The Birmingham age-herald., 1914-08-26
Warehouse Receipts for Staple Will Be Accepted by the Treasury Depart ment as Security
PRICE OF COTTON MUST BE FIXED
 BY NATURAL LAWS
Warehouse Receipts Need
 Not Be Bonded-Confer- ence Adjourns-Satisfac-
 ton Felt Over Outcome
Ny C. F. STEWART


 Washington, August 25.-(Special) First vetoing all suggestions for val0rizati0n of, crops on account of the war in Europe. Secretary McAdoo today gave the delegates 10 the cotton conference the following foundation on which to perfect plan for carry ing the crop through the period of stress:
 Warehouse receipts for cotton will be accepted by the treasury as security rather than as commercial paper for emergency currency issue Any issue of currency by state banks is consid- cred utterly unnecessary" The price of cotton must be fixed by natural economic laws and estimated for loan purposes in transactions between banker and grower. Indirectly, state banks may be permitted to share in the issue of emergency currency with national banks to the full extent of the needs through the workings of an inevitable economic law.
 Important Point
 Probably the most important point in this combination of features $ the &C., ceptanco of warehouse receipts as secur- ny. in contrast to a dcfination as com mercial paper As commercial paper they would have come under tho au per cent restriction as collateral for currency is- sue; as security they will come under the 70 per cent provision: nor need the warehouses which issue receipts he bonded. All that is asked by the treas- ury Is that adequate protection for the cotton be given. including inc proper insurance.
 From general talk and discussion of the subject, 1t appears that cents q pound may be recognized as a fuir salua-1 ton nwhich to base loans from the treasury. through the banks, Ia the pro- ducers. Whether this will tide all. or even q majority, through the period of inac- tivity remains to be seen. Belief pre- vails that domestic splnncrs will be in the market in % days and that Europe also will take supply ere long.
 Names Committee
 Having laid down the basic principles for solution of the problem. Secretary McAdoo named the following committee to work out the details;
 Producers: C. s. Barrett. Union City, Ga; r. M. Coker, liartsville. $. G.; J. o. Thompson. Birmingham.
 Manufacturers: C. Guncy Jordan. Co., lumbus. Ga.; D. Farnhali Greene, Boston, Mass; Lewis w. Parker Greenyille, $. C.
 Bankers; A. II. Wiggin, New orlS city; Royal A. Ferris. Dallas. Tex: Esths J. Wade. St. Louis. Mo.
 Warehouse and transportation: S. T. Morgan, Richmond, Va. Harry Walters. New York city: B. L. Mallory, Memphis. Tenn.
 Tobacco: D, Y Cooper. Henderson, \. C.; William Elliott, Henderson, .y.; F. c. Ewing, Cedar IIil Tenn
 Commercial interests: w. D. Thompson. New orleans Richard P lldmonds. Balti- more; R. Goodwin Rhett, Charleston S c.
 Theodore II. Price of New York city was appointed secretary of the committee.
 Harding Named
 Representing the government and for the purpose of co-operatiue as far as with the conmittpe Secretary AIcAdoo designated for the treasury de- W r, c. Harding of the fed- eral reserve board. and C. J. Brand. chief of office of markets and ]. M. Carver,
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