The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-16
RESERVE BOARD O.K.'S
+ COTTON POOL PLAN
But Members Believe It's Man
agemeDt by Them Would
Be Illegal.
SCHEME URGED ON WILSON

wAsnINGToN. Oct. 15-The Federal
Reserve Board discussed at great length
to-day the plan for a sib00000o gold
pool to assist the cotton producers Of the
South in holding their surplus crop
Tho board took up the plan item by
Item. The members are disposed to
favor the general scheme as the most
nearly scientific of any measure Of re-
lief yet suggested.
The iudispositon OF the board to place
its zeal OF approval on the pool scheme
IN not predc ted upon any hostile att
tuds and 1t was insisted that failure 10
agree at unCe upon the plan did not
indicate that ultimately a way may not
oe found to bring about the suggested
measure OF relief.
The stumbling block TO acceptance Of
the plan OF relief is based on the boards
feeling that il cannot leg lily amplify It's
functions bv taking on the trusteeship
Of tbs fund or the actual management
% the details OF the .ystem. 1t was
suggested that in view ~ this fact the
hoard might accept the responsibility in
an extra official capacity and assume
the direction OF the pool as an added duty,
but acting as group OF seven individuals
and not AS the Federal RescrN Board IT.
s5lf
The objection cited TO tn, vas that
to so constitute itself commission for
the handling OF the fund would carry an
noligatio 10 the individual membership
Of the board which might be an unwel-
come burden well ~ an obligation
which would be unacceptable to the
stricter corstruers OF the Federal re-
serve law.
Another point at issue is whether or not
any change IN tho plan under which the
pledge Of moneys To the pool was made
would necossitate the remaklng OF all the
pledges Of funds upon which the pool Is
based.
The Federal Reserve Board Is opposed
to every one 81 the cotton relief bills now
pending in Congress II is not dis
posed TO give any serious consideration
10 any OF these measures.
An Endorsement OF tho WADE pan
for relief Of The cotton industry was given
to President Wilson to-day by his boy
hood friend Henry W. Walters, chair
man of the executive committee or the
Atlantic COIs' Line Railroad Mr.. walters
told the President that with spot cot
ton selling around 6ia cents a pound
the South was facing "A very serious s!ti-
alton. but he though, that the pool would
afford the necessary measure OF RELIEF
provided the European taldngs or cotton
should reach the promised figure OF 2
600, 900 bales.
THE West is going to grow richer
out Of this war, but apparently the West
Of the strictest economy" said Mr. Wal
ters Railways Of the South and East
are already hard hi. They cannot get
money from abroad. and they must econ
omze. After two years believe the
whole country will begin to benefit"
Much Of the session Of the Senate to-
DAY was de-. o,ed to consideration OF the
amendment to the war tax bill offered
yesterday by senator Hoke Smith au-
thorzlng a bonl issue 10 take care OF the
surplu. 40; cotton crop 4 1914.
Senator McCumber os North Dakota
irritated the southern Senators by @
ing AN amendment 10 the cotton amend
ment directing the Secretary ot tho
Treasury to purchase wheat and othor
grains Whenever the price should fall be
low sl.lo "a bushel for wheat OF s.
cents "A bush for barley or 80 cents
busncl for oats. Senator Smput also pro-
posed an amendment directing purchas
Of copper
Senator BorIh brought to the attention
OF the Senate 4 Washington despatch
printed Ir THE SUN to-day giving tho
informal. thar the Presidru, would veto
The war revenue bill II It came to him
containing any Of the proposals 20 have
the Federal Government finance the cot
ton crop.
Senator Borah asked the Southern Sen.
ators to stat, whether they had any in
formation on this point, He ntims'ed
that il would be useless for Congress 10
proceed with the legislation in the face
Of a certain veto. Senator NardIman oi
Miss issirpi sharply resented the suEges
tion of veto.
IT have as much respect for Woodrow
Wilson, the President. as any other man
but I'm getting very tired OF suggest ns
which we hear IN Congress and on tn.
streets that no legislation can pass either
House Of Congress that does not have
the approval OF The President" said Mr..
Vardaman. Il am here to discharge my
duty under my oath Of office. lust as the
President must discharge his. and | do
not intend 20 he influenced in my action
by the threat OF a veto"
In spite OF Mr. Nardaman's statement
the Southern leaders In Congress have
been advised that President Wilson will
probably veto any OF the proposed cotton
legislation. Senator simmons brought
that word l. tho Senate and communi-
Gated II 10 his colleagues several days
ago.