The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-10-14
DISCUSS COTTON SITUATION,
M'ADOO CRITICISES HENRY PLAN
FOR DIRECT FEDERAL AID.
Says Scheme Is Not Practical and Oh.
jccts to Features of it-Such Action
Would bc Undcm0,ratic-Takc up
st. Louis Plan.


to Representative Henry of Texas,
made public tonight by Secretary Nc
Adoo. The letter Is in reply to recent
statements to the house by Mr.. Henry.
Mr.. McAdoO announces that the
proposal to sell $3.50. 100000 Of Pan
anna camel bonds to bolster the cot
ton crop is not practicable, and gen
orally objects to all the features of
the Henry plan. He calls attention to
the fact that those who dealt in to-
bacco, naval stores. copper, silver and
other commodities have not sought
government aid.
IF we disregard every suffering in
terest except cotton" he said, land
make it the sole beneficiary of gov
ernmental favor, what becomes of the
Democratic principle of equal rights
for all, special privileges to none"
IF VIC enter upon the course you
suggest we must help every distressed
industry impartially. To do that
would necessitate the issue of many
more than $4OO,OOO.OOO in bonds and
greenbacks and dangerously involve
the credit of the government. 1t
would be hopeless undertaking, in
defiance Of every sound principle Of
disaster at the end"
Representative Henry introduced in
the house today compromise loan
proposal presented in bill framed
last night by a conference of South
ern members of congress. 1t would
reduce the proposed loan to $3.50. .0OO,-
600. Mr. Henry also sent letter to
the house banking committee asking
a prompt hearing on the bill.
While Mr.. McAdoo was writing his
letter the committee of st. Louis job
bers and bankers, headed by Festus
j. Wade, was in conference with a
committee Of the federal reserve
board over the proposed $15O,0OO, 900
cotton loan fund to take care Of the
surplus cotton crop.
No decision was reached and the
conference will be resumed tomor-
row.
Gov. Hamlin and Messrs. Warburg
and Harding, the board committee,
will discuss the proposal tomorrow
before they meet the bankers and
later the full reserve board may take
it up.
The discussion today dealt with de-
tails Of the proposed loan fund.
Board members were interested to
know what profit the hackers of the
pool expect to make and what it's
benefits will be to the cotton pro,
ducer.
Mr.. McAdOOs letter to Mr.. Henry
went exhaustively into the aid to be
extended by the treasury to the ma
tional banks in cotton States, show
ing that it had issued to them since
the war began $6S,OOO,OOO in cur
rency; that it's crop funds amount
to $11,337,000; that it's regular de-
posits in the South total $16,O65, 900
and that there is available for South
crn banks In compliance with law
100000 more in additional ma :
tonal bank currency.
What is really wanted" said the
letter. lis restored market for cot
ton" The value Of cotton has been
injured this year by the European
war. This injury can not be relieved
nor the market restored by legsla-
tion, any more than the injury to
corn which was caused by the drought
last year Ia the great corn States of
the West could have been repaired by
legislation.
In his letter Mr.. McAdoo denied
that he had the right to deposit treas
iry funds. Of which Mr. Henry had
said there were Several hundred mill
lions." exclusively in the South. The
statutes require, he said. that such
funds be distributed as far as practi-
able "cquitably between the different
states and sections"
IF the gOvernmei. had several
hundred million dollars in the treas
ury,' Mr.. McAdoo said, congress
would not be engaged now in passing
a new tax bill to repair the loss I'm
revenue occasioned by the European
war;"
In conclusion the letter saws:
The powers and resources of the
Southern States should be employed
Tor the benefit Of their people and
the national government should not
DC expected to do things which are
bcyond its power. | am glad to state
that the federal reserve banks
throughout the country are now prac-
IL Il