New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-25
$5O,OOO,OOO HERE
FOR COTTON POOL
Rest of Country Is Expect
ed to Yield S75,000,000
More This Week.

Gu W 1lClu pfO,UOV,UVV
More This Week.
From The Tribune Bureau
Washington, Oct. "a The first step
in the solution of the cotton and inter
national exchange problems was taken
to-day by the Federal Reserve Board,
which tentatively approved the plan
proposed b. several New York bankers
and Festus j. Wade, Of St. Louis. for
raising a cotton loan fund sggregating
Sl35,000,000. The plan will be sub
mitted 20 the bankers of the country
at once. The contribution of t9e New
$50, 900 900.
1t is expected that IL this project is
carried out it will have theI effect Of
stabilizng the price OF cott5n and re-
suit in the resumption of export trade
to England TO certain extent. and
possibly the reopening Of the cotton
exchanges in both cour tries.
The outlook for the marketing OF
cotton cleared perceptibly not only by
reason OF the tentative agreement to
establish this loan fund. but also by
reason of the fact that a sl00,0O0,O0O
fund may be raised in England for the
purchase of American cotton. A sug-
gestion TO this effect was discussed by
the conference on the international
exchange situation, and the intimation
was made by the English representa-
tives that il might be possible 20 or
g. anze such purchasing pool in their
country.
The committee Of The Federal Re-
serve Board and New York bankers,
which conferred again to-day with Sir
George Paish and Basil Blackett or the
subject of international exchange,
failed 10 reach a conclusion, and sus
pended its labors until Friday. In the
meantime. further information concern
ing the exchange situation and the at
titude of New York bankers will be OBJ
tanned.
The two problems being closely inter
woven, the raising of the cotton fund
may clear the atmosphere TO such an
extent that it will be unnecessary to
resort TO unusual methods TO settle the
balance Of S200,000.000 which will be
due England on maturing American
obligations between nov and Janu-
airy 10.
Reserve System Opening.
The opening of the reserve system,
which also has an important bearing
upon international problems, was dis
cussed to-day by the Federal Reserve
Board. which decided TO leave the ques-
ton to Secretary McAdoo. Mr.. Nc
Adoo has already suggested November
Is for putting the system into opera
ton, and il is assumed he will fix the
date as near that time as possible, al
though the reserve directors recon-
mcnded November 80. A. soon as the
reserve system is established approx
mately s260,000,000 in gold will be re-
leased by reason of the lower reserve
limit. This, with the amounts which
will have been raised by that time, will
place American bankers in much bet
ter position TO pay foreign obligations
promptly.
Secretary McAdoo said tonight:
"The Federal Reserve Board, at its
meeting to-day. continued consideration
of the plans for the relief of the cotton
situation, giving especial attention to
plan suggested by Albert II. Wiggin,
J. S. Alexander, A. j. Hemphill and
William Woodward, Of New York. and
Festus j. Wade, of St. Louis, for the
raising of cotton loan fund aggregat-
ing $l35,000.000 This plan has been
evolved from that originally proposed
by Festus j. Wade. The full details
cannot be given out until it is sub
mitted TO the bankers in the leading
! financial centres, in order to ascertain
whether or not they will support It.
at has been approved tentatively by
/ the Federal Reserve Board, and bankers
in the leading financial cities will be
az ked Immediately to subscribe the nee
essary amount. The bankers of New
York City have already agreed to sub
scribe So0,000,000 upon condition that
an additional $50,000,000 shall be sub
| scribed by cities in non-cotton produc-
ing states. The remaining $4,000, 900
is to be provided by the cotton states.
Details of the Plan.
"The new plan contemplates the
/ loaning OF money on cotton TO borrow
I ers at six cents per pound and at a
rate Of interest not exceeding 6 per
cent for a period OF one year, with
the privilege of renewal for an ad-
ditional period Of six months. II Is
| provided that all services rendered in
I the administration of the fund by vol
untary committees and bankers shall
be without charge, but that the Dor
I rowers shall pay per cent on tho
amount loaned to them into d fund
| which is TO be called the guarantee
/ fund, and which is TO be used exclu-
/ sively for paying the necessary ex-
| penseS of administration, which il ia
/ estimated will not exceed one-eightb
! Of per cent, and the remainder 70 be
! used to make good any losses which
may be incurred on loans that may be
made on cotton at the stipulated rate
! Of 9 cents per pound. Upon the con-
clusion OF the whole transaction the
amount of money left In the guaran-
/ tee fund will be returned pro rata 20
? the borrowers.
at is hoped that responses may be
received from the bankers of the lead
/ ing cities early next week. II thew
are favorable, the plan will be put into
/ immediate execution. In that case the
cotton loan fund will be administered
under the general supervision of a
central committee 20 be composed Of
the individual members of the Federal
Reserve Board, which committee
3 will. in turn, appoint a committee 70
I be known as the Cotton Loan Com
mittee,' which will have the actual
management of he fund.
"The plan in its new form is more
practical than anything heretofore
presented, and it ia hoped that the
requisite amount may be promptly
subscribed in order that the plan may
/ be put into immediate operation"
Kempner Estate Put at 81, 900
/ Chief Magistrate Otto Kempner, who
died early this month, left an estate Of
81 600 according 70 q nefifinn for the