The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1914-10-26

AGREEMENT
IS REACHED
RESERVE BOARD VIRTUALLY AP'
PROVES COTTON LOAN PLAN
FUND TO BE ONE-HUNDREO
THIRTY-FIVE MILLIONS.


of negotiation between bankers anC
federal reserve board members, ten
I tative agreement was reached Satur
day night, when the board virtually
approved ap Ian by which a fund OF
sl35, 10000 will be raised to care fol
the surplus cotton crop and extend
aid to cotton producers. The plan is
slightly different from that originally
proposed, but loans will be made on
cotton at &c a pound bearing interest
of not more than 6 per cent for one
year, with a privilege of six months
| extension.
The reserve board will have direct
supervision of the fund, but probably
will operate through a committee of
bankers and business men. All de-
tails of the plan were not made public
tonight.
New York bankers have agreed to
subscribe $5O,OOO,OOO to the fund and
southern banks are counted on for $35-
| 00O 900 more. The remaining 10000
900 is to be raised in non-cotton pro-
ducing states.
Secretary McAdoo outlined the plan
tonight in the following statement:
McAdoo's Statement.
"The federal reserve board today
continued consideration of plans for
relief of the cotton situation, giving
| special attention to a plan suggested
by Albert II. Wiggin, J. E. Alexander,
A. j. Hemphill and William Woodward
of New York and Festus j. Wade of
st. Louis for the raising of a cotton
loan fund aggregating $135,000 900.
This plan has been evolved from that
originally proposed by Mr.. Wade. Full
details can not be given out until it is
submitted to bankers in leading finan-
cial centers to ascertain whether or
not they will support. 1t has been ap-
proved tentatively by the federal re-
serve board and bankers in the lead
ing financial cities will be asked i'm
mediately to subscribe the necessary
amount New York City bankers have
agreed to subscribe $50,000,00O upon
condition that an additional $50, 900, 900
shall be Subscribed in cities in non-cot-
10, ,tn 10. nj
S35 100000 is to be provided by the
cotton states.
lending of money on cotton at &c
pound and at an interest rate not ex-
year, with a privilege for a renewal
for an additional period of six months
1t is provided that all services render
ed in the administration of the fund
by voluntary committees and bankers
shall be without charge, but that the
borrowers shall pay 3 per cent on the
amount lent to them into fund which
is to be called the guarantee fund and
which is to be used exclusively for
paying of the necessary expenses of
administration, which, it is expected !!
will not exceed one-eighth of l per !
cent, and the remainder to be used to
make good any losses which may be
incurred on loans that may be made |
on cotton at the stipulated rate of &c
per pound Upon the conclusion of
the whole transaction the amount of
money left i'm the guarantee fund will
be returned pro rata to the borrow
ers.
1T is hoped that responses may be
received from the bankers of the lead
ing cities early next week. If favor
able the plan will be put into immedi-
ate execution. In that case the cotton
loan fund will be administered under
the general supervision of central
committee of the individual members
of the federal reserve board, which
committee of the individual members
mittee to be known as the cotton loan
and which will have actual
of the fund.
The plan in its new form is more
practical than anything heretofore pre-
sented. and it is hoped the requisite
amount may be promptly subscribed
that the plan may be put into imme-
date operation"