The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1914-10-29
35.0uo.nu0 LOAN RI NJ.


Wa>hineton. nrt. -. .Nftar Wec'>
81 NEGOTIATION between bankers AIT.
EeGerii rcSe:ve merlHerS, d teHtatiV"
agrerment WIS reached tonight. when
the board virtually approved plans
by which a :Elnd OF $l3I ,"n".""n Wi!
he raised 70 care for tie surplus cot
ton crop and extend aid 10 cotton PFC
durers. Tie plan is slightly differ
eat from that originally proposed.
bur loans Will he made on Gotten at
Il cents per pound. bearing interest
OF not more than e per cent. Tor one
year with privilege of six months
extension.
The reserve board will have direct
supervision of the fund, but broba-
bly, will operate through committee
of bankers and business men.
All details of the plan we're not
made public tonight. New York
bankers have agreed to subscribe
$50. 400. 900 to the fund and South
ern banks are counted on for S33.-
%" 900 more. The remaining So
600. 900 is to be raised in non-cotton
producing States.
McAd0o's Statement.
Secretary McAdoo outlined the
plan tonight in the following state
ment:
The federal reserve board today
continued consideration OF plans for
relief OF the cotton situation, giving
Sretiai attention 10 a plan suggested
b. Albert II. Wi@gin. J. S. Alexander.
: J. Ee"luhi.l and William Wood
ward. Of New YORK. and Festus X
Wade. OF ST. Louis. for the raising OF
a cotton loan fund a".reeaJ!ns 3d.
G"0.nV". This plan has been evolved
from that originally proposed by Mr.
Wade. Full details cannot be given
out until it is submitted 10 bankers
in leading financial centres TO aScer-
tain Whether or not they will sup
port il. 1t has been approved tenta-
tively b. the federal reserve board,
and bankers in the leading financial
cities will be asked Immediately to
subscribe SJo.""o.U00 upon condl-
tions tha; an additional 100000
shall be subscribed hv cities III nom
cotton producing states. The re-
main:n. So 900 90" Is 70 be provid-
Cd hy tie cotton States.
Tie new plan coniemplatcS the
, loaning OF money on cotton at six
cents a pound and at all interest rate
not exceeding 6 per cent. for d period
OF one year, with the privilege o. a
renewal Tor an additional period OF
six months. 1t is provided that all
services rendered in the administra-
ton o. The iuDd by voluntary commit
tees and bankers shall ha without
Charge. Int that the borrowers shall
. va :. per cent. on the amount loaned
20 them INTO fund which is 10 be
'a!!el the guarantee fund AID Is 10
;.e used exclusively for paving the
necessary expenses OF administration
which it is estimated will not en-
ceed one-eiShth OF one per cent, and
| the remainder to be used to make
! good am losses which may be incur
red on loans that may be made on
cotton at the stipulated rate OF six
cents per pound. Upon the conclu-
| sion of the whole transaction the
amount of money left in the guaran-
! tee fund will he returned pro rata to
the borrowers.
1t is hoped that responses may
be received from the bankers OF the
leading cities early next week. If
favorable the plan will be put into
| immediate execution. In that case
the cotton loan fund will be admin
istered in the general supervision OF
central committee of the individual
members of the federal reserve
| board, which committee will. in turn.
appoint a committee to be known as
the cotton loan committee and
which will have actual management
of the fund.
The plan in its new form is more
presented, and it is hoped the requis-
! ite amount may be promptly sub
scribed that the plan may be put in
to immediate operation.
Old CampaignerS.
Tbev ware hOfh retired officers