The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-10-20

DINfSiojl VI III
Farmers Union has given out for
publication "a letter which he has
written to Representative Henry. of
Iexas, concerning the matter of the
needs of legislation on the cotton
situation, and making suggestions as
TO this, the letter reading as follows:
president AIeXander'S Letter.
Matthews, N. c., Oct. IA, 1914.
Hon. r. L. Henry, Washington, d. G.
Dear Sir:-Secretary McAdoo has
positively refused to sanction any
g plan for the valorization of cotton by
the government. He has declined to
suggest even q loan valOrization to
guide the banks in the distribution of
the emergency currency which he is,
issuing to be loaned on cotton.
The Secretary has also declared
himself in opposition to legislation
that would extend the benefits of
emergency currency to State banks.
lie argues that the placing of this
currency in the National banks will
make it available to the State banks
and thus reach the farmers.
The President has ildorsed the
views of the Secretary and approved
his rulings regarding the issuance of
emergency currency. He has per-
sistently refused to countenance any
movement tiidt lie UlQ not consider
absolutely safe and sound"
The great majority of the members
or Congress have AXE their 'cue"
from the President and are opposed
to any scheme of valorizatiOn, and
TINS applies to Southern as well as
Northern and Western members.
The Henry Bill" which you and a
rev others nave strongly championed,
contains three distinct propositions,
to-wit: fixing a loan valorization on
cotton, the loaning Of money direct
from the government to the people on
receipts for farm products.
n the fixing by the government of a
low rate Of interest to the people.
1t is the general opinion in Wash
ington and of the press Of the coun-
try, that the first Of these propositions,
that or valorizatiOn, has no chance
Whatever of being enacted into law
through n bill. And it is this fea-
ture of the Henry bilI' that is openly
opposed by Congress.
Now there is a reasonable doubt Of
the wisdom of the un-
dertaking to valorize any product
which it does not in some way con-
trol. III the government would take
over the expectation Of all cotton, pay
a fixed price to the producer, sell to
ne nome manufacturer at cost and
to the foreign manufacturer at a
pront or, say two cents per pound,
turning the net profits into the treas
ury; this course would eliminate I'M
certainty, speculation and f%luctuation
In price and protect both farmer and
spinner.
This would be a sound economic
policy in the handling of cotton be
cause we have a monopoly in pro-
duclng 80 per cent Of the worlds sup
ply and because h world can not be
clothed without our cotton, and be-
cause cotton does not deteriOrate by
age but a be carried indefinitely il
kept dry. But l am not writing for the
purpose of arguing that the govern
ment should pursue this course. ]
want to be more practical and make
some suggestions to eliminate the oh.
Jectionable valOriZation feature and
provide a meaSure which will "helr
some and which no Congressman can
oppose without %aligning himself with
the Money Powers against the
interest of n masses Of the people
Amend your bill SO that it will pro.
vide for the government to issue five
hundred million dollars of U. S. Treas.
ury notes Cor as much thereof as may
be needed) of convenient denOmina.
tons, to be oaned direct to farmers
on warehouse receipts for cotton OIL
obacc properly warehOused and in.
sured, at three pei cent interest. TIL,
aHiount OF loan on any product to b.
that for which it would sell on tn.
open market; in other words the mar
ket price per pound.
we would thus surrender the valor
1zation idea but we would establish
the more important and f~ar-reachin
propositions that the government car
and hould q money direct { O tn,
people at a low rate Of interest
h kind OF a measure ought I,
appeal to all Congressman from ever,
section Of our country. 1t would b.
the most important step In a gener