Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 191?-19??, 1914-08-13
Go1DsBoRo N. @. THURSDAY EVENING AUGUST 13 1914
DIVERSIFIED CROPS
HAS BEEN ADVOCATED BY ALL
AUTHORITIES FOR A GREAT
MANY YEARS.

MANY YEARS.
The following letter from Mr.. Hugh
McRae explains itself:
HUGH MacRAE & COMPANY,
Bankers.
Wilmington, N. c., AUg. Z, 1914.
Mr.. M. j. Cor5ett, President,
Chamber of Commerce,
Wilmington, N. c.
Dear Sir:-As much consideration
! is being given to the ques Ion of TAX
ing care of the present cotton CROP
| for the benefit of the farmers, and as
this question underlies the whole fl
nancial fabric of the South and as
matter of fact also Of the entire
country, it presents the most serious
| problem of tie moment. l an taking
the liberty of suggesting plan which
| looks as if it would prove automatl-
e2lly effective. l can even believe
that this crisis will prove automatical-
| ly effective. | can even believe that
this crisis VIII prove of great value
to the farmers and to the South if it
an opportunity for the farmers to try
out the plan of diversification of crops
which they are more than half con
vinced is the right road TO prosperity
and diversifcaticn of crops has been
advocated by all authorities and ex-
perts for a great many years.
The plan is to secure the coopera-
ticn of the United States Treasury
Department in making available for
the use of Member Banks in the new
the sum of $500, 100000, under the fol-
lowing conditions:
A farmer, or cotton planter, to
have the right to go to bank on
| or after November let and arrange
to borrow at the rate Of ten cents
per pound On one-half CT the cot
ton which he raised on his farm,
the valuation to be based on mid
ding cotton; the loan to be made
| for a period CT six months, with
| privilege of renewal for six months
additional; the cotton to be stored
and insured in a manner meeting
with the approval of the bank; the
bank to have the right to re-dls-
count the note in a Reserve bank;
and tie lote given to contain the
stipulation that the farmer maxi
| ing the note would next year
plant in cotton only Cne-ha1f the
| acreage which he planted this
| year, and would pl:nt the balance
| in corn, or other grain or forage,
| the farmers note to mature at any
| time within the second SIX months
and become payable at the option
| of the bank if it is found that the
| farmer has not complied with the
stipulations of his agreement.
In case tie war in Europe con-
tinued until the first of April next
year, the farmer would egree to
| plant not exceeding o1e-fOurth of
his land in cotton, and the balance
in grain, unless a general release
was given from the agreement By
the Treasury Department, or the
| directors of the Central Reserve
Bank.
The effect of this agreement would
be the certainty that every bale up tx
one-half of the present crop woult
sell at ten cents per pound or better
because the American mills could splI
that amount; also, that the other one
half of this crop, which in any even
{
bring a good price. Under the plal
the food supplies Of the world woult
be greatly augmented next year ant
might prevent widespread distress.
has never been practicable to get tn
farmers to agree among themselves t.
reduce the acreage, but this contrac
which agree among themselves to re
duce the acreage, but this contrac
: which each farmer would make wit
his local bank for the actual conside
: ration of receiving the, loan woul
bind him; and probably 95 per cent c
: the farmers would adhere to the stipu
lation without any inspection bein
necessary.
l This plan seems possible in the cas-
of cotton from the facts % that cot
S ton when properly stored does nc
y deteriorate, and (2) that the Sout
controls the worlds supply.
t The details could of course be elat
: grated, but the central ideas are, "a
S to eliminate one-half of the presef
c1op, which is not needed, is such
i way that it will not throw a ruinor
burden on the farmer, and (b) to kee
& the crop of 1915 down to such sma
g proportions that the one-half carrie
Ii over can be marketed at a higher pri'
than it's collateral value.
- The plan purposely offers no prote
Ii ton to the man who buys the farmer
cotton because he is supposed to b'
! only the first half picked and gimme
~ and to have either the cash or t
d. credit at his bank or he would n
v make the purchase.
Trusting that some satisfactory s