The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1915-01-05
TOTAL IS S135,000,0 900
Chairman Joseph g.. Brown, of
The State Committee, Re-
Ceives Notice and in Detail
Gives Explanation of The
Plan Under Which Loans On
Cotton Can Be Obtained

The Cotton Loan Fund of S135.00O,-
900 under the control of the Federal
Reserve Board is now ready to be
operated. This NEAR that wherever
it is desired to secure loans on cot
ton the way is open to secure these
loans.
The formal notice hat the fund is
ready 10 be used was received yeSter-
day by Mr. Joseph G.. Brown. of Raj
eigh. chairman of the State committee
having the matter of the cotton loan
fund in charge in this State. This
notice, which came from the Central
Committee, was that all subscriptions
Cor the $4,000. 600 cotton oar fund
had been formally signed up hat the
Gun is now operative and the COM
mittee ready to receive applications
for loans.
The fund is under the control of
the Federal Reserve Board, and ap-
plications for loans from it can be
made through the local banks to the
state Committee. The following in
formation concerning this cotton loan
fund Of $4,000 900 has been fur
nished by Mr.. Joseph c. Brown, h
chairman of the State Committee:
Details of Cotton Loan Fund.
THE voluntary bankers pool, or
tg 80 ~ - liAcIASy oh ~
ton, has been completed, and that
FUND is now available. One hundred
million dollars have been subscribed
by bankers outside of the cotton
states. The balance Of the fund, $33.-
1888, is TO be taken by local banks
IN the South, through which applica-
tons for loans may be forwarded, but
only as such applications are made.
The owner of cotton may apply
through his local bank for a loan to b.
paid within one e from February
l, 1915. The loan will bear interest
at the rate of s per cent per annum
payable quarterly. Unless otherwise
ordered, no applications will be re-
ceived after February l, 1915. Cotton
offered as security will be valued at
six cents per pound 'middling' grade
Margin required, 20 per cent, or
say, for a loan on 100 bales of cotton
warehouse receipts for 100 bales would
BE required. The cotton must be thor.
oughly identified, certified to be in
good condition, and not exposed t.
weather.
Warehouse must be approved b.
. local committee, and of such char
acter that the bank which forward
che application will be willing to war
rant their validity. No loans made OF
totton stored in borrowers own ware
house.
With the application, the ban
must forward it's check on~New Yorl
tor one-fourth of the amount Of tn
loan applied for, as a subscription t
the syndicate fund, for which the ban.
VIII receive a class b certificate bear
ing b per cent interest. These certif
rates will be transferable and probabl
available for ~rediscounting.
Inc bank must guarantee prong
IN of interest, warehous
charges, costs of insurance, etc.
Nhen application is approved b
me local committee, it will be fol
Warhed To the chairman of the Stat
committee, II after approval by tn;
committee, it goes to the office of tf
.otton loan committee in New York fl
'helf approval, upon which to chez
VIII De forwarded for the proceeds.
lhree per cent of the amount
ne loan will be retained by the CO
Ton Loan Committee as a g~uarant'
against expenses and possible losse
" Is eStlmated that expenses will n
De more than one-eighth of one q
cent, and that the loans will be
carefully Safeguarded as to prove
loss. The local committees are urg,
10 exercise the utmost care in placil
IoanS. No loss should be possible
North Carolina.
The Cotton Loan Committee G
nects loans to be recommended on
when the members Of the Local
state committees have obtained Su
'lent information with respect to
particular applicant to convince the
mat he is a man of business int
rlty; that, in addition to the Securi
me obligation represented by his NC
Is OF value, and that he has establish
4 reputation for honesty and f;
Iealing. In other words, It consid,
that the fund has not been establish
ior the purpose of practically buyi
cotton at the price stipulated, but
order 70 relieve the necessities of G
t0n owners who, with respect to be