The Birmingham age-herald., 1914-09-01
PLAN FOR
 CARRYING COTTON
 CROP ADVANCED
Henry Introduces Bill Pro- viding Government Loan Almost Directly to
 Planters

Washington, August 3l.-(Speciall-Still another plan for carrying the cotton crop through the European war was advanced today. This is a bill introduced by Rep resentative Henry of Texas, chairman Of the committee on rules By this, the gov Dernment would loan emergency currency almost directly to the planters and land owners on valuation of F cents a pound. the law to be effective till June 30 1916
 Although the bill opens by providing for the financing of the cotton, wheat corn, oats, tobacco and food product crops" only cotton is mentioned there after throughout the measure.
 At the outset the secretary of the treas ury and the federal reserve board are di- reoted to ascertain the percentage of such crops exported in 1913 from each of the 12 federal reserve districts, and the emer- gency currency is to be apportioned among them on this basis. The federal reserve board then shall deposit with the treas ury the sum of federal reserve notes equal to 90 per cent of the capital stock of all the national banks In each district d9 Oi June ios 1Jl4. tO. ht Stt dpdTI TOT emergency currency.
 Advance Money
 Whenever producer of cotton or owner or lands on which cotton is produced, says the bill in effect. shall through any state or national bank present to re- gional reserve bank bill of sale in writ ing on cotton in bales. grown in 1914. 1t shall be the duty of the regional bank to advance currency at the rate of F cents pound for 'middling'' and for other grades on a proportionate basis.
 The cotton shall be protected and in- sured and title shall be vested in the regional bank. The state or national bank handling transaction shall give the funds ito the producer and shall hold the cotton, IS custodian for the regional bank. Further than this, the minor bank may name deputy custodians" to care for the cotton, including the producers of the cotton or the owners of the land on which 1t Is grown, provided they give suitable bond This virtually would per init the planters or land owners to fi- nance their crops and yet retain cus- tody of the cotton.
 Interest is placed by the bill at X per cent and the state or national bank in- volved shall receive 50 cents bale for labor and services as custodian" and shall be liable only for gross negligence or breach of trust.
 All cotton so financed shall remain the property of the regional bank until sold at the pleasure of the reserve board when middling spot sells in the open market at Savannah, Ga, at l5 cents. or upon re- quest of the .person from whom title passed to the tegional bank
 Calculate Interest
 When the cotton is sold the custodian bank shall calculate the interest of the original price at per cent and shall retain this interest. the insurance and storage charges and the compensation of 90 cents a bale. If any bank in a coun- ty declines to handle such transactions the postmaster in any town shall be au- thorized to act as agent and custodian and the postmaster general shall give him help and compensation
 After the passage of bill such as this measure. it shall not be lawful to make any issue of emergency currency and the secretary of the treasury must have all outstanding issues revised and cancelled
 Representative Taylor today wrote to several citizens of Monroe county who had asked him to support bills to pro- vide for flying the ships and shipments and for government financing of 5000, 900 bales of cotton at cents a pound"
 The first suggestion he said, was con- sidered by the Panama canal law; a bill for the second now was under debate in Congress, and the valorization plan he considered hardly practicable. This last view was emphatically expressed by Secretary McAdoo the other day.
 Economy. coolness courage and com mon sense are worth all the legislation ever dreamed of," concluded MT. Taylor.
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