The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-22
BANKERS INDORSE
CURRENCY SYSTEM
Steps Also Taken to Organize
S12,000,0OO Cotton Crop
Financing Plan.
EXPORT MARKET SOUGHT
Corporation Will Be Formed
With Paid In Capital of
$6,00O,OOO.
EXPORT MARKET SOUGHT

WASHINGTON. Oct. 81. - Blanket in
TEN. coupled with pledge to aid the
National Railway Equipment Corpora
ton, organized to help the carriers OBJ
tain equipment, marked the end to-day
OF group meetings of the American
Bankers Association convention.
AS an outgrowth of the convention,
however, bankers and others from the
cotton States took steps preliminary to
the organization of a s12.000,000 crop
export financing corporation to meet the
situation. which led to numerous appeals
from cotton growers for Government re-
lief. The corporation will be formed I'M
der the Edge act and start operations
with an initial paid in capital and sur
plus of $4,000, 900.
The Federal reserve system received
unstinted praise from the national bank
ers' group in resolutions adopted at their
final meeting, while the approval of the
equipment corporation and the pledge
to go before the State legislatures were
IL necessary to obtain revision of laws
prohibiting investment of trust funds in
such securities was voted by the savings
banks section. The action was based on
the increased values given all railroad
securities through creation of the Equip
ment Corporation, the resolution said.
Opposition Evident.
Endorsement of the Federal Reserve
ft.z1 IA
administration, brought the national
bankers again in sharp opposition to the
stand taken by the State bankers who
yesterday denounced several phases of
the Reserve Boards work. Leaders in
the two groups of bankers believed to-
night the differences between the two
sections might come to light when the
report or the resolutions committee
reaches the floor of the convention to-
morrow. All resolutions adopted in
sectional meetings will be considered by
the association committee and final ac-
ton be taken by the convention as a
whole
The question of par clearance, with
which the State bankers dealt in their
section resolutions yesterday was
passed over in the convention TODAY
The special committee considering IL re-
ported progress" and was instructed
TO continue its work. It's chairman, NJ
j. Bowling of Olivia Mimi. however.
told the convention the only remedy
he saw for the country bankers who
favor collection charge on checks
was amendment of the Federal Reserve
act.
The crop financing corporation project
TOOK shape at an informal meeting of
several hundred bankers and representa-
tives of cotton interests. A snecial
committee, headed by Robert F. Mad
dox of Atlanta. presented a favorable
report.
Tentative plans would enable the cor
poration to handle all kinds of agricul-
tural commodities, but leaders in the
movement aimed at the relief of the
cotton industry as its primary object.
Speakers, however, pointed out benefits
which they believed would be derived
by all producers of farm products.
Makes s6O,OOO,OOO Available.
The plans provide for stock subscrip-
tons on the basis of 81 bale on cotton
produced in the various States and the
payment down of half of the amount |
or 100000 of the incorporated capital. |
Under the Edge act such corporations
are permitted to handle trade accept
ances or purchasers agreements to the |
extent of ten times the paid in capital. |
which would enable the corporation to |
deal in such commercial obligations to |
upward of s6o,000,000 This amount,
speakers declared, should be sufficient /
TO meet the demands OF the South.
Although specific mention was avoid /
ed. speakers indicated that establish \
mert of the corporation would mean an |
early opening of sales negotiations with [
European manufacturers who were said
to be in the market for around 100000 |
bales of cotton.
Mr.. Maddox declared that the cor
poration was not proposed in any sense
as a vehicle for the holding of crops
but as n facility for their marketing.
The National Bankers elected officers
to-day. choosing II. III. Mckee. presi-
dent of the National Capital Bank,
Washington. ID. c., as president John
G. Lonsdale. president of the National
Bank of Commerce. st. Louis, vice.
president, and Waldo Newcomer. presi-
dent Of the National Exchange Bank of
Baltimore. chairman OF the executive