The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-08-15

McRae Il Company, bankers Of Will
mington. y. G., to the Wilmington
Chamber of Commerce which sug-
gests a plan for aiding farmers in the
present war crisis will prove Of inter-
est at this time:
Mr.. M. j. COrbett, President Cham
Der Of Commerce, Wilmington. y.
G.
Dear Sir: AS much consideration
is being given to the question Of talk
ing care Of the present cotton crop
for the benefit of the farmers. and
as this question underlics the whole
financial fabric of the South and as
a matter of fact also Of the entire
country, 1t presents the most serious
problem of the moment. am taking
the liberty Of suggesting a plan which
looks as If it would prove autOmatical-
ly effective. l can even believe that
this crisis will prove of great value
to the farmers and to the South If it
Is handled carefully, because it gives
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 diversiticatiOn Of crops has been
advocated by all a lOrities and ex-
perts for great many years.
The plan Is to secure the coopera-
ton Of the United States Treasury
Department in making available for
the use Of member banks in the new
federal reserve system any part Of
the sum Of $500, ,OOO.O 900. under the
following conditions:
A farmer, or cotton planter, to
have the right to go to q bank on or
after November 1st and arrange to
borrow at the rate OF 10 cents per
pound on one-half Of the cotton
which he raised on his farm, the VAL
uation to be based on middling cot
ton; the loan to be made for a period
OF six months. with privilege Of re-
newal for six months additional; the
cotton to be stored and insured in q
manner meeting with the approval of
the bank; the bank to have the right
to rediscOunt the note in a reserve
bank; and the note given to contain
the stipulation that the farmer maxi
ing the note would next year plant
In cotton only One-half the acreage
which he planted this year, and would
plant The balance in corn, or other
grain or forage, the farmers note to
mature at any time within the second
six months and becom 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 the war in Europe contin-
ued until the first of April next year,
the farmer would agree to plant not
exceeding one-fourth Of his land in
cotton. and the balance in grain, un-
less a general release was given from
the agreement by the Treasury De-
partment, or the directors of the GEN.
trail reserve bank.
The effect Of this agreement would
be the certainty that every bale up
to one-half Of the present crop would
sell at 10 cents per pound or better
because the American mills could spin
that amount; also, that the other
one-half Of this crop, which in any
event would be needed next wear.
would bring a good price. Under the
plan the food supplies Of the world
would be greatly Augmented next year
ana might prevent widespread dis
tress. 1t has never been practica BILE
to get the farmers to agree among
themselves to reduce the acreage. but
this contract which each farmer
would make with his local bank for
the actual consideration of receiving
the loan would bind him; and probab.
ly 80 per cent Of the farmers would
adhere to the stipulation without any
inspection being necessary.
Ihis plan seems possible in the
case OF cotton from the facts CD that
cotton when properly stored does not
oeteriorate, and (2) that the South
controls tho worlds supply.
The details could of course he eloh.
GRATED, but the central ideas are (a)
to eliminate one-half of the present
crop. which is not needed, in such q
way that 1t will not throw a ruinous
burden on the farmer, and (b) TO
Keep the crop OF 1915 down to such
small proportions that tho ono-h,,,