The Dawson news. (Dawson, Ga.) 1889-current, 1914-09-08

! NdIuS VI SuCH IIC4SS "a NO+i--'N-
cial paper.
(c) No national bank shall be per-
mitted to issue circulating notes bas-
ed on commercial paper alone in ex-
cess of 80 per cent of its unimI aired
, capital and surplus.
| 4. The total amount of currency
| issuable to any bank, including its
circulating notes issued against Unit
ed States bonds, shall not be more
than 125 per cent of its unimpaired
capital and surplus.
). Each bank or currency associa
ton receiving currency must main
! tain in the treasury at Washington
redemption fund in gold of at least
per cent. The secretary of the
| treasury may at any time require
such additional deposits in gold as
in his Judgment may be sufficient for
the redemption of such notes.
Report of Conference Committee.
The Secretary of the Treasury,
Washington, D. C.-Sir: The COM
mittee appointed by you pursuant to
resolutions of the so-called cotton
conference held in Washington Aug.
"a and % beg TO report that the fol-
lowing report was adopted:
CD That the committee entirely
approve and congratulate you upon
the announcement made by you that
notes secured by warehouse receipts
for cotton and tobacco and naval
stores, and having not more than
four months to run, will be accepted
as a basis for the issue of curren-
cy to the members of the national
curreny associations at Is per cent
of the face value of said notes.
(2) That it is the sense of the COM
mittee that cotton, tobacco and ma
val stores should be marketed as de-
liberately as possible until they can
again be exported in normal quantity
and that when properly conditioned
should be warehoused with RESPONSE
Bile concerns; that they should be
protected against weather and be
properly insured against loss or dam
age by fire.
CD That warehouse receipts for
these commodities are proper collat-
eral for loans by banks, and should
be so accepted, with such limitations
as to margin, inspection, and valua-
tion as conservative bankers may
each in their discretion see fit to i'm
pose.
(4) That the average market value
of middling cotton for the past six
years has been in excess of II cents
per pound that the committee is in
formed that the cost of producing
cotton averages throughout the
United States about 91a cents a
pound; that it is the rule of econom-
les that the production of staple COM
modities will decrease if they contin-
ue unstable at less than the cost of
production plus a 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 there
fore be carried over until the restor-
alton of normal business conditions
enables the world S consumption to
absorb it. The committee is there
fore of the opinion that every effort
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 time as the chan
nels of foreign trade shall be reopen
ed; that loans upon cotton made up
on a basis of s cents per pound mid
ding, less such margin as the lender
shall consider necessary. will afford
reasonable protection to bankers and
will greatly facilitate the financing
of our most important export crop in
the present emergency.
90 That in suggesting cents per
pound for middling cotton as basis
for loans it is not the purpose of the
committee to convey the idea that
that figure represents in their opinion
the intrinsic value of cotton, but that
it is sufficient in their Judgment
to meet the requirements of the stu
alton and enable the farmer to mar
ket his cotton in an orderly and de-
liberate manner.
60 That in the case OF tobacco
and naval stores the committee is in
formed that when these commodities
are properly conditioned, stored and
insured they are practically nonper-
ishable, and that the committee
therefore recommends that ware
house receipts for tobacco and naval
stores be accepted as security for
loans on a basis that has due refer
ence to their market value.
ca Your committee recommends
that notes having not longer than
four months to run, when secured by