Little Falls herald., 1914-10-16
10000, 600 FUND APPARENTLY
MADE CERTAIN BY PLAN PER.
FECTED BY PLANTERS AND
NEW YORK BANKERS.
Federal RESERVE BOARD
IS TO DIRECT LOANING
Secretary McAdoo Said to Have Ii
dorsed This course-New York
Financiers to Subscribe 5o,0oo,-
600 Upon Condition That
Country Take Remainder.

New York, Oct. 15.-The raising of
a $150,000,00O fund by bankers and
representatives of Southern cotton
planters to finance the country's cot
ton crop is virtually assured, it is an
nounced here, and the federal reserve
board at Washington will be called
upon to manage the fund and direct
the loaning of it.
New York Raises $5o,00o,000.
New York bankers at a conference
with cotton planters representatives
here during the day, agreed, it is stat
ed, to furnish s5Q,00O,00o, if the rest
OF the county would supply $1O0,OOO,-
900 or more under conditions agreed
TO at the conference.
Festus J. Wade, president Of the
Mercantile National bank of St. Louis,
and member of the st. Louis Clear
ing House association, issued state
ment announcing the plan. Mr.. Wade
said that "the task put upon the fed
eral reserve board, while onerous.
was readily accepted by Secretary
McAdoo, who recognized the gravity
Of the situation" .-4
Mr.. Wade attended the conference
and later went to Washington to dis.
cuss the plan with members of tho
federal reserve board. Several prom.
fnent st. Louis business men, who
came to New York With Mr.. Wade.
accompanied him to Washington.
A Definite Conclusion.
Mr.. Wade set forth that, definite
conclusion was reached between the
st. Louis committee and New York
bankers.
by the action of the New York
Snnkers," the statement says, lit may
be safely assumed that the fund. un-
doubtedly will be raised within the
next few days.
The difficulty encountered was to
determine how the syndicate could be
managed and money loaned at the
least possible expense to the borrow
er, and after many conferences and
telephone communications between
Washington and New York it was
finally concluded to turn over the en-
tire fund to the federal reserve board
at Washington, who would act as man
ayers Of the same and direct the
loaning of the fund. The outline OF
the plan agreed upon is as follows:
The Plan in Brief.
Organize $150,OO0,000 cotton fund
throughout the United States, which
fund shall be turned over to and man.
aged by the federal reserve board at
Washington and loaned to the ma
tional currency association or to the
federal reserve banks. All loans to
be made payable on or before one year
at the option of the borrower, with
the right to the federal board to ex-
tend any or all such loans made for
two periods Of six months each, In.
terest on such loans to be at the rate
Of 6 per cent per annum.
"All loans to be made at not to ex.
ceed 6 cents per pound, middling ba-
sis, to be secured by approved ware.
house receipts for cotton property In
sured
Fund Called For AZ Needed.
The fund to be called for by the
federal reserve board in such INSTALL
ments as may be necessary.
New York financial institutions
will subscribe $50, 0,000, 900 under above
conditions toward such fund, pro.
vided the balance Of the country sub.
scribes not less than $100,000.0 900.
Tho details are to be worked out
by committee to be appointed by
the federal. reserve board which will
unquestfonably have the support Of
every part Of the country.
1T is recognized that the caring fo7
the surplus cotton crop IL national
problem, one which interests al
manufacturing industries commercial
establishments, agricultural resource