The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1914-10-21
CONFERENCES ON COTTON
QUESTION HELD
Indebtedness of Nation Depends
on Cotton Situation.
Washington, Oct. 19.-Sir George

Washington, Oct. 19.-Sir George
Paish, special adviser to the Englisl
chancellor of the eXchquer; Basil B
Blackett, of the English treasury
Secretary McAdoo and the federal re.
serve board today began a series o1
conferences here which are expected
to have an important affect on fnan-
cial conditions in Great Britain and
the United States. Restoration of nor
NAL conditions in foreign exchange
dealings between the two countries is
the object of the meetings and they
probably will have a direct affect on
the disposition of the South's cotton
crop.
It became known tonight that off
cials of the American government feel
keenly that cotton is the crux of a
situation which has many ramifica-
tions and that on the success of plans
to care for the surplus and on the will
lingness of manufacturers to buy cot
ton depends the value of Sir Georges
visit.
1t is probable that before Sir George
returns to England the question of a
reopening of the London. and New
York cotton exchanges viii je consid
cred. 1t was predicted here tonight
that the London Exchange wvuld re-
open shortly, with the British gov
ernment urging that London brokers
do not call loans Immediately. If the
London market is not greatly affect
ed its resumption of business may be
followed by the reopening of the New
York exchange.
So much depends on the cotton
problem that there probably will be
no further conference until COM
mittee of the board, which is handi-
ing the proposed $15O,OOO,OOO cotton
loan fund plan, has found a satisfac-
tory solution. The committee, Secre-
tary McAdoo, Paul NJ. Warburg and
W..P. G. Harding, returned TO-DAY
from New York, where it had been at
work since Saturday in an effort 70
convince New York bankers OF the
feasibility and soundness of plans for
the fund.
The New York bankers promlsen
n MT I'D one third of the loan FUND
GEE COPY - CANT READ THIS!
covered could not legally be met Inc
reserve board members proposed dill
ferent conditions and as further IN
ducement offered to let the northern
section of the United States put up
three dollars to every one put up D.!
Southern bankers with the understand
;ne that the northern banks Woulo
, have a. prior lien for their money
Under this tentative plan Southern
hanks would have actual management
of the fund, the whole, however, 10
he under supervision of the reserve
,oo1d Other conditions as to interest,"
rate and price of cotton were SAID 10
be left unchanged.
This counter-plan has not peen pass
ed upon finally but every opportunity
will he taken to expedite its consloer'
+ion 81 that the board may begin dis
crssion of international problems WIN
Sir George and Mr.. Blackett.
The cotton crop is of first import
once in these conferences because on
# the United States has relied IN past
wears to cancel the larger part Oh n'
foreign Indebtedness.
Sir George is known to hold tha'
English manufacturers do not WISH
to buy cotton now unless they are
satisfied it has reached the bottom
price. American manufacturers, ac-
cording to information available at
the treasury department, apparently
feel the same way and little cotton is
being sold. With the S15O,OOO,OOO
loan fund in operation it is argued that
millions of bales. will be taken out of
this market and a direct and stimulat-
ing effect will be felt both here and in
ENGLAND. With cotton moving again
across the Atlantic the Indebtedness
of the United States to England Woul7
be decreased rapidly and materlaiiy
and conditions here would Improve
in consequence.