Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-08-24
s3O,OOO,OOO AID
BY U. S. BANKS
FOR COTTON MEN
McAdoo Will Deposit t
Large Fund to Finance
the Crop
FREE OF ALL INTEREST
Gigantic Step of Treasury Fol-
lows Contraband Action
by Allies

WARRINGTON, Aug. A.-The first step
! tho part OF the Federal Government
- reileve the Southern cotton planters
~aa taken late yesterday
announcement was made at the Treas
az Department that Secretary McAdoo
~cuid deposit $50 600 in gold in the
r~deral reserve banks Of Atlanta, Dallas
- Richmond, II so large a sum is need
al 10 facilitate the financing of the cot
~ crop This step was decided upon
~ result of the action of the Allies in
-.ttlng cotton on the contraband list.
The deposits, according to the official
announcement. will be for the purpose
n enabling those Federal reserve banks
Al rediscount loans made on cotton Sc
snred by warehouse receipts by national
Marks and those State banks that are
s,ernbers of the Federal reserve system"
No interest will be charged on these
ssnosits. It is intended that the deposits
sball make II possible for the member
hanks to charge low rates on loans on
warehoused cotton, and indications are
mat the Federal Reserve Board will fix
paper of this character.
No disclosures have been made as to
what other steps are under contempla-
non for the relief of the cotton situation.
The idea of Government officials is that
hans at low rates of interest will enable
cotton planters to hold back from the
market a part of their crops, thus help
ing the price.
The President conferred with w. p. G.
Harding. of the Federal Reserve Board.
who has had supervision of all problems
arising out of the cotton situation. Many
phases Of the situation were gone into
and steps which seem to be advisable
were discussed. No announcement was
made, however, as to what plans the
President and Mr.. Harding have under
consideration. Mr.. Harding will deliver
a speech on the cotton situation at Bir-
mingham Thursday night.
OFFER NOT SATISFYING
Southern cotton growers meanwhile are
manning steps for their own relief. The
announcement by Secretary McAdoo that
the treasury would lend 10000, 900 to safe
Euard this years crop is pleasing, but
far from satisfying.
Placing of cotton on the contraband list
by Great Britain and her allies is being
denounced bitterly by southern Senators
and Representatives, and many of them
make 1t plain that If the administration
does not file a most drastic protest, they
will make the entire question a national
Issue as soon as Congress reconvenes or
is called in special session.
The prediction freely is made that Pres
ident Wilson cannot expect Congressional
support for any reprisals taken against
Germany for the Arabic's sinking II he
does not deal sharply with Great Britain
for hampering the cotton trade.
COMMERCIAL MEN CONFER
Oficers of the Southern Commercial
Congress, headed by Senator Duncan u.
Fletcher, began a series of conferences
here today to determine what additional
means must be employed to solve the cot.
ton situation. 1t is expected that a con-
fention of cotton growers and shippers
will be called to meet here next month
70 take up the entire question. The great
concern of the cotton men is the future
This years crop can be cared for, and
the price of the staple kept high enough
70 prevent the planters going bankrupt
But II the European war is to continue
Indefinitely, markets must be opened and
kept open, as money enough cannot bC
found for indefinite loans.
conferences between w. p. G.. Harding
Of the Federal Reserve Board, and Sil
Richard Crawford, of the British EN-
Dassy, continue. in the hope than an ar
rangement may yet be. made whereby
the relief promised by England hersel
may be made practical.