The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1915-09-01
MONEY TO growers
McADOO WILL DEPOSIT FUNDS
TO MOVE COTTON CROP
THIRTY Millions READY
Secretary is Prepared to Place Gold
in Federal Reserve or National
Banks TO Carry Crop Over-Wash-
ington Redrafting Note on Inter-
ference With Neutral Trade.
ference With Neutral Trade.

With a view to aiding the cotton
farmers of the South because of the
action Of Great Britain and France
in placing cotton on the contraband
list the president conferred Monday
with w. P. G. Harding, member of
the federal reserve board. Some
time ago Mr.. Harding made an in
vestigation of the cotton situation
for the governemnt, with a view to
having the federal reserve board act
in the administration of a proposed
one hundred and thirty-fve million
dollars cotton loan fund.
It was announced at the treasury
department that Secretary McAdoo
stood ready to deposit thirty million
dollars or more in gold in the federal
reserve banks at Atlanta, Dallas and
Richmond for the purpose of enab-
ling the federal reserve banks to re-
discount loans made on cotton secur-
ed by warehouse receipts. In the eX-
ercise of the discretion given to him
by law the government for the time
being will charge no interest on those
deposits in federal reserve banks.
1t is the plan of Secretary McAdoo
| to create a basis for such enlarged
credit in the South that the banks
| will have ample resources to extend
! to producers such accommodations
that they will be able to carry cotton
in warehouses for a reasonable
length of time until it can be mar
| keted advantageously.
1t also was announced that if it
should appear that the object in view
could be accomplished with greater
efficiency to the cotton producers by
! depositing funds in the national
! banks direct instead of in the federal
reserve banks, this plan would be
adopted by Secretary McAdoo. This
he will do, provided he receives as
surance that the money SO deposited
or the credit based thereon would be
loaned on cotton insured or ware
houses at rate of interest not to
exceed six per cent.
''It is matter of economic i'm
portance to the entire nation" says
the statement issued at the treasury
department, that those who have
produced the cotton crop shall have
a fair opportunity to dispose of it
gradually and in an orderly manner,
so that they may not be forced
through inability to market their cot,
ton gradually, to sell it at sacrifice
prices" !"
It is understood that Great Britain
will send assurances to this country
| that she will take care of the cotton
crop of this country insofar as she is
able to do so, despite the fact that il
has been placed upon the contraband
list. It was pointed out that Great
Britain has no desire to see the cot
ton crop of this country go to waste
this year. If the farmers failed to
receive a sufficient sum of money for
their crop, next years yield would be
so small as to make the price prohi,
bitive in England. This situation, il
is believed, the British government
wishes to avoid.
| The new American note to Great
Britain on interferences with neu,
tral trade probably will be redrafted
because of the British order making
cotton contraband.
While there is no intention to
abandon the claims for payment fol
cotton seized prior to the British or,
der, those cases now have different
status and a complete record of this
phase of the dispute can be prepared
and presented.
The new American note, it is un.
derstood, will lodge formal protest
against the placing of cotton on the
contraband list and lengthy diplo'
matte exchange probably will follow
It is considered likely by some Off,
cials that the dispute eventually vii.
be settled by arbitration.