The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-10-22

the CORPORATION 10 able 10 handle trade
aceptances- agreement OF the purchas.
ers---to the amount Of ten times lie cap
J ital and surplus. or in the case OF the
| proposed corporation the ability TO han
die acceptances Of cotton purchases 10
the amount OF 500, 100000. Although
| there was no specific mention made.
there were indications that formation OF
the corporation would immediately pre-
pare the way for the sale Of cotton IN
Europe, where the demand is estimated
at three TO four million bulet,
South VIII Benefit.
The committee informed those in at
teHdanCes at the meeting that n would
make no eNtravagant promises, but
that II hoped that establishment OF such
n corporation would be "of tremendous
benefit" to the south. Tho meeting waS
told also that the corporation would not
prove remedy for all Ills, although "
would make possible the provision for
markets In time Of emergency such az
the cotton producers are now passing
through.
Although the corporation may in the
future extend It's operations 10 other
commodities those IN attendance urged
that II devote It's resources at first 10
the handling OF this crop alone, Tho
way was LETT open. however, so that en-
largemeut and suggested extensions can
he made az needed. speakers declared.
80 Per Cent. OF Capital.
your committee does not believe
that we should attempt anything on
too large n scale, but recommends that
we start an export financing corpora
ton under the Edge act, with capital
and surplus OF. say. $l2.000,00O. F'lfty
per cent. OF the subscribed capital
would provide al immediate fund OF
Sc. 000 900. which would he represented
by sb,0O0000 OF capital and Sl.OOO,OOO
uf surplus, and that would be enough
TO handle a considerable volume OF
business
"Your committee feels that II should
not be difficult 20 get subscriptions for
Si2, 100000 OF stock in such corporation,
OF which only one-han would be ex-
pected TO be paid in for at least long
time TO come-but we feel that even
this small amount cannot he raised un-
less we have the fullest cooperation
Of every southern state represented
here today.
at is not At all intended TO have this
export banking corporation limit itself
10 the financing of cotton exports, but
for the immediate present that proves
10 be the greatest need. and as cotton
Is the principal southern crop, your
committee feels that perhaps each state
should contribute towards this pro.
posed capitalization on the basis OF,
Say. 81 per bale TO the amount OF cot.
ton raised In the respective state, ana
pay in 80 cents per bale. -,
mated OF 1900, 900 bales at this time,
this would prove Just exactly he
amount above referred to.
"If this meeting approves the above
suggestions. the undersigned committee
is willing to serve as an organization
committee II Desired, with tho addition
Of representatives from each or the
other southern states mentioned above.
But in order TO make a success OF THIS
business, II will become necessary 10
appoint a campaign committee OF Lead
ing bankers In each OF the southern
states so that we cen be reasonably
sure that the proper quota will be mano
available in each state.
Committee optimistic.
''Your committee holds out no ex-
travagant promises, nor does II hope
that the facilities established by such
a corporation will at once remedy all
our Ills. But wo do believe that such
corporation can he OF tremendous
benefit to the south and TO the nation,
| especially in It's present emergency. ana
will make It possible to provide mar :
| ket for some OF our agricultural prod
| ucts and the commodities In countries
| where no sales can be made at this
| time except on terms OF credit which
run longer than we have been used 70
| in American banking heretofore, ana
| longer than can be made available AZ
! the federal reserves banks except
through the medium Of such corpo-