The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-09-02
Can CARRY COTTON
IMPORTANT CONFERENCE Held
ON FINANCING CROPS.
NJ 'ADOO IS Confident

m'AD0O IS Confident
Cool Handling and Prompt Measures
Will Save the Situation-Must
Care for 1000, 900 Bales of This
Years Crop-President and Secre-
tary Are Working.
Secretary McAdoo, members of the
federal reserve board and members
of congress Monday discussed with
several hundred representatives OF
the cotton industry ways and means
to meet the situation confronting the
trade as a result Of the war in Eu-
rope. Every state in any way con-
nected with production of cotton or
cotton goods vas represented at the
conference.
The conference Immediately took
up the question Of proper warehouse
facilities and discussed the details of
financing the crop. Secretary Nc
Adoo told the delegation that the
disposition was to make not only cot
ton but tobacco and all other stable
products, properly secured" the
basis of bank credit.
II have been distressed" said Sec
retary McAdoo, "to find that there is
a growing feeling OF hysteria over
the situation regarding cotton. 1
have been receiving letters and tele-
grams which indicate feeling that
unless something is done Immediate
ly, the bottom will drop out Of credit
and cotton will be total ruin. The
best answer to all of these panic
stricken kilograms is: This is no
time for nervous systems. Many OF
the calamities suggested to me are
utterly impracticable.'
Secretary McAdoo estimated that
1000, 900 bales of the present crop
would be unable to find a market.
He said if the ordinary course of
marketing can be preserved until the
surplus appears, its disposition ought
to be an easy matter. He warned
the banker that cotton must not be
forced to sale at loss, and warn
ed the manufacturer that he must
not refuse to buy cotton, waiting for
panic price. I'VE must put aside
selfish motive Mr.. McAdoo said.
While the German consumption OF
8, 100000 bales and the French con-
sumption Of 100000 bales will be
cut off, the Secretary continued, it
is expected the British demand will
be about normal. Proposed legisla-
ton for government purchase and
operation of ships, he said, would
open up the South American output
of cotton goods, thus creating an ad'
tditional demand for raw cotton.
The secretary said the fnancla
situation was we'll in hand, with the
government in position to mate
rally aid the banks. He estimated
that with the federal reserve system
in operation the banks of the South
easily could secure national bank
currency, to finance 100000 bales
of cotton at $40 a bale.
81 am satisfied" he said, "tha,
with proper warehouse facilities, we
can make warehouse receipts for cot
ton the basis for issue Of national
bank circulation"
Senator James asked if tobacco
warehouse receipts could be similar
ly used. The secretary said the dis
position was to include "all staple
products properly secured"
H. S. Mobley of Arkansas proposed
at the conference that some arrange
ment be made to distribute currency
through State banks.
eve will hope" he said, "that any
funds for the relief of this situation
will be distributed differently than
the crop moving fund usually is. We
hope it will not be like the situation
in one State, which last year received
100000 in crop moving money and
then used it in land speculation.
st think you are mistaken about
that" interrupted Secretary McAdoo'
"but I would like to have any proof
that such a thing occurred"
I'm not mistaken" replied Mob
ley, "and the president of the Arkan-
sas State Bankers association can
tell you that out of s759,o00 placed
in that state for crop moving pur-
poses, very little of it, if any, ever
was used to benefit the farmers" "
Secretary McAdoo said he would in
vestigate.
The conference devoted consider
able time to discussing warehouse
facilities. S. T. Morgan of Rich
mond, Va, representing the virginia
Carolina Chemical company, said that
following the secretary's announce
ment his company had made all ar
rangements for building cotton ware
houses throughout the South from
North Carolina to Texas. He said
that warehouses could be built for
at from $500 to $1,000 each, to store
1000 to 5000 bales.
Postmaster General B'urleson urg-
ed the cotton representatives to dis
regard the many radical plans pro-
posed for dealing with the situation
such as the valorization of cotton
and to concentrate their efforts to-
ward plans which would be practical
ly under the law. He pointed out the
limitations of the banking laws and
urged that any plan be mdae to con-
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