The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1914-08-26
CURRENCY
is is ASSURED
FOR CROPS
Committee is Working on Plan for
Handling Cotton Warehouse
Receipts to Be Basis
McAdoo Sp.aks

Washington, Aug. 26.-Assured tha
all the currency necessary to finance
the country's cotton and other staple
crops will be furnished by national
banks on warehouse certificates, Z
committee OF eighteen representative
planters, manufacturers. dealers and
bankers and government officials
Tuesday night began working out
plans for actually bringing this money
into circulation. Steps toward pro
yiding safe and adequate warehouse
facilities throughout the producing
centers alveady are under way and
leaders in the movement are confident
that in few weeks the emergency
created by the European war win have
been met.
The committee was appointed after
conference at the treasury depart
ment, Tuesday and to cooperate with
its Secretary McAdoo designated w
7 q. Harding Of the federal reserve
board and G. j. Brand, chief OF the
office OF markets and rural organiza-
tions.
Secretary McAdoo said that national
banks OF the states affected by cotton
and tobacco could obtain a maximum
OF sl7O,O00,O0O emergency currency
under the Aldrich-vreeland act, a sum
sufficient he said. to handle the sit
uation. The nationals Of Texas alone
can obtain s60,0OOOOO. AS pointed
out by the secretary, there is no neces-
sity or the growing hysteria. but cool
consideration was demanded.
"We probably viii have to carry
over 100000 bales OF the cotton
crop" explained the secretary. III
plan can be devised to properly han
die the necessary portion Of the crop.
ii will be small matter to care for
the surplus referred to. The nation
can not sustain a loss on the crop
without the entire country suffering
in the year to follow The present
situation viii have a material bearing.
believe, on the cotton acreage for
next year
Il am satisfied the government is
in position to aid the banks through
the federal reserve system and the
emergency currency act.
Amounts may be secured by south
ern banks sufficient to finance the
100000 bales on the basis of $40
per bale"
The secretary indicated that ware
house receipts issued on cotton, to-
bacco and other staple products would
be given a satisfactory and definite
status by ruling of the department. He
said that under authority the secretary
POSSESSED, he was inclined to adopt
for additional currency notes secured
by authenticated warehouse receipts
issued on cotton properly warehoused
and insured He said that II he
thought best be would allow such
notes to run to 70 per cent OF the
total, the remaining 80 per cent to be
commercial paper. but he made i'll
plain the warehousing would have to
be under proper regulation and man
agement The financial feature of the
simation, the secretary thought easily
could be taken care Of and along ra-
tional lines, and called attention Of
thee onference that some means ought
TO be devised to prevent cotton being
thrown upon the market to the extent
OF running the price.
Much of the conference time was
devoted to the warehouse features.
the chief development being that an
expensive structure was not necessary.
AS pointed out by Fuller =, Galloway
II t...II Z