The Birmingham age-herald., 1907-12-04
Farmers Union Behind Meve- ment To Assist Producers in
 Holding for Higher Prices
SCRIP WILL BE ACCEPTED
 BY BUSINESS CONCERNS
Plan Not Yet Officially Adopted By the Executive Committee of Union, But a Meeting Will Be
 Held This Week.

The lending of 7c per pound on cotton,
 which will be paid in scrip that will pass as readily as the cashiers checks now in circulation in Jefferson county, is the plan devised by State Agent B. F. Parker of
 the Farmers union, and W. D. Nesbitt,
 manager of the Warrant warehouse and
 associate railroad commissioner. By this
 arrangement it is believed that about sS50,oo0 can be put into circulation, and at
 the same time allow the farmer to retain
 title to his cotton, thus giving him the
 advantage of any increase in value which
 may occur, and helping him to hold out for 15-cent price.
 All of the large merchants buying cot ton in Birmingham and the banks as well
 have agreed to accept these notes or scrip at their face value, which means that 1t
 will pass anywhere in the county the same as actual currency These mer-
 chants are w. S. Brown & Co.,, Sam
 Teague, Drennen & Co.,, A. B. Wander
 grift & Son, and Yielding Brothers &
 Co.,, and at conference with MT. Nesbitt they agreed to accept these notes in pay
 ment of old accounts or the transaction of any other business.
 MT. Nesbitt also held a conference with a number of members of the Wholesale
 Grocers' association, at which the firms represented agreed to accept this scrip in their dealings with the retailers, or in any other transaction.
 How the Plan Works. The farmer will deposit his cotton in the Warrant warehouse and will sign his note for the amount of each bale at the rate
 of 7c per pound, naming the bale as se- curity. These notes will be due July l, 190S but can be taken up at any time the
 borrower may wish. Thus, if cotton
 should go to 15c within the next month
 or two it could be sold and the farmer get the benefit of the enhanced value. The farmer will be paid in scrip for the amount of each note. The notes will bear
 interest at the rate of per cent.
 This proposition has not yet been off cially adopted by the executive commit
 tee of the Farmers union, but it will be considered by them within the next day or two, and, it is believed will be readily adopted. It is proposed to start with the Warrant warehouse in Birmingham, and if it proves successful to put 1t in opera ton throughout the state at all the union warehouses.
 Local Spot Quoted Higher. Local spot cotton was quoted 1sc higher yesterday, which is the rate at which it has been advancing nearly every day for the last two or three weeks. Strict good middling was quoted at 11Ac with good middling 1sc under, and prominent cot ton man remarked that it was slowly but surely climbing to the 15c mark It is the
 belief of the Farmers union officials that
 the storing of cotton in this manner will have a very decided effect in the forcing
 of the price to 15c per pound. It is esti- mated that 10000 bales could be stored under this arrangement in Jefferson coun- ty alone, and with it working throughout the state it would mean the holding of several hundred thousand bales The Farmers union has over 5000 members ! { 1szLa laa