New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-28
LIGHT BREAKS ON
FINANCIAL HORIZON
Cotton Loan, Federal Re-
serve and Contraband
Agreement the Cause.
rFrom The Tribune Buroau.I

Washington, Oct. 27.-The financial
situation has cleared TO such an extent
that officials Of the Treasury Depart
ment and the Federal Reserve Board
took the view to-day that 1t probably
would be unnecessary TO resort to un-
usual methods to adjust difficulties in
connection with foreign exchange. The
conference between Sir George PaIsh.
/ Basil Blackett and members of the Re-
serve Board will be resumed on Friday,
but il is not unlikely that no plan will
be formulated In view of the improved
outlook.
The establishment Of the cotton
loan fund. the approaching opening OF
the federal reserve system, Great
Britain's assurances that cotton will
not be considered contraband and the
increasing expectation of cotton all
gave basis for the hope that the most
acute of the financial troubles OF the
United States were over.
Secretary McAdoo was particularly
optimistic over the situation to-day.
lie emphasized the declaration of the
British government with respect 10 cot
ton, and said that the United States
was now in position to ship cotton
freely. He expressed regret, however,
that Congress had not passed the ship
purchase bill, taking the view that
American cotton in American bottoms
could be transported on the high seas
with safety, and that there would be
henceforth an increased demand not
only for raw cotton but for cotton
products.
Details of the plan for the cotton
loan fund of Sl35,000,000, which now
awaits final action by the bankers, were
agreed upon and made public by the
Federal Reserve Board to-day.
The subscribers TO the fund are TO
be divided into two classes, Class A
consisting Of banks or other corpora
tions, firms or individuals located or
residing in other than the eleven cotton
producing states; Class b consisting of
banks or bankers of the eleven cot
TIM producing states, who will be re-
Quired 20 subscribe not to exceed 20 per
cent of the amount OF the loans for
which they apply. Certificates VIII be
issued for the subscriptions TO bear
interest - the rate Of 6 per cent.
The fund is TO be administered under
the direction of q central committee
which will delegate necessary powers
to the Cotton Loan Committee, to con-
sist of the following members:
w. P. G. Harding, chairman, Wash
ington; Paul NJ Warburg, Washing
ton; Colonel f. VI. House, Austin, Tex;
Albert II. Wiggin, New York; James S.
Alexander, New York; James B For
gan, Chicago; Festus J. Wade, 81.
Louis; Levi l.. Rue, Philadelphia, and
William A. Castor, Boston.
In each of the cotton producing
states a committee will be appointed %
have charge of the working of the plan.
The money will be loaned on cotton
warehouse receipts. The plan requires
that all applications for loans be made
before February I, 1915, and that the
loans shall mature on or before Feb
ruary I, 1915.
Little Rock, Ark, Oct PA pledge
Of 2 per cent of the capital stock OF all
banks in Arkansas to the cotton pool
fund was made to-day by the members
of the Arkansas Bankers Association
in special session here.
One hundred and fifty bankers at
tended the meeting The pledge will
mean the raising Of S2,OO0,O00 of the
So 100000 fund expected of the state
for the $4,000 900 pool. The associa-
tio1 also Endorsed the move for q
standard and uniform warehouse re-
ceipt.
one million dollars already has been
pledged by jobbers and wholesalers OF
the state.