The Barnwell people. (Barnwell, S.C.) 1884-1925, November 05, 1914, Image 6
■
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 . • .