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STATEMENT BY SENATOR SMITH
In Reference to Loans on Cotton by u
the Reserve Board ei
Washington, Nov. 17.-The follow
ing statement is made by Senator E.
"I was informed several days ago ,
that there had been issued a circular w
by the Felderal Reserve Bank taking b;
such a position in reference to loans '
on cotton as resulted in breaking the
market. It was rumored that the cir- w
cular set forth that no loans should IR
he ma de on cotton when the cotton ai
was to be held tor specLulat ive pur- ti
poses and tha t all loans already made n<
en eetton whe(n the banks believed it t I
was being held forl like purpioses p]
should be called at maturit y.w
"Th is was such ani atstousting stateO tv
mnt ; antd it was so aribltrary and such ic
a radicalI depariture f rom the ordinary se
co nception of the dlutyv and rela tion of to
the people to the baniks that I called m:
uplon'i the Gvwerinor of the Federal Re.. h
serve.i Boarid tor ana expression on his I10
ari as to what we rt the fat and. m th~
what was the meaning of the ci rcu lar, et
if auch a circul.r existed. in
"Ft tranispired that th er- was-a cir- 01
- - pr' eto
.: BRAME DRU
.ilar, number 91, issued by the Re
ional Reserve Bank at Richmond and
ie following is the letter received by
ie from Governor Harding in refer
"November 14, 1919.
4y Dear Senator:
"Referring to our telephone conver
ition last night, I an% enclosing here
ith a copy of circular No. 91, issued
y the Federal Reserve Bank of Rich
ond, regar(Iing loans on cotton.
"I have had some Correspondence
ith the Federal heserve Bank of
ichmond regarding this circular, and
m assuredl that the natnk does not
Lke tLhe position that it would make
>loans whatever on cotton unless
ae grade is shown by r.he receipts
edged as collateral, but merely it
ill not assu-me' the value of'- even
v'enty-five cents a pound, unless the
ccipjts do indiat e the grade or other
tisftactory evidlence as furnished pis
wh'lat the grade is. Trhe''e are so
aniy d iferent tgrades of citt on andl
*e spreadl bet ween t~he vahI:v' of the
wetst and highest erIede'.so:-a
ait it seems to mie that some knowl..
Ie of* the tgrade is necessary' in lend
g ntelligently on (Ottion as collat
.WeNn hork to t pr i;.
- i uIn l .1 iv 1~ it, t i Ij1b~d
1h ii to? ectil , unul , a 'uer a,
m, nd$.20 cntlsa
-. ne Gnen Str
G CO, N. Wilkms,-- N. C.
mow the kind we sell
inute in Style and Que
i yours at 20 per cent.
rice. Discount Price
"It is quite clear to me that there t
is nothing in the circular to warrant a
the inference that twenty-five cents p
a pound is to be regarded as a min- e
imum salable value for loan purposes, n
as a matter of fact, we know that v
some long staple cotton recently sold
in New Orleans at seventy-five cents t<
a pound, and we also know that it is d
not unusual for the fluctuations in h
cotton to amount to as much as 200 e
points in a single day. 'Unless these n
circumstances, it seems to me that it
it is necessary to require a larger
margin in making loans on cotton
thian was the case when cotton was
selling at a much lower price and was
free of the extraordinary fluctuations
to wvhich it~ is now subject.
"1 need not assure you that I am
anxious that the Federal Reserve sys
tem should do evertyhing that it can,
with due regard to safety and the
wants andl requirements of cther com-.
mercial interests in the country to aid
((etton prodlucers to market their pro
ducts in a gradual and orderly man'
ner in ordler that no one would he
om ccid to sell at a sacrifice. The other
immbers of the board, I am assured,
feel as I (do in the matter; hut we
do not ,any of us, believe, andl I am
sure that you will agree with usx, that
ihhle l'ederalI Reserve Blank should be
1-:.ed as the medium to enable the
( wnersi oif iotton to wi'thhold it en
li rely from the mnarket with a view of
foicinig prices to ana unreasonable
\ery truzly your-,
signed) WV. P. G. Tlarding.
Iholly 11ill, Nov. 17. -This morning|
a bout I (('clock wvhat might have!
been a v'eiy serious acc ident ha ppen
('d near1 the town Ii mitL. of Ii ol ly 11ill.
I lobson inart. lBernarad If 't to, Coke
Iiut to and I Lawton K izer were ri
to-ning from St. George, when the
irad ius i-odl o fthe ir automiobi le gave
way. The car turned aciross the road
and t hen turned over a bout threeW
timlaes. comp lletely rever-sinag itself.
The car wa's demolished.
I'o ' o lia art anid hrnari F Iutto
each susitaiinedl a brokn c' ol lar- bone
and werec otherwise bru ised F a wton
K(izer received seve rad gashes about
he facs,s several stitihes being neces..
sary. Coke Jiutto was the only miem
hue of the party who escape-i unhurt.
AF[TERl AGITlATORs IN
NATIION'S ('OAF. AiINES
lnd inapol is. Ind ., Nov~emb er I17.
A fipnts of the buao in 'e-a.
I ALL -
Only the Newest, Be
dity. Don't miss thi
Reduction---20 per c
strictly Cash. r
on of the Department of Justice
re bending their efforts toward
revention of outside radical influ
nee being exerted upon bitumi
ous coal miners now on strike, it
ras learned today.
Reports of plans of Red leaders
go into the coal fields and urge
efiance of the law, and particu
irly the injunction issued in fed
al court here, to prevent encourage
ient of the strike, have reached gov
st and up-to
ent. Off Reg
ernment agents here, and steps ar
being taken to prevent the carrying
out of these plans. In one case, i
was stated today, an agitator wh
was on his way to the Indiana fields
was over taken by federal officers an
warned to keep away.
In a statement given out. toda
by Dap W. Simms, special Unite
States district attorney, in the coa
nuners' case, it was declared tha
miners as individuals are violatinf
SAY, you'll have a
af put pep-in-your-sr
ring-in with a jimmy
nail some Prince Albe
Just between ourselvesq, y'ou
ver will wise-up to high-spot
ione-joy until you can call a pipe
its first name, then, to hit the
ak-ok--pleasure you land square
ince Al ber t!
Well, sir, you'll be so all-fired
PPy you'll want to get a photo
aph of yourself breezing UP the
ce with your smokethrottle wide
en ! Talk about smnoke-spo~rt !
Quality makes Prince Albert so
J. Reynolds 'Tohneco Co
the injunction of the court 'when
they refused to return to work,
t "The miners cannot, collectively or
individually, do any act or refrain
from any act that will further; or en
I courage, or continue the strike," Mr.
Simms asserted. It was the strike
r itself against which the injunction
I was levelled. Few, if any, miners in
I the Indiana coal fields reported for
t work today and no mines were op..
noeotr al righiyul
pieo igaet apr n
rt~ fo pckn i
.ppalngal;aon the smok line
streak b our excluiv patte
rokedoyoul ge ioutyu ld yoummy
pipe or cthte papers anddo
ioe pA.ckrwhtng! yu
acci wo novpy reloroul
mal pon ip humd- mnwov
flecl gl humior yth s allr~ntfy
o e delcht reitandst I P. A
peothpanp.Wi ston. fld ln on