The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1914-10-17
FEDERAL RESERVE BOARD WILL
MANAGE FUND AND DIRECTL0AN
Country Must Raise Remainder-Rec.
ognize That Caring for Surplus Cot.
ton is National Problem-Loans for
One Year at Rate Of 6 Per cent-Mc.
Adoo Willing for Board to Assume
Burden.


$l5O,OOO,000 fund by bankers and rep
resentatives of southern cotton plant.
ers to finance the country's cotton
crop virtually is assured, it was an
nounced here tonight, and the federal
reserve board at Washington will he
called upon to manage the fund and
direct the loading of it.
The New York bankers, at confer
ence with cotton planters representa-
tives here during the day agreed, it is
stated, to furnish $50,000,O00 If the
rest of the country would supply $780,.
100000 or more under conditions
agreed to at the conference. Festus
j. Wade, president of the Mercantile
National Bank of st. Louis and a men,
ber the the st. Louis Clearing House
association, issued statement an
nouncing the plan.
Mr.. Wade said that 'the task put
upon the federal reserve board. while
onerous, was readily accepted by Sec.
retary McAdoo, who recognized the
gravity of the situation"
"The difficulty encountered was to
determine how the syndicate could be
managed and money loaned at the
least possible expense to the borrow
err" Mr. .Wade's statement continues:
And after many conferences and tele.
phonic communications between Wash.
ington and New York II was finally con.
| cluded to turn over the entire fund to
the federal reserve board at Washing
ton who would act as managers of
| same and direct the loaning of the
fund. The outline of the plan as agreed
upon is as follows:
81. Organize $150,000,000 cotton
loan fund throughout the United States
which fund shall be turned over to and
managed by the federal reserve board
at Washington and loaned to the Ma.
tional Currency association or to the
federal reserve banks.
Loans To Be Secured.
"2. All loans to be made payable
before one year at the option of tho
borrower, with the right to the federal
reserve board to extend any or all
such loans made for two periods of six
months each, interest on such loans to
be at the rate of per cent per annum
"3. All loans to be made at not to
exceed cents per pound, middling
basis, to be secured by approved ware
house receipts for cotton properly in
sured.
"a. The fund to be called for by the
federal reserve board in such install
ments as may be necessary.
"5. New York financial institutions
will subscribe $50,OO0,OO0 under above
conditions toward such fund, provided
the balance of the country subscribes
not less than s1OO,oO0,0o0
"The details are to be worked ou
by committee to be appointed by the
| tcuSIdl ItotlNt DOdiuy WuISh unquto
tionably will have the support of ever!
part of the country.
ut is recognized that the caring TO
the surplus cotton crops Is nationa
problem, one which interests all manu-
featuring industries, commercial estat
lishments, agricultural resources trans
portation companies and financial IL
terests and which will undoubtedl
receive universal support throughou
the nation
"The task put upon the federal n
serve board, while onerous, was reat
lily accepted by Secretary McAdo
: who recognize the gravity of the sit
+ alton. as we'll as the practicability
I the plan to meet the situation, and
l. is understood that through his guidir
r influence the entire fund Of $4,000
y 1000 was made available to the cottt
J. (Continued ON Page Night.)