The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1914-11-06
a DIGEST OF THE COTTON
LOAN FUND PLAN


eral Reserve Board at Washington.
October "a, 1914, and the following is
an outline:
Administ ration
The fund is to be administered I'M
der the direction of the individual
members of the Federal Reserve
Board who have placed the task Of
the general administration on Cot
ton Loan Committee, consisting Of
the following gentlemen:
Chairman, w. p. G. Harding of
the Federal Reserve Board,
Paul Warburg Of the Federal Re
serve Board,
Col Z. NJ. House, Austin, TC&ns.
Albert II. Wibbin, New Yorl, City.
James b. Forgan, Chicago, Ill.
Festu5 J. Wade, St. Louis Mo.
Levi l.. Rue, Philadelphia, Pa.
VIM. A. Castor, Boston, Mass.
Amount of Loan
II is proposed to create Il fund Of
approximately $l35O00,0o0, to be
lEown as COTTON LOAN FUND.
Subscriptions
Subscribers shall be divided into
two classes: Glass -" consisting of
banks or other corporations, firms or
individuals locating OF residing in
other than cotton producing states.
Glass "B" subscriptions, banks or
bankers located or residing in the cot
ton producing states: Arkansas, Flor
ida, Georgia, Louisiana, Mississippi
North Carolina, Oklahoma, South Car.
DINA, Texas and Tennessee.
All Class "a" subscriptions shall be
contingent upon the receipt of sub
scriptions of that class aggregating
100000, 200. The fund shall not be
regarded established for any purpose
unless said subscription shall aggre.
gate $lOOO0O0O0.
On payment in whole or in part OF
subscriptions, participation certiii'
Gates shall be issued evidencing the
interest Of the subscriber. Certiti,
Gates shall be transferable on the
books of the Committee and specify
the terms under which the owner vii
he entitled to share in the distribu
lion of moneys realized from the loan.
made.
NOTE.-Whie it is provided tina
subscriptions to Glass "B" shall b,
made by banks or bankers in the cot
ton producing states, yet their doinl
so is as part only Of their apply
ing for loan for a customer, and il
that event the subscription must bt
in an amount equal to 25 per cent o
the loan and for this subscription the!
are given transferable participation
certificates.
For example, a cotton planter, nier
chant or manufacturer in Corsicana
Texas, has a thousand bales of cottoi
and desires to borrow on same.
This plan gives him the opportun
ity of going to his banker at Corsi
cana and applying for loan of &c
pound, or 100000 in total. He make
his note for $4,000 with the cotto
as security; the banker knowing tina
he is a perfectly good risk, CONNER
cially and financially, agrees to max
him loan. The banker advances 81
500 of il for which he takes Clas
"B" certificate bearing 6 per cent ii
terest for $500 and secures for tn
planter. merchant or manufacture
S22,500 with the one thousands bale
of cotton as security, from the 500
100000 against which will be issue
a Glass "A" certificate for 500, 50t
which certificate is issued to the sui
scribers other than those in cottor
producing statesJ. 1t will be obser'
ed that no definite subscriptions
any fund Is required from the Soutl
Thus each bank, whether it be Stat
Bank, National Bank or Trust Con
pany, can finance any of their cust'
mcrs needing financing, and as sue
Banks or Trust Companies know
whom they are loaning, they take 7
risk or their Glass "B" certificate
if they are conservative in maxim
such loans. 1t is to be noted that bot
Glass "a" and Class "B" certifcat,
being negotiable, can be disposed (
by the banks in any manner seen fit.
Interest on Certificates
All Glass "a" and Glass "B" cert
ficates shall bear interest at the raj
of per cent per annum, payab
quarterly.
rI,os ssR" Stt,,s-rintio inns