Pine Bluff daily graphic., 1920-10-22
FORM CORPORATION TO EXPORT COTTON CROP IN DULL TIME Twelve Million Organization Will Also Finance
 Growers BANKERS TAKE ACTION AT U. s. CONVENTION Emphasized Plans Not Made to Hold Yield, But to Stim-
 ulate the Mar
 ket

Washington, Oct. 21.-Plans for the organization of $12,OOO,OOO cot ton export and crop financing cor poration were adopted at meeting here late today of bankers and rep resentatives of cotton interest at tending the convention of the Amer ican Bankers association. The meet ing approved suggestions contained in report of committe headed by Robert F. Maddox, Atlanta banker. to move at once in the direction of preliminary steps toward organiz- ing the corporation. Tentative ar rangement provide for the payment of half the capital stock, or an ini- tial working fund of $5,OOO,OOO cap- ital and $1,OO0,000 surplus.
 Capital subscriptions, the plans suggest, will be based on an assess ment of one dollar a bale on cotton raised in the respective states, there by making the organization one of influence throughout all territory which has been difficult in finoncing the movement of the cotton crops. The decision to call for the initial payment of only half of the total capital means therefore that the subscriptions will be pro-rated am- ong the purchasers of stock on the basis of 50 cents per bale.
 Not To Hold Crop
 It was made clear by speakers at the meeting that the purposes of the corporation, which will be organized under the Edge act amending the federal reserve act, is not to hold the cotton crop, but to insure that the commodity be moved 'at a time when the market lies stagnant."
 Under provisions of the Edge act the corporation is enabled to handle trade acceptaaces-agreement of the purchasers to the amount of ten times its capital and surplus, or in the case of the proposed corpora ton, the ability to handle acceptan- ces of cotton purchasers to the am ount of $6O,000,00O. Although there was no specific mention made, there were indications that reorganization of the corporation would immediate ly open the way for the sale of cot ton in Europe, where the demand is estimated at three to four million bales.
 The committee informed those in attendance at the meeting that it would make no "Sxtravagant pro- mises," but that it hoped that the es- tabllshment of such corporation would be "of tremedous benefit" to the south. The meeting was told also that the corporation would not prove remedy for all ills" AL though it would make possible the provision for markets in time of emergency such as the cotton pro- ducers are now passing through.
 Handle Cotton Alone
 Although the corporation may in the future extend its operations to other commodities, those in atten- dance urged that it devote it's re- sources at first to the handling of this crop alone. The way was left open, however, so that enlargement and suggested extension can be made as needed, speakers declared.
 The report of the special commit tee which made the preliminary ar- engagements and led the way in the preliminary steps follows in part:
 "On Tuesday, October 19, 1920, a special conference was called of some of the southern bankers pre- sent at this convention and the gen. eral subject of the difficulty of fi- nanclng exports of our agricultural products and other commodities was discussed. As a result of this dis cusslon, you instructed your chair man to appoint committe to lav before you some concrete recommen- datlonss as to what. might be done to improve the situation; and &C., cordingly the undersigned commit tee was appointed representing most of the southern states and this com mittee is to be increased by having representatives from Missouri, Vir- glnla, Oklahoma and Florida.
 Your committe feels that the time IS past for oratory, special appeals to governmental or dther authorities, and that it is time that we of the South take hold of this situation and help ourselves as we undoubtedly can if we will cooperate in the man. ner hereafter suggested.
 Your committe does not believe that we should attempt anything on too large scale but recommends that we start an export financing cor poration under the Edge act with a capital and surplus of, say, twelve million dollars. Fifty per cent of the Subscribed capital would provide an immediate fund of six million dol lars which would be represented by five million dollars of capital and (Continued on Page Six)