Dresden enterprise and Sharon tribune. (Dresden, Tenn.) 1907-1997, 1915-09-10
THIRTY MILLIONS TO
HANDLECOTTONCROP

Washington, Sept. 3.-Defnit
steps were taken today by the fec
eraI reserve board and Secretar
Of the Treasury McAdoo to extern
aid to cotton growers and to clea
the way for handling the fall croI
without last years uncertaint.
and difficulty.
The board issued new regula
tions authorizing federal reserve
banks to give special rediscount
rates on promissory notes secured
by warehouse receipts for staple
agricultural products, with the re-
striction that member banks,
Which avail themselves of this
rate must not charge more than
six per cent to the borrower.
Mr.. McAdoo announced he soon
would deposit $5,000,000 in gold
as an initial deposit in each Of the
federal reserve banks at Atlanta,
Dallas and Richmond. Fifteen
million dollars more is to be de-
posted later.
The secretary said that if condi-
tons showed the need Of deposits
elsewhere to aid in handling any
other crop he would extend SINH
lar aid.
The new regulations are broad
enough to apply to all staple read
lily marketable crops, but it is we'll
known that the cotton crop is the
one that has given concern Of late.
The board announced that the
reserve banks in Atlanta and
Dallas already had requested
redlscount rate OF three per cent
on the sort of paper approved in
the regulations.
The announcements tonight fol-
lowed meetings that have occupied
the time OF the board and Mr..
AZ ..
McAdoo most Of the last two days.
The ~sseEetary's proposal several
months ago44of deposits OF govern
ment funds in southern reserve
banks alone not favored by several
members OF the board, but it was
not opposed during the recent dis
cusslons. Some members indicat-
ed, however, that as the total cot
ton crop probably would be worth
about $800,00O,OOO, they did not
think $30,000,0OO would go far
toward handling it.
i have concluded that the best
plan for extending aid to the
cotton producers Of the south is
to deposite the $30,000,000 in gold,
concerning which | made an an
nouncement short time ago, in
the three federal reserve banks
located ataRichmond, Atlanta and
Dallas, instead Of in the member
banks of the federal reserve sys-
tenn" said Secretary McAdoo. ,
Five million dollars will be
deposited Immediately in each Of
these banks making a total initial :
of $15,0O0,O00. The federal re- '
serve banks have the organiza- 9
ton, the knowledge of local condi- :
tons and the powers under the /
federal reserve act and the regu- q
lations OF the federal reserve T
board through which the proposed i
aid may be most effectively rend- \
cred.
To-day the board adopted reg v
ulations concerning commodity a
paper Under these regulations I
all national banks and state banks T
which are members OF the federal t,
reserve system, which may lend Q
to farmers or others on tt
notes secured by cotton, properly h
warehoused and insured, at the S
rate Of interest, including COM n
not exceeding six per ]
cent, per annum, may rediscount S
such notes with the federal re- a
serve bank Of their district. q
To illustrate how the pro. "
posed relief is available to the +
cotton producer the following is {
given as an example: A Dor y
rover asks his local bank for a G.