The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1914-09-01
AUTHORIZED
COTTON LOANS
SECRETARY McADOO AP.
PROVES PLANS OF SPECIAL
COMMITTEE
SECURITY is FIXED
Upon Proper Warehouse Receipts
Money Will Be Loaned on a
H. Basis of Eight Cents

i. Basis of Eight Cents
Washington. Aug. 90. Secretary
McAdOO's plan to. accept a. basis for
! currency. notes secured by warehouse
receipts for cotton. tobacco and ma
val stores at rs per cent OF their face
value was approved tonight in the re-
port by the special committee appoint
ed by the conference Of representative
planters, bankers, manufacturers and
dealers held here August 1926
The committee recommended that
every effort be made to assist produc-
ers IN holding their cotton for a price
that will minimize their losses until
the channels of foreign trade are re-
opened. Eight cent pound was sug-
gested as fair price for loans on cot
ton.
The report, which was submitted 10
Secretary AiIAcoo follows:
THAT the committees entirely all
prove Of and congratulate you upan
the announcement made by you yes
,, terday afternoon that notes secured
by warehouse receipts for cotton und
tobacco and naval stores and having
not more than four months to run,
VIII OC hNNCptC0 dE al DdSt6 tOE Tie Is
sue of currency to the members OF
the national currency associations at
D per cent of tho face value of said
note.
"2s That 1t is the sense of Tie COM
| mjttee that cotton: tobacco anu naval
stores should be marketed as DELHI
crately as possible until they can
again be exported in normal quantity
| and that whcn properly conditioned
! should be warehoused with RESPONSE
BILE concerns, that thoy should be pro-
| tected against weather damage and be
properly insured against locs or dam
age by fire. i,,;
IS That warehouse receipts for
these conditions are. proper collateral
/ for loans by banlsr, and should be SO
accepted with such Limitations as to
margin, inspection and valuation as
conservative bankers may each in
their discretion see flt to impose.
Ihat the. average market value
OF middling cotton Tor the past six
years has been In excess OF 12 ctllts
per pound that itAea Committee is in
!. formed that. the cost Of producing
cotton averages thrpahout the United
States about 9-I-2 cents a;porna. ! ths.
lit ,i5 q rule Of economics that the pro.
kduetion Of staple COTTON will decrease,
fif II continues upBalable ar less than
4, the cost Of productions plus reason
able, profit. That cotton does not de-
teriorafe when nrnne.y warehouseii,
, and iss as good twenty years after il
, Is picked as when It is first gathered:
, that 1t can therefore, be carried over
, until the restoration OF normal busi-
ness conditions enables the worlds
/, consumption to absorb It. The COM
mfttee is therefore la OF the coinion
that every effort should be made to
assist the producers to hold the:r cot
ton for price that will minimize the
, loss az far as possible, until ouch a
time as the trade Of foreign channels
F, shall be opened. The loans upon cot
ton made upon a basis Of cents per
pound for middling. less such margin
as the lender may consider necessary.
VIII afford reasonable protection to
Bankers, and will facilitate the flnan-
cing or our most important export
crop IN the present emergency.
%. That In suggesting 8 cents a
] pound for middling cotton as q basis
F, for loans, 1t is not the purpose of the
committe to convey the idea that the
figure represents in their opinion the
intrinsic value OF cotton, but that II ia
sufficient In their judgment TO meet
| the requirements of the situation and
enable the farmer tO market his cot
i rn In quiet and orderly manner.
g. That In case of tobacco and
naval stores the committee is inform
ed that when these commodities are
properly conditioned, stored and in
sured, they are practically non-perish-
able. and that the, committee there
fore recommends that warehouse re-
ceipts for tobacco and naval stores he
accepted as securities for loans on a
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.
Your committee = recommends
that notes not having longer then
months to run, when secured by prop
er warehouse receipts for the raiore-
tsiads commodities, properly insured.
be accepted; for rediscount by the Fed:
4 erai reserve banks. when organized.
and that they also be approved by the
National Currency Association and se-
cur!ty cor additional circulation to the
nationalk banks under the provisions
Ioi the Aidrich.Vreeland act, as amen
fded by the Federal reserve ! act.
] S. That. subcommittee he an.
pointed for the purpose Of comforting
/ with the treasury department and the
banking, interests with avyiew Of car
:ylng Into effect the recommendation
herein made ~ ny ~ ~ esIi.;
Tile report. was signed by q majority
on the committee including Royal, A.
I Ferris, s. n. Morgan. Lewis w s Par
kere r.; g. Rhett, D. Y. Cooper, n !.
i walters, Richard III. Edmondfs,s w n