Norwich bulletin., 1920-10-22
BANKERS ENDORSE THE ! FEDERAL KEsERyEs SYSTEM

D
 Washington, Oct. z1s-Blanket endorse nlent of the federal reserve system, coupled with a pledge to aid the national railway equipment ccrpof ation, organized to heln the carriers obtain equipment. marked the conclusion today sof group meeting of the American Bankers asso- ciation convention. s5
 As an ou5growth of the convention. however, bankers and others from the cotton state stock steps preliminary to the organization of a S12,000,Q ,QQ6 crou export financing corporafion to, meet the situation which led to numerous appeals from cotton growers for government re- lief. The corporation, will be formed un- der the Edge act and start operations with an initial paid-in capital and sur plus of $6.000,0O
 The federal reserve system was given unstinted praise by the national bankers group in resolutions adopted at their final meeting, while the approval of the equip
 ment corporation and the pledge to go before the state legislatures where neces. sary to obtain revision of Jaws prohibit. ing investment of trust funds in sucf securities was voted by the savings bank section. The action was based on tllt
 increased values given all railroad Sc curities through creation of the equipmen corporation, the resolution said
 | Endorsement of the federal reserve sys tenn, which included approval of it's ad ministration, brought the national bank
 CTS again in sharp opposition to the stanC | staken by the state bankers, who yester | day denounced several phases of the re
 serve boards work. Leaders in the tw,
 groups of markers believed tonight tn l differences between the two section l might come to light when the report o | ha floor of the convention tomorrow. Al
 resolutions adopted in sectional meeting
 will be considered by the association com | nittee, and final action be taken by tn convention as whole.
 The question of par clearance, wit
 which the state bankers dealt in thei
 sectional resolutions yesterday, was pass
 ed over in the convention today. Tn
 special committee considering it reporte
 progress" and was instructed to cor tinue it's work. a The crop financing corporation projes took shape at an informal meeting (
 several hundred bankers and represents tives of cotton interests. A special con
 mittee, headed by Robert F. Maddox ( 5 Atlanta, presented a fayorable rephpt-s, 5t Tentative plans would enable the cci Eporation to handle all kinds of asricu f ttiEal commodities but leaders in ~ e movement aimed at the relief of the co : ton industry as its primary objet a Speakers, however. pointed out benefi e which they believed would be derived | r all producers of farm products.
 sl The plans provide for stock stibscri d tions on the basis of s1 baiS on cottt t, produced in the various states and Il f payment down on half of the amount,
 s6.o00,00o of the incorpotated can't, a Under the Edge act sllch cornora tions {, ,t l permitted to handle trade accentanees it3 purchasers agreements to the extent d ten times the paid-in capital, which won J. enable the corporation to deal in su y. commercial obligations to upwards lei S60.o00 .0oe This amount, speakers q d clared, should be sufficient to meet d i'd mands of he soWh