The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-29
COTTON men ENDORSE
M'ADOO'S NOTE PLAN
Committee Also Recommends
Loans OH Tobacco and
Naval Stores.

WASHINGTON, Aug as-Tns sn.,,,,
committee recently appointed by secys'
tary Of the Treasury McAdoo 10 cons,as,
ways and means OF protecting the oo,,o.
crop made It's report tonight Tho COM
mittee was selected from a big confar.
ence Of business men interested in m.
production and sale OF cotton. On the com.
mittee were Royal A. Ferris S. T Mo,
gan. Lewis w. Parker. r. C. Rhett d
Cooper. II. w. Walters. Richard IL IA
monds, w. Il. Thompson, ]. o. Thomnso,
william Elliott, +. q. Ewing, - L. Ma
lory. u. ounby Jordan and Theodor. n
Price.
These are tho committees reconm.n.
dations. as contained in a letter Address.
to Secretary McAdoo
"G) That the committee entlrsly m.
prove Of and congratulate you upon IN.
announcement made by you vest, rdav
afternoon that notes secured by wa-s.
house receipts for cotton and tobacco anI
naval stores, and having not more than
four months TO run, will be accepted AZ
basis for the issue OF currt ncy In 81
members of the National Currency ass"'
Citations at 10 per cent of the face vain.
OF said notes.
"(2) That IL is the sense OF tho cox,
unttee that cotton. tobacco and na,,i
stores should be marketed as delibera,.I,.
as possible until they can again be az
ported In normal quantity. ana that whs,
properly conditioned should be ware
housed with responsible concerns. ina,
they should be protected against damage
and be properly insured against loss or
damage by fire.
"t3) That warehouse receipts Tor ,hes.
commodities are proper collateral D.,
loans by banks and should be ACCENTED
with such limitations Ms to margin In
spcction and valuation as oonserva,tv.
bankers may each in their discretion ,es
At TO impose.
"p That the average market valu, a,
middling cotton for tho past six v.ar,
has been In excess Of u cents per pound.
that the committee Is Informed that ,bs
cost Of producing cotton averages throuvh.
out the United States about o., cont.
pound that II is a rule of ecoror,l,,
that the production OF staple comuod,.
ties will decrease II they continue unsat.
able at less than the cost of productio,
plus reasonable profit that cotton doc,
not deteriorate when properly uarehoussl
and Is as good twenty years after II I,
picked as when II IL first gathered ,ha,
It can therefore be carried over un,r
the restoration OF normal business cor,
Htions enables the worlds consupptioo
| 10 absorb ". The committee is therefor.
Of the opinion that every effort shou,A
I've made to assist the producers 10 holI
, their cotton for a price that will mini.
mike their loss as far As po.sihI. un,n
such time as the channels OF foreign trads
shall he reopened. That loans upon co,.o,
| made upon n basis Of cents per pou,l
FOR mIddIing less such ua,.i, 49,,
lender shall consider necessary n,,,i e.o-,
reasonable protection 10 bapLsr. "a . ~,
GREATLY facilitate the ar,ncIa. ns WV
most important expor, cron ,n 81.
ont emergency
"5. That In suggesting cant. Z,
mound for middIing cot,or
for loans II ia M, ,be n,,rna.
committee 10 convey, tho ,dsa r.. a.,
figure represents in their nr,n,o, 81, Wy ~
.rinsic value OF cotton but 10, q,