The Forrest City times., 1914-12-11

tie committee. It must be free from lien and protected by insurance against damage
 instructions to Bankers.
 me banker must be prepared to contribute to the loan fund oue-fourth ot the amount that his customers bor. TOW. He makes his subscriptions as the loans are made, sending forward New York drafts for 25 Der cent or each loan; in return, the banker re celVes certificate Of participation of the oenomination issued to the cot ton states subscribers, designated as
 Glass B. The S100, ,00O, ,OO0 subscrih. co by the city banks, being three. lourths or the entire fund, is desig- mated in Glass A" certificates fin pro- portion to the subscriptions of the city banks. When the loans are raid. the Class A banks receive two per cent m dividends to each one per cent paid Glass B banks until the balance dne CLASS A and Class B banks is eoual then the dividends are equally divided For instance, if bank was only jn- terested in one loan of s3,00O it's in- terest ln the pool would be a s75O certificate Class B; the Glass A pro. portion would be s2,250. When Class A had received 80 per cent of it's sub- scrfptions in dividends, and Class B one-half, or 40 per cent of it's subscrip- tion, the division between the "A" and B" class in that loan would be s45O each; future dividends would retire this equally.
 The Class A certificates are prefer red only to the extent that any losses to the cotton fund in the end would be payable out of the guarantee fund first to Class A and second to Class $. As the losses should be slight un- der the careful administration that Is being perfected, this preference should be of little moment if a fair amount of the fund is used.
 The bank is not required to endorse the loans of it's customers, but must guarantee the prompt and punctual ,payment by the borrower of interest on loans, and all warehouse charges and insurance premiums. As the forms to be furnished will be eom- plete. the transaction should be short and simple
 The Farmers Object.
 President H. s. Mobley of the Farmers Union of Arkansas said the farmers were very much disappointed in the details of the cotton loan plan. He said:
 "The farmers asked Congress to have the treasury deposit United States treasury funds in the banks to be loaned to the producers of cot ton at $30 per bale, at 6 per cent in- terest We made a strong fight for this, but the Wade plan was intruded into the fight, proposing that the bankers would subscribe S135,0 5,000,000 to a pool to be loaned on cotton on the terms we had asked government loans This defeated out efforts Since Congress adjourned we have waited patiently for the bankers plan to be put in operation. It is now an nounced that the governing committee is ready for business. They propose 70 lend on not less than one hundred bale lots.
 We had expected to be able to bor- row orr single bales or more. when properly insured and stored But thelr proposal to lend on not less than one hundred bale lots disappoints us in this regard AS the matter stands, the average producer is prohibited from borrowing, and will receive no benefit whatever. The cotton buyer and large grower can be taken care Of, but the multitude of small grow CTS are entirely eliminated, Can any one wonder at the discontent and prejudfce of the small farmer when matters which are proposed as being fof'his benefit turn out as this does, to be actually for the benefit of oth- CTS? y
 Tt is such proceedings as this that eultNates and keeps alive the labor ing mans antipathy to business men, especially bankets.".s