The Miller press. [volume] (Miller, S.D.) 190?-current, 1914-10-22
S15o,ooo,o 900 FUND APPARENTLY
MADE CERTAIN BY PLAN PER
FECTEO BY PLANTERS AND
NEW YORK BANKERS.
FEDERAL RESERVE BOARD
IS TO DIRECT LOANING
Secretary McAdoo Said to Have In
dorsed This Course-New York
F~inanciers to Subscribe S5o,ooo,-
600 Upon Condition That
Country Take Remainder.

New York, Oct. 16.-The raising of
a $4,000 900 fund by bankers and
representatives of Southern cotton
planters to finance the country's cot
ton crop is virtually assured, it is an
nounced here, and the federal reserve
board ss Washington will be called
upon 20 manage the fund and direct
the loGning of it.
New York Raises $4,000 900.
Nov York bankers at a conference
with cotton planters representatives
hers during the day, agreed, it is stat
ed, TO furnish $780, GOO, 600, if the rest
Of the county would supply 500. OOO,-
600 or more under conditions agreed
TO at the conference.
Festus j. Wade, president of the
Mercantile National bank of st. Louis,
and a member of the st. Louis Clear
ing House association, issued a state
ment announcing the plan. Mr.. Wade
said that "the task put upon the fed
eral reserve board, while onerous,
was readily accepted by Secretary
McAdoo, who recognized the gravity
of the situation"
Mr.. Wade attended the conference
and later went TO Washington to dis
cuss the plan with members of the
federal reserve board. Several prom
inent st. Louis business men, who
came to New York with Mr.. Wade,
accompanied him to Washington.
A Definite Conclusion.
Mr.. Wade set forth that a definite
conclusion was reached between the
st. Louis committee and New York
bankers.
by the action of the New York
bankers" the statement says, 1T may
be safely assumed that the fund I'M
Goubtedly will be raised within the
next few days.
The difficulty encountered was to
determine how the syndicate could be
managed and money loaned at the
least possible expense to the borrow
er, and after many conferences and
telephone communications between
Washington and New York it was
sDally concluded to turn over the en-
tire fund TO the federal reserve board
ct Washington, who would act as man
ayers of the same and direct the
loauing of the fund. The outline of
the plan agreed upon is as follows:
The Plan in Brief.
"Organize $500 0 900 cotton fund
throughout the United States, which
fund shall be turned over to and man
aged by the federal reserve board at
Washington and loaned to the ma.
tional currency association or to the
federal reserve banks. All loans to
be made payable on or before one year
at the option of the borrower, with
the right to the federal board to ex-
tend any or all such loans made for
two periods of six months each, in.
terest on such loans to be at the rate
Of 6 per cent per annum.
"All loans to be made at not to ex-
coed 6 cents per pound, middling ba-
sis, to be secured by approved ware
house receipts for cotton property in.
sured.
Fund Called For As Needed.
THE fund to be called for by the
federal reserve board in such install
ments as may be necessary.
New York financial institutions
will subscribe $4,000, 900 under above
conditions toward such fund, pro-
vided the balance of the country sub
scribes not less than 500, 900, 900.
"The details are to be worked out
by a committee to be appointed by
the federal reserve board which will
unquestionably have the p of
every part of the country.
1T is recognized that the caring for
the surplus cotton crop is a national
nroblem, one which interests all
manufacturing industries commercial
establishments, agricultural
transportation companies and financial
interests, and which undoubtedly will
receive universal support throughout
the nation"