The Birmingham age-herald., 1914-10-28

N"'Y. NeopohseS are cNpcCtcu peIoTe hopeful that the plan would meet with adoption certain.
 Tho outline differs only in detail f from the previous announcements of the board, The fund it shows, Is to be administered under direction of Committee to be known as the central committee to be composed of the in- dividnal reserve board members. Ac tual administration of the fund wilt be under a cotton loan committees" consisting of the members:
 W. P, G. Harding, member of the board chairman; Paul M. Warburg. of the board; Col. E NJ. House, Austin. Tex; A. H. wiggin, New York: James s. Alexander, New York, James R. For gan, Chicago Festus l. Wade. Ss. Louis; Levi l.. Rue, Philadelphia. aud William A. Gaston, Boston. Two Classes of Subscriptions There are to be two classes of sub scriptions. The first. to be known IS | class A, will aggregate sfo0. .00a and win be raised in non-cotton pro- ducing states. Class subscriptions are to be made by banks or bankers n cotton producing states
 1 Applications for loans must be sub mitted to state and local committees. which are required to approve them and made by banks or bankers Ap- plica lions must be accompanied by sub serlptions to class "B" amounting to % per cent of the loan requested, SO that non-cotton producing states par ticipating will loan 75 per cent and cotton states 25. Every subscriber will receive certificates of participation. which shall be transferable on the com mittee's books and bear 6 per cent interest
 Loans will be made on notes at per cent with warehouse receipts for cotton as collateral. on the basis of cents per pound for middling. All ex- penses for warehouse and insurance charges must be borne by the borrower. A guarantee fund is to be created by deductions of per cent from the faco value of all loans. which will be used also to provide funds for the payment of expenses of administration, esti- mated not 10 exceed one-eighth of per cent of the fund
 All applications for loans must be made before February 1. 1915. The loans will have a maturity of one year | with promise of renewal for six raonths on approval of the central com mittee.
 l In the repayment of subscribers to | the fund. the class A certificates Will be taken care of in proportionately larger degree until the outstanding amounts of each class become equal.
 Boards Statement
 The boards statement follows:
 Ut is proposed to create in the man. her hereinafter provided fund of ap proximately st35o00ooo to be known as the cotton loan fund and to be used for the purpose herein stated Subscribers to this fund shall be di- vided into two classes to be designated respectively as class and class H subscribers Class A subscribers shall consist of banks and other corpora 1 tons firms or individuals located or residing in other than the cotton pro- ducinE states of Alabama, Arkansas. Florida Georgia. Louisiana, Mississippt North Carolina. oklahoma. South Caro- | lima, Texas and Tennessee
 "All class A subscriptions shall bo contingent upon the receipts of sub scriptions of that class aggreeatng | Sfok 0OO 900. Class E subscriptions shall be made by banks or bankers To" cated or residing in the cotton pro- ducln'p states above mentioned and rs
  | plained: no class R subscription shall be required except as n condition of loan or loans to be made out Of the l fund to be created. and in such event subscriptions shall not he required to exceed 25 per cent of the amount or tho loan applied for.
 1 Each subscriber shall. upon the pay. ment in whole or in part of the amount | subscribed for receive a participation certificate transferable on the books Of the committee showing on It's face the class of subscription represented thereby and specifying the terms under which the owner will be entitled to share Tn the distribution of the moneys realized from the loans made from the fund ere | a.ed.
 Bear Per Cent Interest l All class and class B certificates | shall bear interest at per cent per an- | num- payable quarterly.
 "The cotton loan fund will he admin l istered under the direction of com mittee to be known as the central com mittee and to be composed of the indi- yidual members of the federal reserve board The central committee shall ap- point a committee for the general admin (Continued on page Eieven)