Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-09-03
PLENTY OF COTTON MONEY
IN LOCAL RESERVE BANK
Governor Seay Issues Bulletin Assur-
ing Members That Funds VIII
BE Abundant.
SHOULD PREVAIL
Bulletin Declares Present Emergency
In Cotton States Has Again DEM
Onstrated Value OF Membership in
Federal Reserve System.

Member banks of the Fifth Reserve
District doing business in cotton sec
tions are given positive assurance in
Il bulletin issued Yesterday by Gov
ernor George J. Scay, OF the Richmond
Reserve Bank, that the local institu-
tion Will supply funds in abundance
for the discounting of paper based on
warehouse receipts attestinG the safe
storage Of the staple.
Many banks have written to us ask
ing the limit to which this bank will
20 in extending to them the aid de-
manded In their laSalitics." said Gov
crnor Seay. ITO be effective the aid
extended must be adequate If NOM
Der banks Will perform the part re-
CURED of them, as outlined in our cot
ton circular of August .. funds for the
purpose Will be abundant and avail
able. feeling of entire confidence
should prevail in every locality.
OWNERS ASSURED THAT
LOANS CAN HE OBTAINED
speculation in cotton on the part of
farmers or others but to enable mem
Der banks to assure owners that loans
can be obtained in small largo
amounts in order TO prevent the ne
cessity OF having To. force cotton upon
the markets to pay debts and pro-
vide for needs. when reasonably
normal market does not exist, or when
there are no buyers for it except at
ruinouS prices. This action Is in the
interest not alone of cotton producers
but OF the entire community affected
thereby.
We think II proper and just to
fer with emphasis TO the fact that
within a very SHORT period n second
emergency. this time moro local in Its
nature, although wide OF extent. has
again demonstrated the value OF mem
hership in tho Federal Reserve System,
and the closcncss OF relation between
the Federal reserve bank and the NOM
her banks and their customers"
PREPARES DIGEST OF
WAREHOUSE LAWS
The Richmond Federal Reserve Bank
has prepared n valuable digest of the
laws OF Virginia. North Carolina and
South Carolina, relating To warehouse
receipts having particular reference to
the storage OF cotton. 4 digest or the
regulations in force IN these three
States--the cotton States OF the Fifth
Reserve Districts presented In the
banks latest bulletin. which has been
mailed to all members
In the letter containing the bulle-
tin was Enclosed an acceptable form OF
warehouse receipt which the ware
houses Of tho three states arc urged
10 adopt as a model II is pointed out
that tho use or uniform receipts will
facilitate rediscounting. The form
that is suggested Is adapted to the uSo
of all persons and corporations in tho
three States acting as warchouscmcn,
and with slight alteration, Will an
swcr for any commodity.
DESIRABLE THAT RECEIPTS
DE ACCEPTABLE COLLATERAL
while the form Is offered only as
a suggestion" the bulletin continues,
land without prejudice to forms now
In use and accepted by member banks,
II is we'll 10 state here that many ware
house receipts which accompany paper
submitted to us arc lacking In Ger
tain features required by law and are
so informal In appearance and so caro-
iessly made out as to raise natural
doubt in the mind OF the holder whether
the commodity involved is properly
handled and cared for; and having re-
gard only to the value of the property
offered MS collateral, such documents
making transfer OF title thereto, do not
inspire n proper sense OF security In
the lender.
1T should always he borne in mind
by warehouscmcn that these receipts,
when negotiable. may have n currency
far beyond their place of issue, espe-
cially under present conditions. 1t is
very greatly to the interest OF cotton
owners that cotton should be so stored
and cared for. and that the warehouse
receipt therefor should be in such form
as to make II acceptable collateral
under all circumstances wherever Of
fered.