Historical Newspapers of South Carolina

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BANKtES APPROVE Till ST. LGUIS HAN liECWF.MKND STATE HANKS TAKE . >v>., >1?? (tAAi'd.'l I ?i i v l'.\Ki ur jur.i.1 Sout'i Carolina Currency Association Fully Entlorsts Plan to Save Cotton. Columbia, Oct. 9.?Out of the hundreds of plans t'.'.at have been suggested r.or handling the cotton situation there is one that is now taking very cieimite anci exact s^ayc. xi io regarded by those who have studied it as the one really practical plan of providing prompt relief to the Soui'h,, in that it undertakes to raise and put i in the hands of the Southern people | $150,000,000. The plan has the an \ proval, so it is understood, or" the secretary of the treasury, McAdoo, and the federal reserve board. It is workable and practical. Several days ago Mr. E. W. Robertson r>rp?;idpnt of rhe National Loan and Exchange hank, was asked to be one of ten Southern bankers to meet with Mr. Festus J. "Wade, of St. Louis, to consider what is now called the St. Louis plan, ilhe idea was to Cave a conference of the leading bankers, one r\? r"U r l*i orn Qin n n cdl ii vi t il\i ijv/uiuvi u vvaav*. have these bankers carr'yi home details of the plan if it met with t':is . central committee's approval. Mr. I Robertson was largely instrumental in to shaping the plan and as soon as he J returned to Columbia called a meeting o: tfce Columbia Clearing House as sociation wnicn heartily approved me \ plan. He Cien' took the matter up with the executive committee o': the South 'Carolina currency association, which also approved it, and today it secured tihe 'hearty and unanimous approval of the executive council of the South Carolina Bankers' association. ^ There were present the following; Those Present. i Chas. J. 'Shannon, Jr., president South Carolina Bankers' association, Camden, S. C. i Jno. M. Kinard, on airman executive ' council, Newberry, SC. C. Bright Williamson, Darlington, S. C. Harry A. Caltoun, Barnwell, S. C. TV. T. Bailey, Greenwood, S. C. Em&lie Nicholson, Union, S. C. The following bankers and others not members of the executive council r were in attendance by invitation: T. S. Cave, director nome l.u-vk, \ Barnwell, S. C. J. P. Mathews, cashier t e Palmetto National bank, Columbia, S. C. Edwin W. Robertson, president the National Loan and Exchange bank; "P. A Tavlftr rtrp^iHpnt r.hp. RjuiJv nf Columbia, Columbia, S. IC. K?Ml, Columbia, S. C. Lbwft W. Parker, Greenville, S. C. ? T. B. Stackkouse, Columbia, S. C. ^ Sir. J. *M. Kirxard, o): Nfawberry, clxUrA man oi' t. e executive council, sailed ^ the meeting to order and preaj?-d. Mr. It. Carlton fcV right acted as s&zW rAfoWi r X ^ JL J As a result of tl^? deliberations t-'.cfollowing resolutions offered by Mr. J. L\I. Kinard were unanimously adopted: "Resol.ed, That tl.:e executive council o the South Carolina State Bankers' association hereby approve tiie St. Louis'plan wi'; i regard to the financing of the cotton crop, as outlined and r\ t rr onr] ]">aonti_ eApmiilCU at llliS UICCUI15, Ciiiia inui n. ly re coir mend to tlie banks of the Stace of South Carolina that they subscribe immediately to their proportion of t>_e proposed $150,000,0*0 loan t fund. L "'Resolved {Turtker, That Mr. Edwin W. Robertson be, and he hereby is, m authorized and requested on behai>. of f this council to communicate to Mr. ^ Festus J. Wade information of 1 e ac tion taken at this meeting." Robertson Explains. Mr. Robertson was called upon to , explain fully the plan, and he made it quite clear that the purpose of the undertaking is to handle the surplus . cotton crop with the $150,000,000 syndicate which is to give notice to t&e world that it is the intention of America to protect its chid? food produci ins: croD. It was stated that before the undertaking was started u..at $50, 000,000 of the fund had been pledged in Xew Aork city. Ffhe East and West will raise the other $50,000,000. and it . will therefore be incumbent upon the South to raise $50,000,0Cu to protect its own crop. In ot-ier words, for every dollar the Soutf.: puts into the fund the North and East will put two. IAllcmer centra: mea vl ue jjiau .s that tie growers or owners of the cotton will continue as its possessors and there'b4}" be interested in the increase in price of future crops. The plan o.* the syndicate is simply to loan not more than six cents per pound on the cotton and in that way provide funds n-r\A raTia' "VJ'- AV'irlo l\''w n <5 ICl JLi U 1 V.UV.4 . .Ul. ?? ?. ed on the plan very thoroughly, has sent sut the folloing skeleton which gives the c .ief points of this most important undertaking: Outline of Plan. To be formed by inviting subscriptions from the national and State f banks and trust companies 01 the I country, merchants and others. This syndicate to b?.' managed by seme important firm experienced in that kind of tranacdon. assisted by an advisory committee o. prominent bankers and experienced cotton handlers. i: Is expected t-.at New York ci as the centre of finance in the coun- ! trv will subscribe $30,000,000 to this ! t fund, and possibly more. Xot less than one '..undred financial ppntrpc; will hp asked to contribute to the fund, and to undertake to provide adequate, sai> storage facilities for the surplus crop, and to issue a uniform warehouse receipt i*or cotton, to be used as collateral to loans. How tiiis ./und will be loaned: Eacfinancial institution?national, State banks and trust companies?to make loans to importers, manufacturers, buyers, merchants and cotton pro ducers not to exceea o cems per pound, receiving the no-es of the borrowers, drawn to the order of the loaning bank and collateraled by cotton in warehouse represented by uniform. nesotiable warenouse receipts attached to t;.e notes together with insurance in fa.or of the loaning bank. The note, t\:e warehouse receipts and insurance certificate to be endorsed by the borrowing ibank. The integrity and reliability of the warehouse to be guaranteed by the banks at that place, acting through the Clearing House association or otherwise in concert. The loaning bank would obtain its money by forwarding the note a-d collateral, bearing its endorsement tj the nearest agency (bank) of the syndicate; the agency (bank) would rediscount the note and reimburse itsel; by f'roivincr nr?r>r, thp svnds'rate managers advising t'.:e syndicate managers ihat the loan had been -made in accordance with prescribed rules a.id conditions, and at it (agency bank) neld the note and collateral in trust for account of the loaning syndicate. The bank first making the loan it1 ^ ffV? a in cn ro \ SfcJia lU lUUft. anci iuouia.uvt < .iu attend to all necessary renewals thereof. and payments of premiums; and mat bank having endorsed the note could be relied upon to do so. AH notes snouia De maae payauit: m tr.:e agency bank, and that bank, having originals, received New York exchange i.or it-he proceeds of the loan, would ~ave to furnish New York exchange for remittances to the syndicate manager when the loan should be liquidated. Duration of loans: All loans shall be made payable one year after date (or earlier at borrowers option.) with the right on th.? part of the agency of ; i^e .und ?U> extend such loans for a ' term of six and for a farther j term at a second sdx months, after i rec?iri)ii5 t e approval of the syjuli eaie managers. Rata of interest: this f.uncV is made up to imeet an emergency, it is net intends*! that it shall be pu+ into competition against usual loans made j uy financial 'institutions which usual ly loan upon cotton; therefore the interest rate would have to t>. -nore than 6 per cent per annum. It is not believed that a syndicate to furnish i this large amount of lyoney could be , organized in these times of hig?: rates to yield less than 7 per cent per an- i num. net,to toe members of the syn-1 dicate furnishing tie money, in addi- | tion there would be various expenses , to be met, such as proper compensa- ! + i<-vr< for* ccirvir>o tr> flip ?vnrHr?ntp man VU ^ ? AV/V vw V** v agers and to the agency banks; also for printing, postage, advertising and various other expenses whica would be certain to arise and as it will involve an immense amount of detail to handle the fund, a charge of 1-1 Oth of 1 per cent per month would be made - - . to meet all these expenses; tiie iaea i being not to encourage the holding of cotton beyond a period at \v'.:ich it should be sold at a reasonable price. Clwrleston 3Ien \pprove. The members o. the* South Carolina Bankers' Conference, who met here today, had the following telegram from enarieston: "IV: e Charleston bankers met last evening and will bear their portion of the-lean as proposed at the St. Louis meeting. (Signed) "W. A. King McDowell.'' During the progress o:' the meeting Mr. R. Goodwyn Rhett called over long distance telephone and reiTerated t!'::e promise of co-operation on the part 0'.! the Charleston bankers and inquired as to details. It is to be noted that one of the features of the St. Louis plan is that the bankers that lend their money on cotton will not make money on the direct t f<-> n r- o of i /->vi Knt r,1 oir rownrrl will V>o l> ClliOUV. WIV/li J T. - A A KS in securing money with which to relieve home conditions. Mr. Robertson, at the request of the South Carolina Bankers association, has notified Mr. "Wade of t'l:e approval of the plan first by the Columbia Clearing House association, then by the bankers of Charleston, then by the South Carolina currency association, and today by the executive coun m?llllWMB?I RESERVE BOARE FOR I THE ST. LOUIS PLAN - FAVORS PKINCIPLK OF U?0 LOAN ON COTTON (iovernor Hflmlin Says Just Ariuiinis- \ tr.ition 01 Sue-li Funds Would Benefit Nation. ? 1 Y\'ashins?ion, Oct. 10.?'The federal reserve board toni??:t announced its approval in principle of the plan or a $150,000,000 loan fund to take care o>? toe surplus cotton crop. Governor Hamlin, of the hoard, in a letter to Festus .7. Wade of St. Louis, I one o1: the hackers of the plan, said 1 while the board could not express; it- I self upon details, it was of the opin- I ion that the just ad-ministration of * such a fund' would benefit those inter- 8 ested and the rest of the nation as J well. He expressed t.e hope that f banks and merchants would subscribe, | His letter follows: "The federal reserve board has giv- jj en care.ill consideration to your sug- 2 gestion that a fund of $150,000,00 be I raised by subscription from banks, | trust companies, bankers and mer- \ chats for the purpose of rendering- ? assist a sice to the cotton growers and ? merchants of the United States until k the present abnorma'. conditions caus ed by t'he European war have been ter- ? mmatea ana normal concisions restored. Would Do Great Good. "I am directed by 'tire board to state to you that while it cannot very nat- | urally, express itsel'f upon the details a of the plan as to personnel of man- | agement, commissions, interest rates, etc., it is of the opinion that tee raisins' of such a fund of the amount indicated and its administration justly and fairly, upon reasonable terms and conditions, would go far towards the restoration oJ normal conditions and would redound to the benefit, not onl'y of those interested in the production movement and manufacturing of cot+oti hut as w?n thp Amt.irA nP'onle rvf the country. "We note with gratification your assurance that a large number oi' Southern banks and commercial firms jbare already signified their willingness to contribute to such a fund and ] your expression of confidence that the entire amount will he subscribed. "The problem involved is not local? it is national and, as well, internationin its scope and importance-? and we ! venture to express the hope that sub- I scriptions to soich a fund' will be made by banks, trust companies and ! merchants throughout the country.'' : I In 7'Temorian. Hryaa . Tayior V-ow 1 ^ it-* son \ of Mr. and ;Mrs. Pierre P.a" ' . \ born Mar 2.~, 1 f? 14. departed iiiis lif;: ! Octribe1* 1, 191:3, <i~cd ! 'DMijiiw ftn.i ; 5 cte'f's. Thus- he came r~ I sunbeam to brighten the'r h-^r.v I through one swjprt summer. He leaves manv lovprt nnac wIia tviII I cherish in their hearts a tender memory o1.' little Bryan, and while they deeply mourn t.eir loss they are assured that he is "Safe in the arms of Jesus Safe on His gentle breast. There by His love over-shaded Sweetly his soul shall rest." Mrs. M. L?. H. : cil of the Sou't?- Carolina tSate banks. The South Carolina currency association. which h-3S 1 r? fh^rcrp the I ... . | prcval of t'.ie request for emergency act, had a formal meeting. The minutes of t" is meeting will be realized as representing all of the national banks of this State, and the following extract is taken from its (formal min utes: ! From t lie Minutes. "Mr. W. A. Clark presided at the : meeting and (Mr. Charlton Wright act- ! ed as secretary. ''Upon calling tee meeting to order }Ir. Clark stated that it had been as sembled lor the purpose o' hearing 5 Mr. Edwin i\Y. Robertson's report upon \ the conference which he attended in * St. Louis on tfce ">tn of October, ax the | request of t'.e Hon. Wm. G. McAdoo, \ secretary of the treasury, where a cer- \ tain pi an ior tne nnancing or the cotton crop was laid before the conferees "by Mr. Festus J. Wade, of St. Louis, Mo. "After the meeting had beard Mr. * Robertson's report a full discussion ol the subjejct followed, at the close of j A T 7- T> fJ? To Ar nrl 4 rN I ? Aiivn ^11. 'i. JL Civ* iUl VUU1CU IIIC 1U1" . lowing resolution: " 'Resohed, That Hi is meeting unanimously approve of the St. Louis plan with regard to financing the cotton frr>n y?rr7 nmhnrizp "Mr I'M win ~\V Robertson to sta.? tr.iat South Caro- [ lina will subscribe its proportion of I the 1 unci to be raised.' "This resolution was duly seconded and unanimously adopted and IVIr. Robertson was requested to communicate the action of the meeting to }8r. Wade, who is now in Washington, D. C., for the purpose of co"fcfrrring with Secretary McAdoo." | ^ \ ^ J^j I We are I pound to a white cotton Our hone I i*/n>irnru/PtL'>d i | V f / f a w vi.' w * | will be able farmers on able rate, I S.B.Aull . gr, is prepay \ | ers cotton. 1 S milium | In J I I I 1 ll 4 | rayi i I i j Summer-Wi nav ahnv#? cotton and r or notes anc Brmcr in vc u 1 I seed and ge II 1 1 | Summ I ( i . ,1 jj NEWB] am?EWHiai?^?i II? ! mmji^LkiiiMMMiiiw /&&i nv tv if' ??w? maem v wuvttvu/v*-mmmwmm ?WD?PI i-aSaCftSr-i-Ka ^ZMia?%5tiaa6to"A*MiW^?lflCeij*kei6aWetvM paying ten a rll miv m/<stnrr ? vy w i v wv v vx f f a on account. warehouse Jl j ^ ?* MA W /VA O ti a few uuy&i to loan mom m long time at a , an experience< 1 , . 1- ^ -ea to weign zn ket Pric ise Stock Comp the market pi rntfrnn sppn in r ? r i accounts. >ur cotton and I _ * - - ?L JL :t siraigni. i er-Wise St Company ERRY, S. ?PA1T I znts per 1 lers jor ? will he I U/IU IVV >y to the ? reason- I d weigh- J \n 4- nvm ? I to J U1 f I *? Q2^2jm3B58BflB5jEi23BSBHHBj i HDDBOVX VVMHBMMMBMMMHn. H IHIiliHlilT . ?6 es any will I rice for I >ayment I cotton | ock I c.