Tensas gazette. [volume] (St. Joseph, La.) 1886-current, 1915-10-08

Washins -on.-Plans have been COM
pleted for he operation of the $780,
ooo.O0O On loan fund, and a meet
Ing of bhairmen is being held in
Washin ! The plan was approved
on Nove.' 30, 1914, by the Central
committee. composed7of all the men,
bers OF the Federal Reserve Board.
The Cotton Loan Committee, which
worked out the plan and which will
be in charge of the administration, is
:. composed of two members of the Fed
4 .ral Reserve Board of Washington, d.
MI, W. p. G. Harding, chairman, and
Paul NJ. Warburg, and five representa-
tive bankers. Albert II. Wiggin and
James S. Alexander of New York,
James b. Forgan OF Chicago, Festus j.
Wade OF st. Louis. Levi l.. Rue of Phil
adelphfa and William A. CASTOR of
Boston.
The forms OF contracts, notes, csfti.
ficates, assignments, etc, are now
being prepared by attorneys, and it is
expected that money will be available
for loans within Is days, probably i'm.
mediately following a meeting of the
chairmen OF the state committees.
The state committees will appoint
local committees in sufficient number
: to facilitate and safeguard the practi.
cal workings of the plan. The plan
itself is simple.
The fund is distinguished by its
operation as pool of many lending
and borrowing interests, and by the
length Of time that the contracts will
run. Loans are made for one year,
though they may be paid sooner On
the other hand, the Central Committee
has the right to hold the contributors
to the fund an additional six months
after the first year, II conditions, in
their opinion, justify.
1t has been generally considered
that the cotton fund will not all be
applied for. The amount to be used,
however, must be determined by the
first day of next February, because
the subscribers to the fund will be re-
leased. on that date for the balance not
applied for.
1t is understood that red tape and
undue formality will be eliminated as
much as possible in the handling of
the fund.
u. Explanation Of the Plan.
hen The following is a brief explanation
"a Q the plan for the benefit of cotton
d owners and bankers:
ugh Loans will not be made on lots of
I atss than 100 bales, except in particu-
he instances.
, b The farmer, the merchant and other
,e otton owners in any state may apply
! ELI his bank for q loan on cotton to be
q laid within one year after February 1,
foe15, with interest payable quarterly
gh'. the rate of per cent per annum.
/" The loan may be paid and the secur-
ity released at any time during the
year, after the borrower gives 30 Jays
written notice. and upon payment Of
interest to the end of the quarter.
AS security for the loan, the borrow
er will offer cotton valued at six
cents per pound for "middling" grade
Adjustment to be made for all grades
above low middling."
The margin Of security will be 20
per cent, SO that for a loan of $1,000
the security would be 120 bales of mid
ding cotton, with little less security
for the higher grades, and little more
security for the grade or two lower.
From the proceeds OF the loan, three
per cent will be turned into the Cot
ton Loan Committee in New York as n
guarantee against loss from any cause.
Expenses of administration, which will
not exceed 1-S of l per cent, will be
paid from this fund.
II should be remembered that the
services OF every one connected with
the pool except clerical, legal and tech
meal, are given without charge. There
fore II the pool is administered with
out loss, as expected, the guarantee
fund will be returned prorata to the
borrower.
From the example loan of $4,000
there would be deducted for the guar
antee fund $50, or 90c a bale on 100
bales of cotton. The net proceeds Of
the loan to the borrower would be ST.
$40. The banks are not allowed to
charge any commission or othe: fees.
The cotton OF course must be stored
in a safe place in the custody Of a
warehouseman other than the bor-
rover or the banker. The grade must
be established to the satisfaction of
the committee. 1t must be free from
lien and protected by insurance
against damage.
instructions to Bankers.
The banker must be prepared to
contribute to the loan fund one-fourth
1T the amount that his customers Dor.
row. He makes his subscriptions "a
the loans are made. sending forward
Cotton Belt Employees Divided.
St. Lo.iis.-A vote to strike has been
adopted by the conductors and brake