The Natchitoches enterprise., 1914-11-05
Digest OF lbs, 900, 900
Cotton Loan Fund Plan

Reserve Board at Washington
October "a, 1914 have been mad,
public and are outlined as follows
Administration
The fund is to he administered
under the direction of the individ
ual members OF the Federal Re
serve Board, who have placed thu
task of the general administration
on a Cotton Loan Committee, con
sisting of the following gentle
men:
Chairman w. P: G Harding oil
the Federal Reserve Board.
Paul Warbury of the Federal
Reserve Board.
Col. E. NJ. House, Austin, Tex
as.
Albert H. Wiggin, New York
City.
James B. Forgan, Chicago II.
linois.
Festus j. Wade, st. Louis Mis-
souri,.
Levi L Rue, Philadelphia, Pa.
VIM. A. CASTOR, Boston. Mass.
Amount of loan
1t is proposed to create fund
of approximately $l35, 10000 to
be known as Cotton Loan Fund. 50
Subscriptions
Subscriptions shall be divided
iLto two classes; Glass "A con-
sisting Of banks or other corpora
tions, firms or individuals located
or residinL in other than cotton
pro lucing states.
Class B" subscription banks or
bankers located or residing in the
cotton-producing states: Arkan-
sas, Florida, Georgia. Louisiana,
Mississippi, North Carolina, Okla
hOma. 5 ,uth Carolina Texas anil
Tennessee.
All Glass "A" subscription shall
be contingent upon the receipt Of
of that class aggre
eating 100000, 200. The fund
shall not be regarded established
for any purpose unless said sub
scriptions shall aggregate 500,
100000.
On payment in whole or 10 part
of subscriptions, participation GER
titicates shall be issued evidencins
the interest of the subscriber
Certificates shall be transferable
on the books of the committee
and specify the terms under which
the owner will be entitled to share
in the distribution of mon US real
lied from the loans made.
Note--While it is provided that
subscriptions to Class ''B'' shall
be made by banks or bankers in
the cotton producing states, yet
their doing so is a part only of
their applying for a loan for q
customer, and in that event the
subscription must be in an amount
equal to 25 per cent of the loan
and for this subscription they are
given transferable participation
certificates.
For example, cotton planter,
merchant or manufacturer in Cor
sicana, Texas, has a thousand bales
of cotton and desires to borrow on
same.
This plan gives him the oppor-
tunity of going to his banker at
Corsicana and applying for loan
of &c pound, or $50 900 in total.
He makes his note for $50, 900
with the cotton As security; the
banker knowing that he is a per-
fectly COOL risk, commercially and
financially, agrees TO make him
the loan, The banker advances
81, sou of it for which he takes a
Glass b. certificate bearing 6
per cent interest for $500 nd
s cures the planter, merchant or
manufacturer, $22, :,9J with tbs
Que Thousand bllas Of cotton us
security from The $500 .0JU,O0O
against which will he ISSUED
Glass "A" certificate Tor $4,000
which certificate is issued to the
subscribers other than those in
cotton producing states.) 1t win
be observed that no definite SUBJ
scription to any fund is required
from the South Thus each bank,
whether it be state bank. nation
al bank or trust company, can fin
ance any of their customers need
ing financing, and as such banks
or trust companies know to whom