The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-17
BOARD TO
AID COTTON MEN
Federal Officials Confer With
New York Bankers on the
Situation.
CONFIDENT OF SUCCESS

IN important conference Of four menu
hers Of the Federal Reserve Board with
the officers of the Federal Reserve Bank
OF New York and a number Of prominent
New York bankers was held at the re.
serve institution yesterday about the cot
ton situation. The special point under
discussion was Standardization OF ware
houses and warehouse receipts.
The Federal reserve board liz devoting
much study to the matter Of securing
uniformity of warehousing facilities, not
only for cotton but for other similar
commodities that will assist materially
I'm financing them and render the bank
Ing of the country In the in
terest OF the farmer vastly more flexible
and extensive. II Is recognized that the
need for a warehouse receipt that would
be instantly accepted In any bank
throughout the ountr as sound n as
n highly desirable investment Is one OF
the greatest essentials IN the interest OF
the farmer and the facilltation OF better
financing of his crops. This applies with
peculiar force to the cotton crop at this
time.
The members of the Federal Reserve
Board who attended the conference were
Gov. Charles =. Hamlln. Paul NJ. War
burg. r. a. Delano and William q. l..
Harding. Gov. Strong and Pierre Jay
Of the New York reserve bank were
present and among the New York
bankers who met with the reserve OH =
cials were James II. Perkins. vice-presi-
dent OF the National City Bank Alexan-
der j. Hemphill. chairman OF the boar I'd
of the Guaranty Trust Company Walter
Il, Frew. president OF the Corn Exchange
Bank: Gilbert q. Thorne. vice-president
OF the National Park Bank: Albert II.
Wiggin. president Of the Chase National
Bank James :. Alexander. president Of
the National Bank OF Commerce Gates
McGarrah. president OF the Mechanics
and Metals Bank. and William Wood
ward. president of the Hanover Ma
tional.
A statement made az the Federal re-
serve bank was as follows:
AS some OF the members of the Fed
cral Reserve Board we're passing
through New York the opportunity was
awaited OF TO arrange a conference with
officers OF n number OF New York banks
In order to discuss plans now in con-
temptation for developing more Uniform
laws and methods In connection with
the w~arehouslng OF staple commodities.
The meeting was purely Informal and
for the purpose of exchanging views
and no action was taken
The view Is expressed by leaders lr
the conference that there should be es-
tablshed a string OF warehouses under
private ownership and uniform State
laws whose receipts would become a
standard OF acceptance by banks and
Immediately redlscountable at the Fed
eral reserve Institutions. In some OF
the Southern States, notably Louisiana
and Texas. warehouses are under State
supervision. with very helpful results.
A plan for uniform cotton ware
housing was planned more than a year
ago by James Il. Duke and associates,
but was not carried through. II Is
thought that the deliberations OF the
reserve board at this time will result In
material achievement along this line.
The New York bankers told the Fed
eral Reserve Board members Yesterday
thai any plan that met with the ap-
proval of their southern correspondents
would be acceptable TO them.
Members OF the conference yesterday
expressed the view that the financing
OF the cotton crop this year could he
easily accomplished without taxing the
financial resources OF the country, ne
spite the lack this yea of the large
supply OF foreign banking capital tina;
IL normally used. Financial conditions
in the South, II was said. largely on The
basis of a study OF conditions by the
reserve board members. are In excellen,
condition and greatly improved ovei
last year. There Is "a hopeful feeling
money Is easier and promises to re-
main so,
The likelihood of the need OF any ar
t"iicial means. such as a valorizatior
scheme or special cotton pool. is secuted
members of the conference believing
that the normal credit facilities Of thu
banks backed by the reserve bank wi,
be amply sufficient.