promise of renewal for six
months on approval of tne central
committee.
In the repayment of subscribers 20
the fund, the elias "A" certificates
will be taken care of in a proportion
ately larger degree until the out
standing amounts of each class be-
come equal.
The boards statement follows:
at is proposed to create in the
manner hereinafter provided a fuad
of approximately s135,000000 to be
known as the cotton loan fund and
to be used for the purposes herein
stated. Subscribers to this fund shall
be divided into two classes to be
designated respectively as class "A
and class b subscribers. Glass "A
subscribers snail consist of banks and
other corporations. firms or individu-
ais located or residing in other than
the cotton producing states of Ala
bama, Arkansas, Florida, Georgia,
ouisiana. Mississippi, North Caro-
lima. Oklahoma, South Carolina, Texas
and Tennessee.
"All class A subscriptions shall be
contingent upon the receipt OF sub
scriptions Of that class aggregating
500, 100000 Class B' subscriptions