The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-08-29
AUTHORIZED
COTTON LOANS
SECRETARY MeAD0Q Ap-
PROVES PLANS OF SPECIAL.
COMMITTEE
SECURITY is FIXED
Upon Proper Warehouse Receipts
Money Will Be Loaned on a
Basis of Eight Cents

Washington. Aug. 28.-Secretary
McAdoo's plan to accept a basis for
currency, notes secured by warehouse
| receipts for cotton, tobacco and ma
val stores at 75 per cent of their face
value was approved tonight in the re-
| port by the special committee appoint
ed by the conference OF representative
planters. bankers, manufacturers and
| dealers held here August 24-25.
The committee recommended that
every effort be made to asrist produc-
crs In holding their cotton for q price
| that will minimize their los.es until
the channels of foreign trade are re-
opened. Eight cent pound WIS sug-
gested as fair price for loans on cot
ton.
The report. which was submitted 10
Secretary ldCAcoo follows:
That the committees entirely al
prove of and congratulate you upon
the announcement made by you yes
terday afternoon thet notes securet:
Dy warehouse receipts for cotton and
| tobacco and naval stores and having
| not more than four months to run,
VIII be accepted az a basis Tor the is
sue OF currency to the members of
the national currency associations at
b per cent OF the face value of said
note.
"2 That it is the sense of the com
mittee that cotton, tobacco and naval
stores should be marketed as delib-
erately as possible until they can
again be exported in normal quantity
aud that when properly conditioned,
should be warehoused with RESPONSE
bic concerns, that they should be pro-
tected against weather damage and be
properly insured against loss OF dam
age by fire. 80. ,, -
"3 That warehouse receipts for
these conditions are proper collateral
| for loans BY l,as.ls, ana should BE 40
accepted with such limitations as to
margin, inspection and valuation as
conservative bankers may each In
their discretion see fit to impose.
That the average market value
OF middlfng cotton for the past six
years has boen In excess of 70 cisits
per pound, that the committee is in
formed that the cost of producing
cotton averages throuhout the United
States about 8 1-2 cents q pound. that
1t Is a rule of economics that the nro-
duction OF staple cotton will decrease
IL IT continues MnasiakIa =. Res. ths.
the cost OF production plus a REASON
able profit. That Gotten does NOT de-
teriorate when propely warehoused.
and Is as good twenty years t.fter IL
Is Picked a5 wien titt N nfntt Eattihcreti:
that 1t can therefore. be carried over
until the restoration Of normal busi-
ness conditions enables the worlds
consumption to absorb It.. The COM
mfttee ic therefore is OF the opinion
that every effort should be made to
assist the producers to hold their cot
a. ~ hot
loss as Tar aS possible, until ouch. n
time as tfe trade OF foreign channels
shall be opened. The loans upop cut
ton made upon basis OF 8 cents per
pound for middling, iese such margin
as the lender may consider necessary.
viii anord reasonable protection to
bankers and will faciIitate the finan-
cling or our most important export
crop In the present emergency.
%. That In suggesting cents a
pound Tor middling cotton as q basis
Tor loans, 1t Is not the purpose of the
committe to convey the idea that the
figure represents in their opinion the
intrinsic value OF cotton, but that A. IN
sufficient In their Judgment to meet
the rcquiremssts of the sitaa.tfo - and
eIiah:e the farmer 30 assE hin = ss,t-
ton In Quiet aii6 orderly msnfiep.
e. That IN case OF tobacco and
naval stores the conan .ttee is fnforrn-
ed that when thase cnnnn, nlitt ie.. ~.
properly conditioned st,red and IN
sured, they are practically non-periah-
able. and that tbs committee there
fore recommends that wasehoase re-
;ceipts for tobacco ansa naval stores he
accepted as SECURITIES for loans OF, n
basis that has due reference to their
market value less such allowance as
the lenders shall consider rsgsbnabIe
In View of the present suspension of
the export demand !. IS
I; '7 Your committee recommends
that notes not having longer than a
months 60 run. when secured by prop
er warehouse receipts for the afoi:e-
eiad commodities, properly insp.ed.
be accepted for rediscornt by the Fed
erai reserve banks, when orgenized.
and that they also be approved by sils.
National Currency Association and Sc.
curity for additional circulation % The
national banks under the provisfSns
OF the AldricheV 5elRnd act, ias nuss,,s
ded by the s'edefal reserve aek
That g suE COMMITTEES be AN.
pointed Tor tue purpose cGsconferrinR
with ting tTeabHfy department and the
banking interests with d view Of cars
fying into effect The Recommendation
herein made ~ g s.
The report was signesi by 4 majority
Il