The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-16
MATTER is DISCUSSED
WITH RESERVE BOARD
President Wilson and Secretary
McAdoo Greatly Interested
in Scheme.
TO RAISE FUND OF sl5o,ooo, 900
New York Bankers Promise to Sub
scribe S5O,O0O,OOO of
This Sum.

WASHINGTON. October i5.-whilo
the Federal Reserve Board to-day on
the proposal for a S150,oOo,oOo loan by
bankers to aid cotton producers.
enough was accomplished 10 make 1t
certain the board would assume gem
eral supervision OF the fund If the plan
should be carried out. The matter was
discussed by the board to-day, and al,
though 1t already has the approval OF
the board in principle. difficulties as TO
detailsv of administration of the fund
were encountered which delayed final
action
President Wilson and Secretary Nc
Adoo are known to he greatly inter
ested In the success OF the plan, and 1t
was predicted tonight that the board
would work out system of admin
istration for the fund satisfactory to
the government and the participating
w. Simmons, the st. Louis bankers. who
have taken n leading part In advocat-
ing the plan, conferred to-day with
Secretary McAdoo and later with the
board.
Mr.. Wade and Mr.. Simmons came to
Washington with the promise of New
York bankers to raise $5O,000,o00 OF the
total and with telegrnms from most
of the Southern States containing simi>
lar promises for financial participa-
tons
About the only question left unset :
tied is the extent to which the Federal
Reserve Board shall enter into the op-
Grafton OF the syndicate. Its promoters
virtually desire that the board act as
Its managers. There has been some
objection to tiiis proposal. but Sccre-
tnry AIcAdoo and several other board
members are understood to favor 1T,
s, Alr, Wade left tonight for st. Louis,
Mr.. Simmons and w. PS G., Harding,
the member of the board most familiar
With send ttions IN. tas cotton g cs unity.
eSssTffSSs esaeshi 81 ~ SsisS sst alls
80, e !; FORM ONE OBSTACLE
Conditions imposed b! the New orll
banks on their contributions were be-
lieyed tonight to form one. obstacle
to an imm rebate acceptance of the plan.
They propose turning their quota over.
to the reserve board, to be loaned ito
national currency associations or Fed
eral reserve banks. To be useful. the
fund must be in hand within thirty
days. 1t was pointed out Tonight. and
reserve banks are practically elimi-
mated from consideration.
The question was raised in the board
meeting to-day whether currency asso-
ciat!ons created under the Aldrich
Vreeland act are clothed with legal
power 70 tnS u
forts will be made to straighten out
these difficulties, and the New York
bankers probably will be consulted.
Declaring that the crisis confronting
tile cotton industry is SO serious that
only Federal aid can forestnll disas-
trous results. the Governors of four
cotton States, in telegrams made public
here to-day. appeal to President Wilson
and Congress for immediate relief
measures.
Governor o. Is. Colauitt. of Texas.
characterizes the outlook as one of
Certain bankruptcy and adds that the
situation "is daily growing worse"
Emergency currency issued to the
banks has not relieved the cotton
States, says the Texas executive. but
the deposit of government funds in
banks under the express condition that
II be advanced upon cotton at it's fair
value at a. low rate of interest for one
year, with the Legislatures of the cot
ton producing States or through an act
OF Congress curtailing the acreage and
production for 1915, would, in my opin-
ion, very nearly solve the situation.Y