The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-10-22
SANKERS AND COTTON MEN
ii ADOPT PLAN TO ORGANIZE
$L2, 900, 900 EXPORT BODY

i WASHINGTON, Oct. %. (By the
associated Press. )-Plans for che or
f,ization Of a $12,000,000 cotton ex-
I'll and crop financing corporation
EAe adopted at meeting here late
Yesterday OF bankers and representa-
lives Of cotton interests attending
he convention of the American
Bankers' association. The meeting
Improved suggestions contained in a
keport of q committee headed by
Robert F. Maddox, Atlanta banker,
10 move at once In the direction Of
preliminary steps toward organizing
he corporation. Tentative arrange
ments provide for the payment OF
half the capital stock, or an initial
Eorking fund Of $1,000, 900 capital and
~ 100000 surplus.
Capital subscriptions, the plans
biggest, will be based on an assess
hent Of 81 q bale on cotton raised
Ii the respective states, thereby
making the organization one Of in
huence throughout all territory which
has had difficulty in financing the
movement of the cotton crops. The
becision to call for the initial pay
hnent of only half of the total CAPT.
kal means therefore that the sub
kcriptions will be prorated among
khe purchasers of stocks on the basis
pf SO cents bale.
1t was made clear by speakers at
the meeting that the purposes of the
corporation, which will be organized
binder the Edge act amending the
Federal reserve act, is not to hold the
bottom CROP but to insure that the
commodity be moved "at time when
the market is stagnant."
l Under provisions of the Edge act
khe corporation is enabled to handle
Trade ACKNOWLEDGEMENTS of the
5purchasers-to the amount Of ten
hines its capital and surplus, or in
The case of the proposed corporation
he ability to handle acceptances OF
cotton purchasers to the amount OF
$50, 100000. Although there was nc
specific mention made, there were in
klications that reorganization of the
corporation would Immediately oper
The way for the sale of cotton in
Europe, where the demand is esti-
mated at three to four million bales
Benefit to South Seen.
/ The committee informed those II
attendance at the meeting that il
awould make mo extravagant prom.
ses." but that it hoped that the es-
q Establishment of such a corporation
would be of tremendous benefit" tt
the South. The meeting was tolt
also that the corporation would not
4prove a remedy for all ills" al
Though it would make possible the
provision for markets in times o.
aemergency such as the cotton pro.
&ucers are passing through.
Although the corporation may Dr.
the future extend it's operations t
bother commodities, those in attend
ance urged that it devote its re-
asources at first to the handling O.
this crop alone. The way was lief
Hopen, however, so that enlargement
land suggested extensions can b,
made as needed, speakers declared.
The report Of the special committed
which made the preliminary arrange
Hments and led the way in the pre-
liminary steps follows in part:
ION Tuesday, Oct. 10, 1920, a spe
lcial conference was called of SOM
of the Southern bankers present a
this convention and the general sub
Hiect of the difficulty of financing ex
Hports of our agricultural products
land other commodities was discussed
II AS result of this discussion, yol
Sinstructed your chairman to appoin
Ia committee to lay before you som,
II concrete recommendations as to VIII