The Dawson news. (Dawson, Ga.) 1889-current, 1915-08-10
AID IN HANDLING
~ The COTTON
nppAI RESERVE BANK Pr
DING FOR THE REGIONAL
BANKS TO HELP SOUTH.
PRELIMINARY PLANS DESIGNED
.o.s sent to Regional Banks, and
wbov Are Ordered to Take Up the
question With Members. The Pre-
,n,inary Plans Being Made.

question WIN MChpCAS % A"O AZ
liminary Plans Being Made.
WASHINGTON, D. C.-Prelimina-
~ MANS designed to make available
rosources of the federal reserve
tom in the annual fall movement
=. tbo cotton and other crops have
W. worked out by the federal re-
.ro hoard. In a letter addressed
- rogional banks the board pointed
how +he crop movement could be
financed.
The hoard calls special attention
10 the marketing of the cotton crop
bacanse it is clearly to the common
,.torost that credits be based upon
tbis crop be protected as far as pos
.iblo from the danger of demoraliza-
.,or - II shows that no staple COM
modify is subject to greater varia-
tions in prices than cotton.
Sudden and violent fluctuations,
= continues, are clearly to the ad-
n vantage of neither the lOaning banks,
tbn nroducer. the manufacturer nor
tbo consumer. They offer on the
contrary an interesting field for the
8peculator.
The board suggests that the reserve
,onLo communicate with their mem
hers and others interested and point
ont that cotton producers should be-
gin at once arranging for it's proper
storage and insurance as rapidly as
gnned.
N Federal reserve banks, says the
letter. should particularly point out
TO their members that they are pre-
pared to rediscount the notes of farm
ers and merchants secured by proper
warehouse certificates for cotton and
accompanied by evidence of insur-
acne"
Can Call For Additional Security.
Member banks, the letter says,
which offer these notes to federal re-
serve banks for rediscount should be
ready to state the grade and market
value of the cotton, and the notes
should be in the customary collateral
form, providing the right to call for
81 additional security in event of mate
rial decline in market values.
The amount to be advanced would
N be left primarily to the Judgment OF
N the member bank, says the letter
The board suggests that the reserve
banks call attention of their mem
Il Der banks to the desirability of re-
Al serving storage space for such cotton
as is to be used as security for loans
in localities where warehouse facili-
ties are inadequate. The letter says
that there is probably ample facili-
Ri ties for the proper storage of all cot
ton likely to be pledged for loans.
~ oIOuiu US PAOlA,
board warns, that compliance with
Il the essential features of the plan
N nerein outlined, modified as circum-
stances may demand, will be neces-
Il sary for the normal marketing OF
\ this years crop and for the proper
protection of those who are interest
4 ed in its movement, whether banks,
N producers or manufacturers.
While there seems to be no rea-
son to believe that the worlds pres
ent and potential supply of cotton is
OUT OF proportion to requirements
Isl uuflng the next twelve months 1t is
leVertheless important, because OF
our lack of shipping facilities, as well
pS restrictions brought about by the
#"af upon free exports to all coun-
res that ample means be provided
OF the proper handling and effective
Reting of cotton