The Washington times., 1915-08-20
NATIONAL BANKING
SYSTEM TO FINANCE
|COTTONCROP0 Of US.
Such Interpretation Is Put on
Remarkable Statement by
Comptroller Williams.

Expecting daily formal declaration by
Great Britain that cotton is contraoand
of war, the Administration is preparing
to throw the strong arm OF the national
banking system about the nations cot
ton crop.
This is the Interpretation here today
of a remarkable statement issued by
John Shelton Williams. Comptroller OF
the Currency and member OF the Fed
eral reserve board, describing the un-
precedented prosperity and reserves OF
the national banks.
The loaning power Of national banks
and the reserve banks, Mr.. Williams
says. Is sufficient to finance:
All of the cotton crop.
Half. IL not all. Of the wheat and
tobacco crops.
worth Of manufactured products and
food stuffs until such time as they
can be paid for in gold or its equivA-
lent.
Britain Determined.
That Great Britain has fully deter
mined to make cotton contraband is gen.
orally accredited in official circles. In
fact, 1t is understood that Great Britain
has informally notified the State De-
partment of its intentions, and formal
notification has been held UP only by the
routine Of red tape.
The Administration will protest
against the decree, but this probably
will be unavailing. Therefore. 1t is up
to the Administration to aid in dispos-
ing OF the crop surplus. and the VIII
liams statement Is regarded as an index
to the plans Of the President and his
advisers.
Congressman Lever of South Caro-
It,,A oh, ot,.,,o of - taa
on Agriculture, recently conferred with
the President over the critical cotton
situation. He left the White House
saying that the President was at work
on plan which Lever thought would
bring relief.
Ready For All Demands.
| Comptroller Williams issued a state
| ment last night which. it is assumed.
/ had the approval of the Administra-
ton. The statement described the ma
| tional banks as prepared to meet every
| warning that 1t were better for these
| banks to finance the movement of crops
| and encourage legitimate trade than
! lend funds for the imitation OF stock
| markets.
| The unsurpassed reserves of the ma
| tional banks, the Comptroller says.
give them now loaning capacity sew
erai billion dollars in excess of what
| Is employed.
Although Great Britain has virtually
considered cotton as contraband for
some time, formal declaration of a
| contraband cotton decree will presum-
ably cut off all market for the excess
cotton crop of this country. Hereto
fore exporters have been willing 10
| take chance" and ship over cotton
cargoes in the hope they would not oe
captured. L<ge profits awaited the
exporters II the cotton reached destina-
ton; reparation at fair prices was In
A decree declaring cotton contraband
thowever. will discourage shipping ano
put up to this country the necessity OF
taking care Of its crop.
Largest Reserve Shown.
The national banks of the country or
the last call by the Comptroller showed
reserve in excess of the largest ever
held at any one tine in the history OF
the country. and amounted to sl,S4o..
OCl OO) The national banks and the
Federal reserve banks hold close to
billion dollars in specie.
The Comptroller. however. gives
warming He says: The soundpess ol
our new banking and currency svsten
and its ability to meet successfully
even the most trying emergencies, have
, been demonstrated. We also have con
tidence that it will be equally able tt
cope with and control imitation growing
out of prosperity. 1t behooves the IA
| tional banks and the department of th'
| Government charged with their super
| vision, to exercise. under present CIR
cumstances, the utmost vigilance and 1
wholesome restraint lest overconfdenc'
, and unwise expansion or speculation
roy check the prosperity which nov