The Green Forest tribune., 1914-12-18
PLAN IF HANDLING
 TIE COTTON FUND
METHOD FOR OPERATION OF THE $135,oO0,o0o LOAN FUND IS
 DECIDED UPON.
FARMERS ARE NOT SATISFIED
President H. s. Mobey of the Arkan- sas Farmers Union Says Scheme
 Will Not Help Small Farmer.

hington.-Plans have been con- pleted for the operation of the S135,- 100000 cotton loan fund, and meet ing of state chairmen is being held in Washington. The plan was approved on November 30, 1914, by the Central Committee, composed of all the mem- bers of the Federal Reserve Board. The Cotton Loan Committee, which worked out the plan and which will be in charge of the administration, IS composed of two members of the Fed eral Reserve Board of Washington, D. C., W. P. c. Harding chairman, and Paul M. Warburg, and five representa- tive bankers, Albert H. Wiggin and James s. Alexander of New York, James B. Forgan of Chicago, Festus ]. Wade of St Louis, Levi L. Rue of Phil adelphia and William A. Gaston of Boston.
 The forms Of contracts, notes, certi- ficates, assignments, etc, are now being prepared by attorneys, and 1t is expected that money will be available for loars within Is days, probably i'm mediately following a meeting of the chairmen of the state committees.
 The state committees will appoint local committees in sufficient number to facilitate and safeguard the practi- cal workings of the plan. The plan itself is simple.
 The fund is distinguished by its operation as a pool of many lending and borrowing interests, and by the length of time that the contracts will run. Loans are made for one year, though they may be paid sooner. On the other hand, the Central Committee has the right to hold the contributors to the fund an additional six months after the first year, if conditions, in their opinion, justify.
 It has been generally considered that the cotton fund will not all be applied for. The amount to be used, however, must be determined by the first day of next February, because the subscribers to the fund will be re- leased on that date for the balance not applied for.
 It is understood that red tape and undue formaiity will be eliminated as much as possible in the handling of the fund.
 Explanation of the Plan.
 The following is brief explanation of the plan for the benefit of cotton owners and bankers:
 Loans will not be made on lots of less than 100 bales, except in particu- lar instances.
 The farmer, the merchant and other cotton owners in any state may apply to his bank for loan on cotton to be paid within one year after February 1, 1915, with interest payable quarterly at the rate of 6 per cent per annum.
 The loan may be paid and the secur- ity released at any time during the year, after the borrower gives 30 uays' written notice, and upon payment of interest to the end of the quarter
 AS security for the loan, the borrow CT will offer cotton valued at esix cents per pound for "middling" grade <1dJuoIlliClAG tO Dt ll1eiuG IOI tttI Si iutS above How middling.
 The margin of security will be 20 per cent, so that for a loan of S3,000 the security would be 120 bales of mid ding cotton, with a little less security for the higher grades, and little more security for the grade or two lower
 From the proceeds of the loan, three per cent will be turned into the Got ton Loan Committee in New York as . guarantee against loss from any cause. Expenses of administration, which will not exceed Is of l per cent, will be paid from this fund.
 It should be remembered that the services of every one connected with the pool except clerical, legal and tech nical, are given without charge. There fore if the pool Is administered with out loss, as expected, the guarantee fund will be returned prorata to the borrower.
 From the example loan of 5000 there would be deducted for the guar antee fund S90, or soc bale on 100 bales of cotton The net proceeds of the loan to the borrower would be $2- a10 The banks are not allowed to charge any commission or othe- fees. The cotton of course must be stored in a safe place i'll the custody of a warehouseman other than the Dor rover or the banker. The grade must be established to the satisfaction of -~~~~-->----~~---- --------->--->--~-------~
 Cotton Belt Employees Divided.
 St Louis-A vote to strike has been adopted by the conductors and brake men of the uriolS of the Cotton Belt