The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-30
PROMPT SUPPORT
OF COTTON FUND
URGEDBY M ADOO
Secretary of Treasury Says
Problem Is "Of Most Ur-
gent Character"
WRITES TO cHAIRMEN
OF CLEARING HOUSES
Imperative That Intelligent Fl
nancial Measures Shall Be
Immediately Adopted.
RESERVE BOARD WILL HELP
RESERVE BOARD WILL HELP
Approves Plan for Raising S135,-
100000 to Be Loaned
TO South.

WASHINGTON. October 29-secre-
tary McAdoo tonight made public a
letter he has sent 10 clearing house
chairmen throughout the country. urg-
ing support OF the s135.OO0.OO0 cotton
loan fund. He said the cotton situa-
ton presented a problem 'oG the most
urgent character" and disclosed his
conviction that prompt subscription OF
the loan fund would be productive of
immensely beneficial results" The
contemplated acceptance Of subscribers
certificates. as basis for emergency
currency Issued, he added, should
greatly facilitate the banks In making
ana taking care of their subscriptions"
More replies favorable to the loan
fund plan reached the Federal Reserve
Board TO day, but members OF the boa rd
pointed out that liquidation by clear
Ing -hauses and then By individual
banks might not get any final action In
the matter for rcvcral days.
Secretary McAdoo's letter to clear
ing-house chairmen follows:
The cotton situation in The South
presents problem OF the most urgent
character. II is imperative that some
inteIigen; financial measures shall he
immediately adopted to relieve that
situation The problem Is not local
but national. because Il serious hurt to
the south affects the entire country.
TO help the South In this emergency
must appeal, therefore, not ONLY to our
pctter Instincts, but also to our ma
tertal interests. Governor IIamIin. Of
the Federal Reserve Board, has sen.
you IL letter to-day. together with n
pian, which the boar has approved
for raising n fund of Sla5, 100000 to be
loaned on cotton. II Is our firm belief
that the prompt subscription OF this
iund ana It's use as proposed In the
plan VIII be productive Of Immensely
beneficial results.
IMPORTANCE; OF PROMPT
ACTION Is URGED
earnestly urge upon You the i'm
portance Of the banks In your city and
In your Federal reserve district prompt
~ subscribing the amount allotted to
you; New York has already led OF
With $4,000. 900 subscription. and /
sincerely hope that there may be no
doubt whatever about the ralsing OF
the remaining $4,000. 900 In the other
leading financial cities of the country.
count upon the loyal and patriotic sup
port of the bankers OF your ethyl in this
emergency. The Federal Reserve
Board itself. Notwithstanding the
onerous duties which now devolve upon
1t In the organization of the Federal
reserve system. has nevertheless con-
sented to constitute itself voluntary
committee for the purpose OF super
vising the administration of the pro-
posed fund because of the seriousness
OF the emergency and the necessity for
unselfsh service Oh the part of every
citizen who wants earnestly to help
his country.
I'm order to assist the banks which
may subscribe to this fund. l desire TO
say now that in the exercise OF the
power and discretion vested In me by
law. shall. upon compliance by the
banks with the terms and provisions
OF the Aldrich- NrecIand act, as amend
ed. accept the class "A certificates re-
ferred TO In this plan as securities at
40 per cent OF their face value as a
basis for issues of so-cal!ed emergency
currency when presented to me through
national currency associations. This
should greatly facil; ate the banks in
making and taking care of their sub
Z scriptions.
will you be good enough to tele-
graph me on receipt of this letter If
we may count upon your co-opera-
tion?"
The secretary said that in order to
help the Southern banks which may
subscribe for class 'B" certificates, he
had determined to accept them also
as Securities as basis for the issue
OF emergency currency