The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-10-27
Cotton Loan Pool Will Proba-
bly, Be Completed In a Few
Days
Reserve Banks
Will Help Situation
Great Britain 8 Declaration That
Cotton Is Not Considered
Contraband of War VIII
Help In Marketing Staple

Washington. Oct. 2s.-By Friday
night at the latest. and possibly
sooner, 1t Is the expectation of mem
bsrs of the federal board that re-
plies VIII have been received from
the bankers who were asked in for
NAL communications forwarded today
whether they would Join in the si3h.-
100000 cotton loan. which was en-
dorsed by the board on Saturday. 1t
is expected by the board members
that the bankers in the North, West
and South. who have been invited
to make up the pool In varying
amounts. will accept. This Is said
to have been indicated In Informal
advices received at the treasury de-
partment today.
President Wilson struck an opti-
mistic note today In his comments
to callers at the white House in re-
gard to the financial situation gen.
orally, and cotton in particular. 1t
te understood that the Presidents
optimism over the financial situation
Is due TO advices given him that the
cotton situation Is in q fair way of
being substantially helped through
the formation OF the proposed $135.-
900, 900 pool The large release Of
reserves expected TO follow the rs
adjustment OF the federal reserve
system on November i6, will also help
the situation. and the note OF Great
Britain. formally presented to the
state department today, that that
power has not declared cotton con-
trahand. and that shipments OF It will
not In any way be interfered with ny
the British sea patrols Is also most
encouraging.
Presented BY British Ambassador.
This note Vas presented TO Coun-
seller Lansing acting secretary of
state. by Ambassador Spring Rice.
Following the receipt OF this note,
whose contents was at once con-
veyed TO the treasury department
Secretary McAdoo gave out state
merit in which he said that in view
of Great Brits ms attitude toward cot
ton shipments there was no reason
why underwriters who cover marine
and war risks insurance should now
hesitate TO issue policies en- eetten In
neutral bottoms.
The bureau of war risk Insurance
OF this department is writing insur-
ance freely on cotton when carried
in American vessels" said Secretary
McAdoo.
Following a meeting today OF the
federal reserve board Mr.. TcAdoo
sent telegram to the chairman OF
the board of directors OF the twelve
reserve banks formally announcing
the establishment of the new bank
ing system on November Is. In this
telegram Mr.. McAdoo expressed his
earnest desire to cooperate with
them in every possible manner.
Reserve Board In Session
The federal reserve board was In
session throughout the day. 1t was
engrossed with matters affecting the
organization Of the system. The state
ment was made by members at the
conclusion OF the conference that no
consideration had been given plans
TO adjust the Indebtedness of the
United States with Great Britain or
to the proposals for the relief OF the
cotton situation. Board members ex-
planned that the subject OF exchanges
would be given consideration later in
the week. and there was nothing for
the board TO do on the cotton ait
uat.on pending the replies from the
banks invited to make the loan.