The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-30
Secretary of Treasury Says
Problem Is "Of Most Ur-
gent Character"
WRITES TO CHAIRMEN
OF CLEARINGHOUSE
Imperative That Intelligent FL
nancial Measures Shall Be
Immediately Adopted.
RESERVE BOARD WILL HELP
Approves Plan for Raising $685.
100000 to Be Loaned
TO South.

W.tSHINCiTON. October 29.--Secre-
tary, McAdoo tonight made public
letter he has sent TO clearing house
chairmen throughout the country. urg-
ing support OF the .l35, 100000 cotton
loan fund He said the cotton situa-
tion. presented problem "of the most
urgent character" and disclosed his
conviction that prompt silhscription OF
the loan fund would be productive of
Immensely beneficial results" The
contemplated acceptance of subscribers
Z certificates as n basis for emergency
currency Issued. lie added. should
greatly facilitate the banks I'm making
and taking care of their subscriptions"
More replies favorable to the loan
fund plan reached the Federal Reserve
Board to-day, but members of the boa r,i
pointed out that liquidation by clear
ing g.houses and then by Individual
banks might not get any final action in
Tue matter for several days.
Secretary McAdoo's letter to clear.
ins.housc chai-men follows:
Tic cotton situation In the South
presents a problem OF the most urgent
character. IL is Imperative that some
Intelligent financial measures shall be
immediately adopted to relieve that
sifuation. The problem is not local
bnt national. because II serious hurt to
the south affects the entire country
TO help the South In thts emergency
must appeal, therefore. not oniv to our
better Instincts, hut also to our ma
terial tntePests. Governor llamlin. OF
the Federal Reserve Bonrd. has sent
yous "a letter to-day, together witt, n
pan, which the board has approved
Tor raising fund Of Sl35. 100000 40 be
loaned on cotton. 1t Is our firm belief
that the prompt subscription Of this
iund and It's use as proposed Ia the
plan Will be productive of inmenscIy
beneficial results.
IMPORTANCE oE PROMPT
ACTION Is URGED
earnestly urge upon you the i'm
portance Of the banks In your city and
r.Sour Federal reserve district prompt
iy subscribing the amount allotted To
you. New York has already led of
with s50.o00.000 subscription. and [
sincerely hope that there may be no
doubt whatever about the raising OF
the remaining s50o0O.00O In the other
leading financial cities of the country.
! am sure that We may confidently
count upon the loyal and patriotic sup
port OF the bankers of your city in this
emergency. The Federal Reserve
board itself. Notwithstanding the
onerous, duties which now devolve upon
IT In the organization of the Federal
reserve system. has nevertheless con-
sented to constitute itself n voluntary
committee for the purpose of super
vising the administration OF the pro-
posed fund. because of the seriousness
OIL the emergency and the necessity for
unselfsh service OH the part OF every
citizen who wants earnestly to help
his country.
I'm order to assist the banks which
may subscribe to this fund. desire to
say now that, in the exercise of the
power and discretion vested in me by
law. ] shall. upon compliance by the
banks with the terms and provisions
Of the Aldrich Nreeland act, as amend
ed. accept the class "a certificates re-
ferred to in this plan as securities at
i5 per cent of their face value as a
basis for issues of so-called emergency
currency when presented to me through
national currency associations This
should greatly facilitate the banks In
making and taking care of their sub
J, scriptions.
''Will you be good enough to tele-
graph me on receipt of this letter II
we may count upon your co-opera-
tion?p
The secretary said that in order to
help the Southern banks which may
subscribe for class "B'' certificates, he
had determined to accept them also
as Securities" as a basis for the issue
Of emergency currency