University of South Carolina Libraries
■ SHUTS LOAN FUND HTUU IF riinsu CITTIH UMUEEICEUEHT OFFICIALS CONFIDENT SrfaeMM! Is Laid Before Bankers All Over Coantry—Buffloient BespopMe Kspected by Knd of Week to Pat Plan Ttu-ongh—Southern Banks Must Take One-Fourth. Full details of the plan for a $135,- 000,000 loan fund to take care of the surplus cotton crop were made public Tuesday night by the federal reserve beard. The board’s outline of the plan was sent to clearing house asso elations throughout the country. Re sponses are expected .before the end of the week and officials are hopeful that the plan would met with suffl- otm banking support to make its adoption certain. “ft is proposed to create in the manner hereinafter provided a fund of approximately $135,000,000, to be known as the ‘cotton loan fund,' and to be used for the purposes herein ■tated. Subscribers to this fund shall be divided into two classes, to be des ignated, respectively, as Class A and Class B subscribers. Class A sub- ■crlbers shall consist of banks and other corporations, firms or indlvid- uetw.located or residing in other than the cotton producing states of Ala bama, Arkansas. Florida. Georgia, IxmJaiana. Mississippi. North Caro lina. Oklahoma, South Carolina, Texas and Tennessee. ' Class “A" Hubscriptlon. “Ail Class A subscriptions shall be contingent upon the receipt of sub- ■criptlans of that class aggregating Clasa B subscriptions •ball be made by banks or bankers located or residing In the cotton pro ducing atatea above mentioned, and ** hereinafter more particularly ex- plalaed. No Class B. subscrlptons be required except as a condl- i of a loan or loans to be made out fund to be created, and in such OTPOJ subscriptions shall not be re- dpAred to exceed S5 per cent, of the .amount of the loan applied for. , “Bach subscriber shall, upon the payment, ta whole or In part, of the it-sabaerVbed for, receive a par- certificate, transferable on • fepofcs ol the committee, showing i its face the class of subscription ited thereby, and specifying under which the owner will be aatitled to share in the distribu- Uea ft fbe moneys realized from the toe as made from the fund created. • S“A11 Claes A and Class B rertlfi- «atea shall beer intereat at the rate of f^eteeet. per annum, payable quar- Aertjr Administration. - “Hie cotton loan fund will be ad- listered under the direction of a to be known as the cen seal committee, and to be composed ■ of the individual members of the fed- -aral reserve board. The central com- mMtfsb shall appoint a committee for the general administration of the fond, to be known as the cotton loan committee, and shall delegate to Such imittee sack powers as may be to properly carry out the purposes of this plan. “The cotton loan committee to be named by the central committee shall consist of the following: W. P. O. Harding, chairman, Washington, D. C.; Paul M. W arburg. Washington. D. C.; Cel. B. M. Mouse. Austin. Texas; Albert H. Wlggln, New York; James 8. Alexander, New York; James B. Morgan, Chicago. 111.; Kestus J. Wade St. Louis, Mo.; Levi L. Rue. Phila delphia. Pa.; WUUam A. Gaston. Bos ton, Mass Bob-Committee “The cotton loan committee shall In turn appoint committees in each of the cotton producing states hereinbe fore named, the title of such commit tees to include the name of tbe state In which such committee shall be re quired to act for the cotton loan com mittee, and each State committee so appointed shall in turn appoint local committees in sufficient number to safeguard the practical workings of the plan. All committees appointed to be subject to the approval of the central committee and all committees to serve without compensation o£ any kind. * “The banks of the city of New York bare pledged themselves to subscribe to fifty million dollars of the one hun dred million dollars of Class A certi ficates, provided the remaining fifty mllttoa dollars shall be raised within a reasonable time under the super- visioa of the central committee by banks in non-cotton producing states. 6 Per Cent Interest. “All loans made from the fund created shall bear interest at the rate of 6 per cent, per annum and all ap plications for loans must be made through banks or bankers who shall In each Instance accompany the appli cation for such loans with a subscrip tion to Class B certificates in an amount equal to 25 percent, of the amount of the loan applied for, The anbecrlber to Class B certificates ap plying for a loan for a customer will not he required to endorse the note of ■ueh customer and shall not be en tiled, or permitted to receive from ■ach customer the payment of any > commission on account of obtaining Mch “All loans mad* shall be first ap- by the proper local commit tee. by tbe appropriate state commit tKO and by fwb members of the cot ton loan committee. When appllca- wwr as above provided the notes cing same, together with the required under the terms d this plan, mast be forwarded to Ike office of the eottoe loan commit* as to the disposi tion of the proceeds and must, as stat ed. be accompanied with the Sub scription of the bank or banker for warding the application to an amount 'of Class B certificates equal to 25 per cent, of the amouat applied for, / Class B HnbsciipUons. “In order to make the subscriptions tb Class B’ certificates immediately avSliable, each subscription^ accom panied by an application for a loan must be accompanied by a New York draft of the bank or bankers through which the application is made, drawn to the order of the cotton loan fund, or in such manner as the cotton loan committee shall designate, said draft to be for an amount equal to 25 per cent, of the loan applied for, and upon the granting of such loan Class B. certificate for this amount shall be Issued. In this manner 75 per cent, of each loan will be provid ed by the fund obtained from Class A subscriptions and 25 per cent from the Class B subscribers. “All loans shall be evidenced by notes In form approved by the cotton loan committee and shall be secured by cotton on the basis of 6 cents per pound for middling in addition to the guarantee fund hereinafter described. Warehouse Receipts. "As evidence of the securtw'offer ed. each note tendered with an appli cation for a loan must be accom panled by receipts of approved ware houses and by evidence of proper in surance. All cotton accepted as se curity must be located in warehouses or other buildings under the owner ship r.nd control of some person, firm or corporation other than the bor rower, and in approving such loans the local and state committees shall respectively pass upon the sufficiency of such warehouse receipts and in surance, and shall be satisfied that such cotton is free from all liens ex cept that created by the loan or loans from the fund to the borrower for which such cotton is pledged os part security for such loans, and the com mittees approving such loans shall likewise be satisfied that the cotton offered as security is of the grade or quality specified in the application.' “All expenses, such as warehouse charges and insurance premiums, shall be borne by the borrower. AtMHioMl Security. In addition to the security herein before. specified, every applicant granted a loan from the fund shall pay to the cotton loan committee a sum equal to 3 per cent, of the face amount of the loan granted and the applicant shall autharize the cotton loan committee to deduct or withhold this amount from the proceeds of such loan. AD sums so paid together with alt the Interest earned from the investment thereof chall constitute a mutual borrower's guarantee fund to be used, (1) for the payment of ex penses of administration, which it is estimated will la no event exceed 1-8 of 1 per cent, of the loan fond creat ed; (2) to make np any deficiency In the amount available for payment of the Claas A and Class B certificates with interest resulting from louses sustained by reason of any loans made from tbe said loan fond, or otherwise; the balance, including all Interest earned thereoa, shall ha re turned pro rata to the borrowers. The cotton loom committee shall control the guarantee fapd so created and may, in its dlacreitian, invest ail or any portion thereof of Class A cer tificates herein provided for. Mature Before February, 1018. ‘All applications for loans shall be made not later than February 1. 1915, and all loans made shall ma ture on or before February 1, 1018: Provided, however, that the central committee, in its discretion, may authorize the cotton loan committee to extend any or all loans for a period not to exceed six months after Feb ruary 1, 1916, if, in the judgment of said central committee, conditions at that time justify such extensions. Calls for payment of subscriptions to Class A certificates shall be made as nearly pro rata as possible. In the event that on February 1, 1915, rp- pllcations for loans shall not have been received to the extent of the full amount subscribed, the fund shall, nevertheless, be closed at the amount then appled for and loaned, and Class A subserbers shall thereupon be re leased from the payment of the bal ance of their subscriptions which have not up to that time been called for: Provided, always, that the fund shall not be construed to have been established for any purpose until Class A subscriptions shall have been received to the extent of $100,000,- 000. As to Repayment. "As moneys became available, for repayment to the subscriber, they will be applied against both GJass A and Class B. certificates, but the per centage of reduction In the case of Class B certificates shall be one-half of that in the case of Class A certifi cates until the amount of the latter outstanding shall be reduced to -the amount of Class B certificates, then outstanding, after which the percent age of reduction shall be the same. "For example: If a payment Is made on the Class A certificates to the extent of 10 per cent, of tl)£ face amount of such certificates'then out standing, a payment shall at the same time be made upon the Class B certi ficates to the extent of 5 per cent, of the amount then outstanding. “Again, tf a payment oh the Class A certificates is made on an amount equivalent to 1$ 1-2 per cent; of the amount then outstabdlng, at the same time a payment on account of Class B certificates win he made of an amount representing 1 3-4 per cent, of the aggregate of Claas B certificates then' which method of pay ment shall be ■ continued until the amount of the two classes of certfl- c&tes outstanding shall bo the same, after which all sums distributed shall be divided pro rata among all certifi cate holders, regardless of, the two cl tmw ■ ■■. - A Berlin dir patch flat os that the British warships were driven back liondc^y by artillery fire. ‘ ■ Some people hunt trouble., some find trouble aad others bntt upon it . ‘ -4'* ’ *,# “Four Big Days of Fun and Frolic” 10,11,12,13,1914 Premium list Open to Orangeburg and Adjoining Counties. Write for Premium Book i, ’t JS»; Educational Day . Nov. 10 Coronation “Queen of the Fair,” and mammoth Automobile Parade . - Nov. 11 Confederate Veterans Day • . . . • Nor. 12 Negro Day . . . . Nor. 13 o v; Automobile Races Nov. 10 and 11 w Horse Races Nov. 12 and 13 FOOT BALL BAMBERG HIGH SCHOOL Wednesday, Nov. 11 ORANGEBURG HIGH SCHOOL VS. % • W ^ / Thursday, Nov. 11 STATE COLORED COLLEGE VS. NORTH CAROLINA COLLEGE BIG MIDWAY-BEST FREE ATTRACTIONS Grounds Improved—Horse Arena in front of Kg Grand Stand—Football field inside Race Track. TAKE A DAY OFF-YOU DESERVE IT FASTER THAN EVER - v - ■ •• , . r ii i —■ — — NUMBER Of RALES SINNEB TO ICTOKI It 4214128 FIGURE BREAKS RECRRD Southern Partners Gin More 1 Rales Be tween Sep IS Hum Ever 25 and October a Similar Period — Depreseio Trade Seems to Have Oottoa Effect. The depression' In the cotton trade has had no effect upon the ginning of this year’s bumper crop, which Is In dicated as the country’s second in polpt of production. In fact, ginning was more active during the period from September 25 to October 18 this year than ever before, 4,216,629 bals having been ginned, against 4>Q82,(127 bales ginned In that period In tho record crop year of 1911. Up to October 18 there had been ginned 7,610,083 bales, the .census bureau announced Monday. This Compares with 6,973,518 bales last year and 7,758,621 bales l*; 1911. Arkansas, Louisiana and Mississippi had ginned more cotton to October 16. than ever before to that date. (titrd coffon”gTnn?ngTepo the seasoa, complied from reports of centos bureau correspondents and agents throughout the cotton belt, announced that 7,610,682 bales of cotton, counting round as half bales, of the growth of 1*24 has keen gin ned prior to October 18. This com pared with 6,973,518 bales, or 49.9 per cent, of the entiTj crop, ginned prior to October 18 last jnear, 6,874,- 206 bales, or 51 per cent, in 1912, and 7,758,621 bales, or 4'9.9 per cent, in 1911. The average quantity of cotton ginned prior to October 18 In the past seveh^ years was 6,182,481 bales, or 48.8 per cent., of the crop. Included in the glnnfngs were 15,- 239 round boles; compared with 49.- 620 last year. 41,743 in 1912 and 53,858 in 1911. Sea island cotton included number ed 30,078 bales, compared with 31,- 139 bales to October 18 last year, 15,- 960 bales ia >912 and 40,303 balee in 1911, _ . Ginninga prior to October 18, by states, with comparisons for the past three years and the percentage of the entire crop ginned in those states prior to that date in the same year follow. Alabama. > Year. Bales. 1914 : . . . . . 810,786 1913 . . .... 839,899 i* 12 . .. 691,954 1911 .. ... , . 838,617 A V Arkansas. f914 X ., 397,031 1913 .. . . , . 322,181 W6 . . ,. .X 300,351 1911 .3 ... 278,238 Florida, s. 1614 .. 43,313 1913 ,, 35,956 1912 .... .. 23,576 1911 . . . .. . . 43,D09 Georgia. 1,364,013 1>. C. 56.6 44.6' 49.5 31.0 39.0 30.6 53.8 40.1 45.5 1614 1*12 1612 22t?9<* 164.03*^ 203,127 67.5 54.2 r- 1911 , . .. 176.904 Mississippi. 46.5 1914 . . 474,33* • • • • 1913 . 435,690 34.8 1912 . , .... 347,130 34.5 1911 . 386,016 North Carolina. 33.0 1914 301,077 1913 . . .. .. 252,193 30.1 1912 . 356,226 39.3 1911 , 438,266 Oklahoma. 38.9 1914 . 450,657 1913 •. . . . . 391,259 4C.4 1912 . 398,345 39.6 1911 . 396.739 South Carolina. 3 9.0 1914 . 693,392 . ... 1913 . 619,720 43.7 1912 . 44.1 1911 . 788,927 Tennessee. 46.6 1914 . 103,970 1913 . 131,933 36.0 1912 . 66,719 24.9 1911 . . . . . . 125.791 Texas. 29.3 1914 . 2,712,712 1913 . 2,451,279 65.0 1912 . . .. .TS,299,621 69.5 1911 . . .. '..2,700,037 All Other States. 65.7 1914 . . . . . . 34,433 27.0 1913 . 32,464 1912 . 23,696 26.3 1911 . 33,359 34.0 Clonings of sea island cotton prior to October 18 by states; - South Year Florida. Georgia. Carolina. .13,738 .12,259 15,884 .17,868 8,148 Americas Tanker is Freed. The British government has releas ed the oil tanker BrindiUa, following the protest of the .American govern ment. NOT AFTLU Germany Has No Intention of Attack ing or ColonAzlng Canada. “The German point of view is that by joining in a European war Canada has put herself outside of the pale oi the Mecroe Doctrine but Germany has not the intention o( attacking Canada nor colonizing Canada.’’ This statement was Issued at Washington Monday by the Germany embassy. The statemeot was an amplification of the view expressed by Count von Bernstorff, the German ambassador, that by taking part in the war, the Canadians have justified an aggres sive campaign against Canada. “To further explain the reason that caused the German government in a formal note delivered to the state >le- r partment by Count Bernstorff, volun tarily pledging Germany not.to at tempt colonial expansion ^n South Amerca, no matter what the outcome of the war, the embassy issued-this statement: "The note was written at that time because Winston Churchill had said In his message to the American peo ple, that If Germany was victorious in the present war, she would attack the Monroe Doctrine.’’ Portugal May Enter War. Three Portugese officers conferred with British military leaders Tuesday to learn in detail the co-operation which Portugal could render if she entered the war. .. Adar-msgursrt. J sneaked into a Malay port and sunk a Russian cruiser and a French de stroyer. We see where Uncle Sam is about to protect law and order la Port-an- Price . ** v . • .