Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-27
WANT MILLION DOLLARS
FROM LOCAL BANKERS
To Aid in Formation of S135.O 600.
600 Pool for Relief of Cot
ton Situation.
War and Trade-New York Banks
Misunderstanding on Security
Values on Loans.
BY I. A. FLEMING.


Washington bankers will asked to
contribute 100000 as their share of
the cotton pool being raised for the
benefit of southern banks who are tied
up with cotton loans.
This pool will be handled by w. L. G.
Harding. p. NJ. Warburg. Col. +. NJ.
House. A. H. Wiggin. J. S. Alexander.
James B. Forgan. Festus J. Wade. L. l..
Rue and w. A CASTOR. members of the
federal reserve board and leading
bankers. There will be two classes to
this loan-class A and class r. Banks
from out of the cotton states known
as class A will contribute 100000, 900.
Banks in the south known as class Il
when making inquiries for loans shall
subscribe to the pool 25 per cent of
the loan desired with the application,
and also per cent. which will be held
as A guarantee fund. The fund will be
closed February Is.
New York banks have EXPRESSED A
Willingness to contribute $4,000. oo0.
and 1t is expected that allotments will
be made to other banks by the cotton
committee, composed OF the federal re-
serve board and number of the lead
ing bankers and fianciers of the coun-
try.
Just whether the reception accorded
to the cotton pool will be unanimous
as 1t was to the gold pool remains To
be seen, but it is quite likely that some
OF the bankers may offer objections.
Naturally. the bankers of the cotton
growing states will not be called upon
for aid. Indeed. they are beneticiaries.
the ones to be saved more than the
cotton planters themselves.
1t is likely that the contributors to
the cotton pool will be allowed an in
terest charge of per cent on theii
money to be assessed against the Dor
rowerS, but there does not seem to be
any chance for profit in the transac-
tons
New York bankers, the target fol
much of the innuendo and plair
charges, the backbone of the so-calleG
money trust. arraigned in Congress:
and generally abused. have been very
plainly recognized by the administra-
ton in the various relief measures il
which they have been invited to par
ticipate, and they have responded gen.
erously.
The burdens of New York bankers al
this time are very seriously contempiat ed,
With the definite crop plan before they
now figure the problems that they VIII
have to care for before seeing much day
light at S270,000,000, distributed as fol-
lows: Clearing house certificates. $4o,-
O0O, 900; emergency currency notes, $780,
000, 900; foreign exchange obligations. in
GLIDING amounts still due on gold pool
$35, 900, 900; cotton pool. New York S share
100000. These enormous sums are
and will be met at maturity at the usual
manner Of New York bankers.
War and Trade.
Just how much the command of the
sea means in the maintenance of COM
mercial prosperity has been demon
strated again in the statement just is
sued by the Department of Commerce
an alysis of the September trade
movement with foreign countries. These
figure indicate plainly the loss oil
business to warning nations, ami es-
pecially the loss to Germany, Belgium
and Russia.
Imports for September. 1914, from
Germany were valued at S2,732.302
while for the same month in 1913 tney
were valued at $1S.s09.555; France sent
S5,S17,573 value of goods here in Sep
TENDER, as compared with S15,SS3.924
value in September, 1913 Russian ex-
ports to the United States were S314.-
S54, as compared with S2.3I9.322. while
Belgium exported to US $4,000, as
compared with $4.419,000.
The United Kingdom sent us $32 LAG.
275 worth of goods last month. as com
pared with $25.3sS.34o in September
1918.
On the export side Germany bought
from us in September but $3.50 worth
of goods, a fraction of the $34, 789.627
representing the value of our exports
to her during September. 1913. while
Belgium took STAT, 500 worth. as com
pared with s4.7"s.l74 of the same
month last year. France. on the con-
United States by S.,5oo.oo0. Russia $
imports are valued at s217.3s5. COM
pared with S2,u3U,715 in September,
1913. The United Kingdom was buy
pared with s5O.45s.24s. which is an eN-
cellent showing when it is considered
that the usual great cotton purchases
in September were not made
Based on July 80 Values.
Controller of the Currency J. Skel-
ton Williams is reported to be consid
ering a definite announcement of inten-
ton to permit banks to carry securi-
ties deposited on collateral loans on
the basis of the prices current on the
exchanges as of July 30. He made the
statement today that no hard and fast
ruling had been made, but that he had
instructed examiners, verbally, to rec
ognize these prices, less the usual 20
per cent margins.
There is no especial danger in this
RULING, as there has been few shrink
ages in actual values that would i'm
pair their value on this basis
Mr.. Williams explained that the de-
partment continues to exercise it's dis
erection in regard to loans on collateral.
In any case where it is convinced that
there has been real depreciation since
the New York exchange closed. and
where the borrower is able to meet
call for additional margin, a demand for
further security probably would be
made. and value less than last quoted
placed on the original collateral
In the opinion of some Treasury Off
Gals recognition of Kew York closing
prices will probably operate to the bene-
fit of the banks as well as the borrow
ers on securities. 1t was explained that
it long has been the department. policy
to recognize closing prices in passi Z
upon collateral loans, and continue
ton of 1t at this time may give con-
fidence In financial circles.
Real Issue in Rate Case.
Some of the counsel for the shippers
in the pending rate case at Washington
seem to be laboring industriously to