The Birmingham age-herald., 1914-08-29
M'ADOO'S COTTON
 PLANS APPROVED
 BY CONFERENCE
tcontinued from Page One,

commodities are proper collateral for
 loans by banks, and should be so ac- cepted with such limitation as to mar
 gin, inspection and valuation as con-
 servative bankers may each in their dis cretion see fit to impose.
 "A That the average market value of
 middling cotton for the past six years has been in excess of F cents per pound,
 that the committee is informed that the
 cost of producing cotton averages through
 out the United States about 91a cents a pound, that it is a rule of economy
 and that the production of staple com
 modities will decrease if they continue
 unstable at less than the cost of pro- duction plus reasonable profit. That cotton does not deteriorate when properly
 warehoused, and is as good 20 years after
 it is picked as when it is first gathered; ; that it can, therefore, be carried over until the restoration of normal business conditions enables the worlds consump- ton to absorb it. The committee is therefore, of the opinion that every ef- fort should be made to assist the pro- ducers to hold their cotton for a price that will minimize their loss as far as possible until such times as the chan
 nels of foreign trade shall be opened. That loans upon cotton made upon a ba- sis of cents per pound for middling, less such margin the lender shall con- sider necessary, will afford reasonable protection to bankers and will greatly facilitate the financing of our most inn portant crop in the present emergency. Not Intrinsic Value
 "5. That in suggesting cents per pound | for middling cotton as a basis for loans. I it is not the purpose of the committee to convey the idea that that figure repre- I sents in their opinion the intrinsic value of cotton. but that it is sufficient in their judgment to meet the requirements of the situation and enable the farmer to market his cotton in an orderly and de- liberate manner"
 e. That in case of tobacco and naval stores the committee is informed that when these commodities are properly con ditioned. stored and insured, they are practically nonperishable and that the committee therefore recommends that warehouse receipts for tobacco and naval stores be accepted security for loans on basis that has due reference to their | market value less such allowance as the lenders shall consider reasonable in view of the present suspension of the export demand.
 '7. Your committee recommends that notes having not longer than four months to run, when secured by proper ware- !, house receipts for the aforesaid commodi- ties, properly insured. be accepted for re- | discount by the federal reserve banks, when organized. and that they also be approved by the national currency asso- ciation as security for additional circula- tion to the national banks under the pro- visions of the Aldrich-Vreeland act as | amended by the federal reserve act. IS. That a subcommittee be appointed by you for the purpose of conferring with the treasury department and the banking interests with q view of carrying
 into effect the recommcn aations herein | made"
 l The report was signed by a majority | of the committee, including Royal A 1 Ferris. s. T. Morgan, Lewis w. Parker. R. G. Rhett, D. Y. Cooper, H. Walters. 1 Richard H. Edmonds, w. B. Thompson. J. O. Thompson. William Elliott, F. G.
 Ewing, B. l.. Mallory, G. Gunby Jordan
 and Theodore H. Price.