The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-08-29
ACCEPT NOTES SECURED
BY WAREHOUSE RECEIPTS
Mcidoo Will Take Them at 80 Per
Cent of Face Value rs Basis
for Currency.
CoMITTEE APPROVES PLAN
Recommends That Cotton, Tobacco
and Naval Stores BE Marketed as
Deliberately as Possible Until
There Is Normal Expectation Again

WASHINGTON, August 2s.-Secretary
McAdoos plan TO accept AS basis for
currency notes secured by warehouse
receipts for cotton. tobacco and naval
stores mt - per cent of their face value,
was approved tonight in a report by
the special committee appointed by the
conference of representative planters,
bankers, manufacturers and dealers
held here August 2425.
The committee recommended that
every effort he made TO assist pro-
ducers in holding their cotton for a
price that will minimize their losses
until the channels OF fotcien trade are
reopencd. Eight cents a pound was
suggested fair basis for loans on
cotton.
COMMITTEE APPROVES
SECRETARY McADOO's PLAN
The report. which was submitted 10
Secretary McAdoo. follows:
y. That the committee entirely ap-
prove of and congratulate YOU upon the
announcement made by YOU Yesterday '
afternoon. that notes secured by ware
house receipts for cotton and tobacco
and naval stores. and having not more
than four months TO rum. will he
adopted as basis for the issue of cur
rency 10 the members OF the National
Currency Associations at 80 per cent
OF the face value Of said notes.
"2. That il is the sense Of the com
mittee that cotton, tobacco and naval
stores should be marketed as delib-
eratcly as possible until they can again
be exported in normal quantity. and
that when properly conditioned should
he warehoused with responsible con
Germs, that they should be protected
against weather damage. and he prop
erly insured against loss or damage by
fire
80 That warehouse receipts for these
commodities are proper collateral Tor
loans by banks. and should be so ac-
cepted with such limitations as TO mar
gin. protection and valuation as con-
scrVatiVc bankers may in their dis
cretion See fit to impose.
"a. That the average market value
Of middlinc cotton for the past six
wears has been in excess of - cents
per pound: that the committee is in
formed that the cost Of producing cot :
ton averages throughout the United
states about al-2 cents a pound: that
ii Is a rule OF economies that the pro-
huction Of staple commodities viii de
crease if they continue unsalabie at
less than the cost of production. plus
Il reasonable profit: that cotton does
not deteriorate when properly ware
housed. and is as good twenty years
after ii is picked as when il is first
gathered: that il can. therefore, be car
red over until The restoration of
normal business conditions enables the
worlds consumption TO absorb ii. The
committee is. therefore. of the opinion
that every effort should be made TO
assist the producers TO hold their cot
ton for price that viii minimize their
loss as far as possible. until such time
as the channels of foreign trade shall
hc rcopcncd That loans upon cotton.
made upon Il basis Of cents per
pound for m;,idiiug. less such margin
as the lender shall consider necessary.
Will afford reasonable protection TO
bankers, and will greatly facilitate the
financing Of our most important export
crop III the present emergency.
-. That in suggesting cents per
pound for middlne coEon as Il basis
for loans, IL is not the purpose OF the
committee 10 convert the idea that that
figure represents in their opinion the
intrinsic value of cotton. but that 1t Is
sufficient in their Judgment {" mcot
the requirements. nf tho situation and
CONTINUED on Second Page)