The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1914-10-16
THE PLAN TO RAISE
S150,O00,0O0 SUCCESS
Government Board to Dis.
tribute 1t.
COTTON LOAN ASSURED.
New IOrk's Agreement to Con-
tribute S5O.OOO,OOO Renders
COnsummatiOn Sure.

New York, Oct. 14.-The raising
OF a $15O,0OO,OOO fund by bankers
and representatives Of Southern
cotton planters to finance the coun-
try's cotton crop virtually is assured.
it was announced here tonight, and
the federal reserve board at Wash
ington will be called upon to man
age the fund and direct the loaning
of it.
New York bankers, at confer
ence with cotton planters repre-
sentatives here during the day,
agreed, it is stated, to furnish
s5O,OOO,OOO il the rest of the coun-
try would supply $1OO,OOO,OOO or
more under conditions agreed to at
the conference.
Festus j. Wade, president of the
Mercantile National Bank of St.
Louis, and a member Of the st. Louis
clearing house. issued statement
late tonight announcing the plan.
Mr.. Wade said that 1.-The task put
upon the federal reserve board while
onerous, was readily accepted by
Secretary McAdoo, who recognized
the gravity OF the situation"
TO TALK WITH BOARD.
Mr.. Wade attended the conference
and left at midnight for Washing
ton with the expectation, it is un-
derstood. Of discussing the plan with
the members OF the federal reserve
board tomorrow
Several prominent ST. Louis busi-
ness men, who came to New York
with Mr.. Wade. accompanied him to
Washington.
Mr.. Wade's statement set forth
that a definite conclusion was reach
ed today between the ST. Louis COM
mitteee and New York bankers
'By the action OF the New York
bankers" the statement said, lit
may be assumed safely that the fund
undoubtedly will be raised within
the next ten days.
THE difficulty encountered was
to determine how the syndicate
could be managed and money loan
ed at the least possible expense to
the borrowers" Mr.. Wade's state
ment continues, 'and after many
conferences and telephone communi-
, cations between Washington and
New York it was finally concluded
to turn over the entire fund to the
federal reserve board at Washing
ton, who would act as managers of
same and direct the leaning OF tie
fund. The outline of the plan as
agreed upon is as follows:
THE PLAN IN BRIEF.
Il. Organize 100000, 900
cotton loan fund throughout the
United States. which fund shall be
turned over to and managed by the
federal reserve board at Washing
ton and loaned to the national cur
rency associations or to the federal
reserve banks.
"2. All loans to be made payable
on or before one year. at the option
OF the borrower. with the right to
the federal reserve board to extend
any or all such loans made for two
periods of six months each, interest
on such loans to be at rate OF pei
cent per annum.
"3. All loans to be made on the
basis OF 6 cents a pound, secured by
warehouse receipts on insured cot
ton.
-. The fund to be called for by
the federal reserve board In such
installments as may be necessary.
"5. New York financial institu-
tions will subscribe $5O,0OO,OOO
under above conditions. the balance
of the country to subsribe not less
than $10O.0OO,O0O.
g.. The details are to be worked
out by a committee to be appointed
by the federal reserve board, which
unquestionably will have the support
OF every part of the country.
A NATIONAL PROBLEM.
1T is recognized that the caring
for the surplus cotton crop is a ma
tional problem, one which interests
all manufacturing industries. COM
mercial transportation companies,
agricultural resources and financial
interests. and which undoubtedly