Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1914-11-04
$4,000 COTTON LOAN FUND
Federal Reserve Board Outlines Plan-Loans to Be
Made at 8 Per t-Non-Producing State to
Furnish rs Per Cent of the Loan Fund

Washington, Oct. 27.-Full details
OF the plan for $135, 100000 loan
fund to take care OF the surplus cot
ton crop were made public tonight
by the Federal Reserve Board. The
boards outline Of the plan was sent
to clearing house associations
throughout the country. Responses
are expected before the end of the
week and officials were hopeful to-
night that the plan would meet with
sufficient banking support to make it's
adoption certain.
The outline differs only in detail
from the previous announcements OF
the board. The fund, it shows, is to
be administered under direction OF a
committee to be known as the CEN
tral committee, to be composed Of
the individual reserve board men,
bers. Actual administration of the
fund will be under "a cotton loan
committee"
Glasses of Subscription.
There are to be two classes OF sub
scriptions. The first, known as
Glass A, will aggregate $100,00O,0 1000
and will be raised in non-cotton pro-
ducing States. Glass B subscriptions
are 10 D6 DduhS pl DdHkeIS
in cotton producing States.
Applications for loans must be sub
mitted to State and local CON mittees,
which are required to approve them
and make them through banks or
bankers. Applications must be ac-
companied by subscriptions to Class
b amounting to 25 per cent Of the
loan requested, so that non-cotton
O. ipi WI
loan rs per cent and cotton States
25. Every subscriber will receive
certificates OF participation, which
shall be transferable on the commit
tees books and bear 6 per cent in
terest.
Loans will be made on notes at 6
per cent with warehouse receipts for
cotton as collateral, on the basis of
cents per pound for middling. All
expenses for warehouse and insurance
charges must be borne by the bor-
rover. A guarantee fund is to be
created by deductions of 3 per cent
from the. face value Of all loans,
which will be used also to provide
funds for the payment of expenses of
administration, estimetad not to eX-
ceed x of l per cent Of the fund.
bclofe FeDFutFy L.
All applications for loans must be
made before February /, 1915. The
loans will have a maturity of one
year with promise o. renewal for
six months on approval OF the central
committee.
In the repayment of subscribers to
the fund the Glass A certificates will
be taken care Of in proportionally
larger degree until the outstanding
amounts of each class becomes equal.
, 1T is proposed to create in the
manner hereinafter provided fund
of approximately $135, 100000. to be
known as the cotton loan fund and
to be used for the purposes herein
stated. Subscribers to this fund shall
be divided into two classes. to be
designated, respectively, as Glass A
and Glass B subscribers. Glass A
subscribers shall consist Of banks and
other corporations, firms or individ-
uals located or residing in other than
the cotton producing States of Ala
bama, Arkansas, Florida, Georgia,
Louisiana, Mississippi, North Caro-
lima, Oklahoma, South Carolina, Ten
nessee and Texas.
Class \ Subscriptions.
"All Glass A subscriptions shall be
contingent upon the receipt of sub
scriptions Of that class aggregating
500, 900. Glass subscriptions
shall be made by banks or bankers To-
Gated or residing in the cotton pro-
ducing States above mentioned, and
as hereinafter more particularly eA-
planned No Glass b Subscriptions
shall be required EXCEPT as a cOndi-
ton OF loan or loans to be made out
Of the fund to be created, and in such
event subscriptions shall not be re-
quired to exceed % per cent of the
amount Of the loan applied fer.
Each subscriber shall, upon the
payment, in whole or in part, Of the
amount subscribed for, receive a par
ticipation certificate. transferable on
the books of the committee, showing g
on its face the class of subscription
represented thereby, and specifying
the terms under which the owner
will be entitled to share in the dis
tibut:oh OF the moneys realized from
the loans made from the fund Gre
ated.
''An Glass A and Glass b certifi-
Gates shall bear interest at the rate of
6 per cent per annum, payable quar-
terly.
Administration.
THE cotton loan fund will be ad-
ministered under the direction OF a
committee, to be known as the CEN
trail committee, and to be composed
of the individual members OF the
Federal Reserve Board. The central
committee shall appoint a commit
tee for the general administration of
the fund, to be known as the cotton
loan committee, and shall delegate
such powers to such committee as
may be necessary to properly carry
out the PURPOSES of this OIan