The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-30
M AD00 ASKS AID
Of CLEARING HOUSES
Requests Them to Urge Banks
to Subscribe Promptly to
Cotton Fund.
4 NATIONAL NECESSITY

wAsuiNGroN. Oct. 20 Secretary Nc
Adoo has written the following letter to
the chairman OF the clearing house assoc
Citations Of the leading financial cities urg-
ing banks In the respective cities 20 sub
scribe to the proposed cotton loan fund
"rhe cotton situation in tho South
presents a problem OF the most urgent
character. 1t liz imperative that some
Intelligent financial measures shall he
Immediately adopted to relieve that situa-
ton. The problem Is not local. but ma .
tional, because a serious hurt to the
South affects the entire countra
"ro help the South in this emergency
must appeal therefore not only To our
better Instincts, but also to our material
interests. GOV. Hamlin of the Federal
Reserve Board has sent you letter to-
day together with plan which the
board has approved for raising fund OF
Sl35. 600. 900 to he loaned on cotton.
ut Is our firm belief that the prompt
: subscrlp,ion of this fund and its use as
proposed in the plan will he productive or
/ immensely beneficial results.
! II wish earnestly to urge upon you the
importance of the banks in your city and
In your Federal reserve district promptly
subscribing the amount allotted to you.
| New York has already led off with a
/ NbO,WNN,WNV SuDSNllptlbH anu . Tll''l'ls
hone that there may he no doubt what
ever about the raising OF the remaining
$50 OOO, 900 in the other leading financial
cities of the country.
II am sure that We may confidently
count upon the loyal and patriotic support
Of the bankers OF your city IN thls
emergency The Federal Reserve Board
Itself Notwithstanding the onerous duties
which now devOivr upon II in the organ
, lzation OF the Federal reserve system, has
never consented to constitute itself a
voluntary committee for the purpose OF
supervising the administration Of the pro
J posed fund because Of the seriousness OF
the emergency and the necessity for
unselfish service on the part OF every
citizen who wants earnestly to help his
country.
"Iu order to assist tho banks which may
subscribe to this fund desire 10 say now
that in the exercise OF the power and dis
erection vested in me by law | shall upon
compliance by the banks with the terms
and provisions q the Aldrich-Nreeland
act ms amended accept the class a certih
Gates referred to in this plan rs 'securi'
ties AZ 20 per cent. of their race value
as a basis for issues of so-Called 'emer
gency currency when presented to ms
through national currency associations
This should greatly facilitate tao banks
IN making and taking care OF their sub
sCriptions.
win YOU bc good enough to ielesrap,
me on receipt Of this letter II "" may
count upon your coopcraviong'
The Secretary also said that in order e
HELM the southern banks which may sub
scribe for class Il certificates he had de
termined TO accept class n certificates n
securities" as "A basis for the issuance o
so-called "emergency currency when pre-
scented to him through national currency
associations and upon compliance will
the terms and provisions OF the Aldrich
Nrpeland act az amended.
The Secretary further said that he WA
receiving encouraging assurances from
leading bankers Of tho North of the.l
support Of the plan.
The Secrethrys announc rnents are OK
pected to give "a decided impetus to sub
scriptions to the cotton fund and the!
come somewhat as surprise to person
who have not been well Informed ahou
the conferences OF Federal Reserve Boar
members and bankers which preccTlod tn
approval Of the wade plan by the board
The effect Of the Secretarys action vii
be TO place subscriptions to tho fund II
a decidedly more favorable light b. for
the bankers OF the country than woul
have been possible had the status OF TN
subscription certificates been less clcarl
established.