Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-10-22
bOUTHERN BANKERS
FORM BIG COMPANY
10 MARKET COTTON
Will Finance $12,O0O,0OO
Organization to Extend
Quick Relief.
20 RESULT I'M OPENING
TRADE WITH EUROPE
rime of Oratory Past, South
Must Move for Itself, Says
Committee.
her UNDER THE EDGE LAW
fcw Corporation to Be Large Fac
tor In Meeting Problems OF
Existing Crisis.
lcT UNDER THE EDGE LAW
New Corporation to Be Large Fac
tor In Meeting Problems OF
Existing Crisis.
tBy Associated Press. ]

WASHlNGTOS, Oct. 2l.-PlanS for
he organization OF a &l:,0eo.oO0 cot
on export and crop financing cor
oration were adopted at meeting
ere late today or bankers and repre-
cntstivcs OF cotton interests at
ending the convention OF the Ameri
an 1'ankcrs' Associution. The meet
ne approved suggestions contained
n report OF Il committee headed
~ Robert j.. Maddox, Atlanta bank
r. TO move at once in the direction
Il preliminary steps towards organ
zinS the corporation. Tentative mr.
angcmcnts provide for the payment
# half the capital stock. or an initial
yorking fund OF s5.000.O00 capital and
100000 surplus.
Capitni subscr! ptiona, the plans
u3gest. viii! be based OIL an assess
nent OF 81 a bale on cotton raised In
he respective States, thereby making
hc organization one OF influence
hrouEhou, al. territory which has
ad difficulty In financing the move
nent or the cotton crops. The deci
ion 10 call for the initial payment OF
= My half of the total capital means.
therefore,. that the subscriptions Will
C prorated among the purchasers OF
tock on the basis Of, 80 cents per
,alc.
Inaurcx Crop Movement.
L, was made clear by speakers at
ne meeting that the purposes OF the
corporation, which will be organized
iaders the Edge act. amending The
sedsral reserve act, Is not to hold
| a In Hof
ne commodity be moved "at time
when the market Is stagnant."
Under provisions of the Edge act
hc corporation is enabled to handle
-ade acccptances-aEreem OF the
.ourchasers-to the amount OF ten
imes its capital and surplus. or in
he case OF The proposed corporation.
he ability TO handle acceptance OF
.otion purchasers 10 the amount OF
90. 900. 900. Although there was no
ipccltc mention made, there were In
Ii!catlons that formation OF the cor
,oration would Immediately open the
|way for the sale of cotton in Europe.
where the demand is estimated At
!; zoe. 600 10 100000 bales.
Tine committee Informed those in
III tue HlccNshS hhat a.
|would make mo extravagant prom
l!ses." but tina. it hoped that the es-
Establishment OF such corporation
would be .'of tremendous bcnehc to
h nc South. The meeting was told also
|,hut the corporation would not prove
|. remedy for all Ills" although it
would mako possible the provision
|for markets In time OF emergency
such as the cotton producers are now
passing through.
Confines Activities Now to Staple.
Although the corporation may in
|,I, future extend It's operations to
|o;her commodities. those In attend
;.ncc urged that 1t devote its re-
|crop alone. The way WIS left open.
however. so that enlargement and
suggested extensions can be made as
needed, speakers declared.
The report OF the special commit
,re. which led the way in the pre-
l'.nmary steps follows in part:
"On Tuesday. October 10. 1920. Il
,ccial conference was called of some
%. the Southern bankers present Mt
his convention and the general sun
icct Of the difficulty of financing cX-
ports of our agricultural products
and other commodities was dis
cussed. AS n result Of this discussion,
.ou instructed your chairman to ap-
ont a committee to lay before you
;o,nc concrete recommendations as to
>nat might be done to improve the
ytuation: and accordingly the undaI-
nj
representing most OF the Southern
states and this committee Is 20 be
Increased by having representatives
from Missouri, Virginia, Oklahoma
and Florida.
Time Is Past for Oratory.
Your committee feels that the
time Is past for oratory, special ap-
heals to governmental or other nu-
thorities, and that 1t Is time that we
of the South take hold of this situa-
tion and help ourselves as we un-
Joubtedly can If we Will cooperate
In the manner hereafter suggested
Ut was the unanimous conclusion
that while 1t Is possibly advisable to
organize a number Of trading cor
rorations under the Webb act or
otherwise. it would hardly be prac-
,ical to have an organization which
would attempt actual selling of
goods for tho entire South.
Your committee therefore recon-
mends that the question OF trading
corporations be loft entirely to the
judgment OF tho bankers and busi-
ness men ins each State or district.
and We ar6 OF, the belief that especi-
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