Abbeville progress. (Abbeville, Vermilion Parish, La.) 1913-1944, 1914-12-19
Ian Of HANDLING
THE COTTON FUND
jETHoD FOR OPERATION OF THE
S135,oOO,OOO LOAN FUND 10
DECIDED UPON.
FARMERS ARE NOT SATISFIED
PRESIDENT n. S. Mobley Of the Arkan'
sss Farmers Union Says Scheme
viii Not Help Small Farmer

Washington-Plans have been com ,
Dleted for the operation OF the $l"''-
OOO. 900 cotton loan fund. and meet
ing OF state chairmen Is being helu III
Washington. The plan was approved
on November 80. 1914. by the Central
Committee. composed Of all the mem
bers of the Federal Reserve Board.
The Cotton Loan Committee, Whl'h
worked out the plan and which VIII
be I'm charge OF the administration IS
composed of two members of the Fed
eral Reserve Board OF Washington, ID.
c.. W. p. G. Harding. chairman ana
Paul NJ warburg. and five representa-
tive bankers, Albert II. Wiggin ana
James S. Alexander OF New YORK. |
James b. Forgan OF Chicago, Festus j.
Wade of st. Louis, Levi l.. Rue OF Phll-
adelphIa and William A. CASTOR OF
Boston.
The forms OF contracts, notes, certl'
1cates, assignments, etc. are now
being prepared by attorneys, and IL Is
expected that money will be available
for loans within Is days, probably I'M
mediately following n meeting or the
chairmen OF the state committees
The state committees will appoint
local committees in sufficient number
to facilitate and safeguard the pracu-
rlings OF the plan. The plan
The fund is distinguished by Its
operation az n pool OF many lending
and borrowing interests, and by the
length of time that the contracts VIII
run. Loans are made for one year
though they may be paid sooner Or
the other hand. the Central Committee
has the right to hold the contributors
10 the fund an additional six months
after the first year, II conditions, II
their opinion. justify.
II has been generally considere'
that the cotton fund will not all b.
applied for. The amount to be USED
however. must be determined by tn
first day OF next February, becaus
the subscribers to the fund will be re
leased on that date for the balance no
applied for.
II is understood that red tape an
undue formality will be eliminated a
much as possible in the handling
the fund.
Explanation of the Plan.
The following Is brief explana'lo
OF the plan for the beneht OF cotto
owners and bankers:
Loans will not be made on lots
less than 100 bales, except In parac
lar instances.
The farmer, the merchant and 9th
cotton owners in any state may app
10 his bank for loan on cotton 10
paid within one year after February
1918. with interest payable quarter
st the rate of per cent per annum
The loan may be paid and the sec
itv released at any time during I
wear. after the borrower gives 80 ia
written notice, and upon payment
interest to the end OF the quarter
AS security for the loan, the borr'
or will offer cotton valued at
cents per pound for "middling' gra
Adjustment to be made for all graz
above "low middling."
The margin of security VIII pc
nor cent. so that for loan OF S5'
the security would be 12O bales OF
ding cotton, with little less secu'
for the higher grades. and little IN
.ocuri,v for the grade or two lowe
From the proceeds OF the loan' u
per cent will be turned into the
TON Loan Committee in New YORK
ouorantee against loss from any ca
Exnenses of administration, which
not exceed Is of 1 per cent, VIII
maid from this fund.
7, should be remembered that
services OF every one connected
the pool except clerical, legal ana
rical are given without charge. III
fore n the pool is administered
ont loss. as expected, the guara
end vii, he returned prorata to
borrower. o.
From the example loan OF :
there would be deducted for the
ontee fund $50, or 90c bale on
ho,as NJ cotton. The net proceed
the loan to the borrower would d.
e1o. The bruks are not allowed
charge any commission or other
The cotton of course must De s
in n safe place in the CUSTODY
warehouse,aen other than the
rover or tho banker. The grade
no established to the satistaclie
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Cotton Belt Employees O'VIoe'
st. Louisa vote to strike mas
.don,ed nv the conductors and