Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-03-12

great commodity that had been count
ed upon to produce $500,000.000 Of
foreign exchange, affected the A.
nances Of the world. The greatest A.
nancial leaders in the country were
at a loss to find a remedy, although
expedients Of all sorts were proposed,
among them the "buy-a-bale" plan,
which resulted in the sale Of linn
tied amount Of cotton at $50 per bale
by a comparatively small number Of
producers, which merely shifted the
ownership of the cotton involved
without increasing its consumption
or adding to its market price, and
which also tended to give holders
wrong ideas as to actual values.
Various other schemes we're agitated
looking to the purchase Of cotton at
a fixed price by the National Gov
ernment by the states, but no legis-
latiye action resulted except the en-
actment Of an excellent Warehouse
law in the state Of South Carolina.
The city of st. Louis, the COM
mercial gateway to the Southwest.
and a great distributing center for the
entire south, was perhaps, more
directly affected by the distress pre-
vailing throughout the cotton States
than any other financial center, and
to a banker Of that city, Mr.. Festus
]. Wade, Is due the credit for the
imitation Of a relief measure whose
evolution into q great cotton loan
fund was undoubtedly instrumental
in ending the cotton panic. Out Of a
total sum Of $101,036, 900, subscribed
by and through banks in the north.
east and west, New York subscribed
$52, 100000 Chicago $12.045,500, st.
Louis $12,OO4,600, Philadelphia $5.-
ITO, 900. Baltimore s2,451,OOO, Boston
$2,085,000, Cincinatti 100000,
Cleveland s2.O0O.00O. Pittsburgh s2.-
600, 900, and several other cities more
than 100000 each. Altogether there
were CSC subscribers in "a cities sit
uated in 10 states and the District OF
Columbia. While the funds provided
were barely touched, the total loans
having been only s2S,O00, the plan
was nevertheless effective in creating
the mental attitude necessary as a
for the restoration Of or
derly methods and normal conditions,
yet while the funds was being sub
scribed much opposition was mani
tested and the idea condemned In
some quarters as illegal, economically
unsound, dangerous and visionary.
The essential feature Of the plan adopt
ed, however, was cooperation be-
tween banks Of the south, who as
rule, already had large equity In the
cotton crop by virtue Of advances
made while it was being grown, and
banks in other sections, whose inter-
ests were remote and whose partici-
patton was due to a patriotic public
spirit. The members Of the Federal
reserve hoard, in their individual
capacities, consented to act as CEN
trail committee in general charge OF
the management Of the fund. A loan
committee was appointed. composed
of two members Of the Federal re-
serve board and Of six well-known
bankers representing the cash sub
scribers. TIL, South was to subscribe
as needed a total Of s35,000,OO0, and
Southern banks were allowed to pay
their subscriptions in notes secured
by cotton collateral. and loan COM
mittees were appointed in each Of the
cotton growing states. who, in turn,
selected a large number Of local
committees throughout their re-
spective states. The plan provided, In
effect, for a moderate valorization Of
cotton, as loans were to be made upon
the usual margin, on a basis of
cents per pound. The prominent part
taken by the secretary in the forma-
tion Of the fund, to whose unflagging
efforts it's accomplishment was due,
the attempts of its opponents to de-
feat the plan, the interest taken In
the matter by the president, who re-
quested the attorney general Of the
United States to give ar opinion as
to it's legality, which opinion held
that 1t was not in contravention of
any of the antitrust laws-all served
to give this measure Of relief the
widest possible publicity. not only
throughout the United States, but
abroad as we'll. AS soon as spinners
throughout the world were impressed
with the fact that cotton. after all,
had a tangible value, but holders
could secure loans upon it On the bas-
is of cents per pound, they began
to buy Other circumstances about
this time tended to broaden the de-
mand, the Federal reserve banks
were opened, money rate began to
drop, Great Britain announced that
cotton would not be regarded by her
as contraband of war, a well-defined
movement t. Germany ensued, sales
of the cotton in the south liquidated
pressing Indebtedness, ond In a short
time the whole situation was sensi-
bly, relieved. Despite our limited ship
ping facilities, handicapped further
by vessels having to pass through
mine-infestel seas, exports Of cotton
for the past two months have been
without parallel. The war risk in
surance provided by the government
last fall has been most effective, and
has facilitated a movement Of cotton
which otherwise would have been i'm
possible. With occasional fluctuations,
prices have advanced to more than
cents per pound, and the general
bankruptcy that threatened the South
when the situation lookel darkest has
been averted.
The s100,OOO,OOO gold pool which
was formed last fall for the purpose
of reducing the price Of foreign ex-
change so as to render possible the
liquidation Of our indebtedness abroad
has been dissolved, the first Install
ment only having been called, and
much of that unused. Cotton ex-
changes have been reopened, stock
tr,