The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1914-12-11
FACILITIES NOW AMPLE
FOR FINANCING COTTON
CONTINUED FROM PAGE TnREE)

rate OF per cent; vi ,25U would bt
given MIN in cash. ivss 3 per cent.
which is retained by the loan com
mittee as q guarantee fund to cover
losses that may occur In making
loans. and the expense of disbursina
the loan fund. This expense. 1t IL
stated. will not exceed one-eighth ol
per cent. The loan is made for O
period OF one year. and on the up.
proyal Of the committee may be re.
newed for another six months.
| When the farmer sells his cotton
and retires his $4,000 note, he pays
interest on the $11,250 at the rate OF
6 per cent. for the time he has the
money. He would also pay interest
on the B certificate. but this interest
lie himself would get. The per cent.
Is held until the liquidation of the
entire fund Is complete. The borrow
er pays I-S per cent. straight inter-
est, which includes his share OF the
| operating expenses. but does not in
clude losses to come out of the 3 per
cent
The terms OF the loan forbid any
one to charge commissions for con-
Quoting the negotiation for the loans.
tine banks are expected to do this
gratis for their customers and can
AFFORD to do 80. as they will receive
the money on deposit or debts due.
=" For rlmmedlnte Relief. M
1.-The. second channel open TO US ls
through. the discot1nt: feature OF the
federal reserve ;aEksSdt Is there that
We must look for immediate relief.
1t Is we'll to remember, however.
that the federal reserve: hank at
Eichmond ia the bank OF bankers, and
that relief can only come through
the member banks of the federal re-
sefve system.
Under section 13 OF this act, rany
ic %eral Reserve bank may discount
,otes drafts and bills of exchange
arising ..-t OF actual commercial
t-acsac. '"at IL, notes, drafts
anh bil.s .. eSch..e1 issued or drawn
for agricultural or commercial pu--
pNae.." etc., ETC., for q period of 30
days: Provided, That notes. drafts
and bills drawn or issued for CON-
mercihl purposes or based IOn live
stock. and having a maturity not ex-
ceeding six months, may be discount.
ed In an amount to be limited to a
percentage Of the capital OF the fed
eral reserve bank" etc. Rhis amount
is fixed at 10 per cent Of the unim-
paired capital and surplus OF the
bank.
Then the. act, In tIa$ following .spe.
cifc terms. exemDts from all restric.
tion the dIEcpnpt ofrhflls at exchange
drawn in. E6od faith against arthaiiy
existing, yalye5.... s...., !.
3iAt thbf cotton ieohfereaeS y c...is;i;; -
Secretary McAdoo. Ausr.e. 9. O. sssa aa55,
he ruled that under the .,Aldrtctl-
Vreeland emergency act. cotton ware
house receipts were acceptable as se-
curity for the Issue o: currency.
,;si ~. s,Loan| yalqe .Besis.y,, !, ;,r,A
Now. with the federal reserve act
va hnve a further ehlargament LOT
their sphere of usefulness. ~ +
The committee appointed by Hr.
McAdoo. after coffyratuiRtfng him
upon his ruling as to warehouse re-
ceipts; said that '4he average market
value OF middling Gotten. for the past
six years has been In excess OF 1a
cents per pound" that cotton does
not deteriorate when properly ware
housed" ETC., etc. at can, therefore,
be carried over until the restoration
nf normal hns!sess conditions enables enable
the worlds consumption to absorb II.
The committee therefore is of the
.opinion- tbat every effort should be
made to assist the producers to hold
eheir cotton for q price that will min
!m!.e. the!r !css. etc, etc. The con-
mittea then suggested 8 cents per
pound az tho b;sia for loans. M
!! In the currency act Just put into
operation thore Is conferred. . ample
power to protect the producers of cot
ton against loss from lack OF ian, ade-
sSsss isspsss aSSHsesTn snn r.
available funds being tied up in the
very ;cemnDdity. EshfEH swd3a4es trying
to hold, There are. however. sources
open tot tho centraA sbbardS Of which.
Mr.. McAdoo IS exQficio chairman, that
cap, meet tho situation. The under,
lying principle OF the federal ,feaerVa
oct D. that II Il possible TO marshal all
'bf the asset8 or the entire system at
Its weakest point. instead of, as here
tofore. each tnnk being left to stand
OF fall aion y
|, Can { sripel Rediseounss. 81
I Under sec ION 10, subhead B; i've
members. Of. the e;greserve board In
Washington !, can. by an atSirmative
vote. require other federal reserve
banks To redisconnt paper which ihas
heen discounted. by the Richmond
bank, and this with or Without tho i1-
dorsementA OF the member bank. So
Tar: as II see, there are mo, limitations
10. .the amount Of sHchE Ediscolnts. ,sE
.S Under section 81 OF The sect,. federal
reserye notes are issued i.at the dis.
stetion of the federal !, raseEye hoard