The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-10-26
Plans fer Organization cs $780,
Coo Cotton ExPori Corporation
Adopted 9: Meeting Of Bank
crs and Representatives Of
Cotton Interests Held in
Washington.


,, porat:ci were adopted at q meeting
here late today CT bankers and rep
1csentativcs O. cotton interests at
tending the convention Of the Anaerl-
can Bankers association.
The meeting approved suggestions
contained in a report of a commit
tee, headed by Robert F. MADDOX,
Atlanta banker, to move at once in
he direction Of preliminary steps
toward organizing the corporation.
Tentative arrangements provide for
the payment Of half of the capital
stock or an initial working fund OF
s., 100000 capital, and $1,000,o00
eurplus.
Capital subscriptions, the plan sug-
gests, will be based on an assess
ment of 81 a bale on cotton raised IN
the respective states thereby making
the organization one of far-reacking
influence throughout all territory
which has had difficulty in financing
the movement Of the cotton crop.
The decision to call for the initial
payment of only half of the total
capital means therefore that the sub
scriptions will be prorated among the
purchasers of stock on the basis OF
SO cents per bale.
Under Edge Act.
1t 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 the
commodity be moved sat a time
when the market is stagnant.'
Under provisions of the Edge act'
the corporation is enabled to handle
grade ACKNOWLEDGEMENTS 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 acceptances
Of cotton purchasers to the amount
of s6,OOO,O00.
Although there was no specific
mention made there were indications
that formation Of the corporation
would Immediately open the way for
the sale of cotton in Europe when
the demand is estimated at three to
four million bales.
No Broad Promises.
The committee informed those IN
attendance ct the meeting that 1t
would make mo extravagant prom
ises." but that it hoped that the es-
taoIshment of such corporation
would be "of tremendous benefit to
the South. The meeting was told
also that the corporation would not
prove a remedy for all Ills" al
though it would make possible the
provisions for. market time in time
of emergency as the cotton produc-
ers are now passing through.
Although the corporation may IN
the future extend its operations TO
other commodities, those in attend
ance urged that it devote its re-
sources at first to the handling OF
this crop alone. The way was left
omen. however, for such enlargements
and suggested extensions can Ge
made as needed, speakers declared.
Dallas, Oct. 21.-Assugance that
the federal reserve board will coop
crate with the farmers to the fullest
extent by granting banks longer
credit on cotton notes was gwen TINS
morning by Judge w. H. Ramsey
federal agent for the federal reserve
board in the Eleventh district, IN
addressing statewide conference ci
ginners. bankers and business men
here.
Judge Ramsey asserted that the
financial condition Of the nation IS
as good as it had ever been.
THE federal reserve bank Will
function properly in giving member
banks longer time on cotton paper.
Credit has been available for cotton
as in other industries and l see no
reason that credit should be dlscon-
t;nued,' he said.
Judge Ramsey added that the fed
eral reserve board of directors favors
system of gradual marketing OF
cotton but that they would not sup