Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-10-30
TRYING TO HELP COTTON
Secretary McAdoo Undertakes Big
Task in Business Like WAY.

Task in Business-Like Way.
Washington, October 29.-Secretary
McAdoo tonight made public letter
he has sent to clearing house chair
men throughout the country urging
support of the s135.000, 900 cotton loan
fund. He said the cotton situation
presented a problem "of the most
urgent character" and declared his
conviction that prompt subscription
of the loan fund would "be productive
of immensely beneficial results" The
contemplated acceptance Of subscrip-
ers' certificates as a basis for emer-
gency currency issues, he added,
should greatly facilitate the banks in
making and taking care of their sub
scription."
More replies favorable to the loan
fund plan reached the Federal reserve
board today, but members of the board
pointed out that consideration by the
Tearing house associations and then
by individual banks might delay ac-
ton in the matter for several days.
secretary McAdoos letter to the
clearing house chairmen follows:
"The cotton situation in the south
presents a problem of the most urg-
ent character. 1t is imperative that
some intelligent financial measures
shall be Immediately adopted to re-
lieve that situation. The problem is
not local, but national, because Sc
rious hurt to the south affects the en-
tire country. To help the south in
this emergency must appeal, there
fore, not only to our better instincts,
but also to our material interests.
Governor Hamlin, of the Federal re-
serve board, has sent you letter to-
day, together with a plan which the
board has approved for raising fund
of $l35, 100000 to be loaned on cotton.
1t is our firm belief that the prompt
subscription of this fund and its use
as proposed in the plan will be pro-
duCtlve of immensely beneficial re-
suits
Il wish earnestly to urge upon you
the importance of the banks in your
city and in your Federal reserve dis
trict promptly subscribing the amount
allotted TO you. New York has already
led off with a $50,000,000 subscrip-
ton and l sincerely hope that there
may be no doubt whatever about the
raising of the remaining SS5,OOO,OOO
in other leading financial cities of the
country. ! am sure that we may con-
idently count upon the loyal and pa
triotic support of the bankers of your
city in this emergency. The Federal
reserve board itself, Notwithstanding
the onerous duties which now devolye
upon it in the organization OF the
Federal reserve system, has neverthe-
less, consented to constitute itself a
voluntary committee for the purpose
of supervising the administration of
the proposed fund, because Of the Sc
riousness Of the emergency and the
necessity for unselfish service on the
part of every citizen who wants earn
estly to help his country.
I'm order to assist the banks which
may subscribe TO this fund. ! 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- -Vreeland act, as
amended, accept the class "A certifi-
curities' at 75 per cent of their face
value, as basis for issues OF so-call-
ed emergency currency when pre-
sented to me through National curren-
Cy associations. This should greatly
facilitate the banks in making and
taking care of their subscriptions.
will you be good enough to tele.
graph me on receipt of this letter II
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 a basis for the issue
of emergency currency.