Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-11-02
BANKERS WILL CONSIDER
COTTON POOL PHASES
Meeting to Consider the Response to
Request Made for 81, 100000
Contribution,
General Situation Grows Better
National City Banks Observa-
tions-Pay in Capital Today.
BY I. A. FLEMING.

purpose OF considering the proposed
cotton poo! from it's various angles.
with especial regard to the million
dollar contribution asked from Wash
ington financial interests.
Chairman K. y. Harper of the COM
rI,ittcc to make allottnents based on
deposits will report the amount each
bank would be called upon to pay.
provided EACH accepts the proportion
allowed He will also go thorough
ly into the cotton situation. the need
FOR the formation of the pool, the
comparative exports at different times
and reasons, and the Importance of
the crop, the need for the formal ton
of the pool.
New York city banks gave 100000
or. rather. expressed a willingness to
do SO. But there was no question of
banks. little and big, going into their
vaults for the fund, a few of the larger
banks expressing Il willingness to Shout
der the burden.
1t is not likely that any definite action
will be taken at the meeting to be held
this afternoon. Many of the heads OF
banks have not had an opportunity of
presenting it to their directors, and will
take no action before doing SO; others
are not familiar enough with the
proposition to be able to present it as
will be fully posted after the meeting.
1t will be necessary to hold another
meeting for definite action.
1t is safe to say that all the banks
will not go into the pool. Perhaps
Washingtons quota may be reduced.
Return Gold Pool Cash.
The managers of the gold pool have
returned to subscribers thereto one
ns RI
Washington bankers contributed
siS1, 500, and checks were received i'll
the mail this morning for S1S,750
This does not mean that the activi-
ties Of the gold pool are ended. as fur
Their calls may be made any day. but
there are many bankers who believe
that the formal ton of the pool with
contributions so far made, has been all
sufficient to handle the foreign eX-
change problem-and who would not
be surprised if the p per cent pay
ments would not be the last call.
Some hold. too, that the proposed
cotton pool, not fully provided for as
the immediate placing Of very heavy
orders from old-world spinners, who
have been holding back for lower
prices.
Getting Better.
proving. Bond houses report an ad-
vance Of one or two points in the IA
vorite municipal and railroad issues.
of local utilities.
The foreign exchange situation is
positively better. and no more evidence
than the return Of 10 per cent of the IS
per cent contributions to the pool, noted
above, is needed.
Money is gradually becoming more
plentiful. and if rates are not being
bankers are keeping the brakes on yet
little longer, pending the solution Of
problems put up to them by the gov
eminent through the federal reserve
board and the further clearing of the
atmosphere.
Bankers in New York are urging
their customers to square up their col
lateral loans as far as possible, and
where liquidation is not possible with
out serious loss, to put up additional
security. making loans safer and in no
need of further protection.
In quiet way there is conSidera BILE
business going on in securities. The
stock exchange committee is bringing
buyers and sellers together, bankers
are doing the same, and every one is
working for L. clearing CT the decks
anent the opening of the exchange. A
partial opening may not be long de-
layed.
Tax Effective Today.
Tax on bank capital and surplus, war
tax of 81 a thousand. is effective today.
Note tax will be effective December l.
Business in the United States.
Under the above caption November
circular of the National City Bank Of
New York has this to say:
Affairs in this country are moving in
an orderly manner toward recovery.
The banks in the central cities have
restored their legal reserves, money is
easier, fears of a financial crisis have
disappeared. the foreign trade situation
is better. pool to lend money on cot
ton has been agreed upon and the new
banking system is nearer to doing
business. These are all important
gains over the situation of two and
three months ago.
Trade is light, and judging by the
bank clearings, still declining, and the
increasing ease il the financial stu
alton is largely due 20 The relaxation Of
the demand for credit. There is Il gen
eral suspension of new undertakings,
which in Il growing country like the
United States are a great factor in the
business situation. The crops move,
and there is the usual buying for con-
sumption, but constructive work re-
curing capital is not taken up. Nat
urally there will not be much capital
for new enterprises while old. we'll
known securities can be bought at
present prices. The Industries depend
ent upon constructive work, such as
steel, lumber, cement, etc, are very
slack. and, of course, there is a great
deal of unemployment
Cotton.
The same authority says: 1t now APP
pears probable that some time during
the coming month. proba bly, the fore
part the New York Cotton Exchange
will be reopened for business. There
is good reason to believe that the open
ing of the cotton exchange will have
even a more beneficial effect upon pro-
ducing market for cotton than the
formation of the pool referred to. FIJI
arrangements have been abou.
completed providing all necessar.
New York Cotton Exchange. and ill.,.
opinion is expressed in many quarters
that like action Will be taken by the
New Orleans and Liverpool exchanges
at or near the same time
The demand for cotton continues poor
1t must be borne in mind that for sales
to he made some one willing to buy
and some one willing to sell must get
together There is no way to gauge
the real value. nor will there be until
tce sentiment of the market expresses
itself through the medium of the ex-
change. 1t is gratifying to note that
in many quarters it is believed the con-
sumption of the English mills will be
larger than heretofore.
The National City circular ais, en-