The commonwealth. (Greenwood, Miss.) 1896-1923, 1914-09-18
HON. W. S. BARRY OFFERS VERY
FEASIBLE PLAN.

Our distinguished fellow-towrsman,
Hon. W. s. Barry. attended the cot
ton conference held recently in Wash
ington with Secretary McAdoG and the
Federal Reserve Bank Board having
received an Invitation by wire from
MIR. McAd0o. There ~ere sundry
plans suggested by the large number
OF representative men present, but the
following sensible plan, written and
submitted to the Board by Mr. Barry for
their consideration would be decidedly
the best solution of the problem which
confronis Us that we have yet seen adj
vanced:
"As | understand it our object Is to
devise some feasible plan to assist in
financing the present cotton crop so rs
to relieve the producer from the neces-
sity Of forcing his crop upon the mar.
ket at a price much less than its real
value and to enable him to tide over
the abnormal condition Of affairs until
he can secure a fair market value for
the product Of his labor. The question
Is how to accomplish this end?
II further understand that the Gov
eminent stands ready and willing to
assist in some fair, Just and cquitablr
method II same can be devised. The
question ", what should We do?
" suggest that the government fur
nish financial assistance to the banks,
including state banks, il the law will
permit; that advances be made on cot
ton according to class or grade SAY
for illustration that $40. 90 per bale be
loaned on ordinary, SIS on low middIing,
$50 on strict low midallng, S3b on mid
ding and $40 on strict middling or bet
ter. No cosideration should be paid
AZ to staples, for the simple fact that
staples have no fixed value. Only a
limited amount Is needed, and the price
entirely depends upon the v Q or i'm.
der production Of same.
'sThe banks might be required to
furnish warehouse receipts and should
guarantee the safe housing of said cot
ton. the grade and the weights Of same.
The banks should keep cotton insured
and further guarantee that the money
obtained from the Government win be
advan sed on cotton only, and for no
other purpose. They should further
guarantee that the party to whom it is
loaned produced said cotton or supplied
or furnished the money to have same
produced. The banks should be limited
to q maximum rate Of interest TO be
charged. The banks should be required
to extend the credit for a certain per-
iod of time or so much thereof MS the
borrower may desire. Same should be
made in order that application for
same are filed, and no application
should be filed until the cotton is deliv-
cred tn the warehouse, 1t would, in
my opinion. be impractical to have a
Government agent to make the loans
TO the individual farmers and class the
cotton. In the first place too many
agents would be required, too much
time would be consumed and the relief
would come too late TO be beneficial.
The proposition above made would
In reality reach the little farmer sooner
and more certainly. Seven.y-hve per
cent Of the cotton crop already is spent
before it is marketed. so you will see
that seventy.fiye per cent of the value
of the cotton crop is owed and the
bankers or the merchants who furnish
ed the monsy or good to produce same
and IL the bankers could secure the
money on the cotton they will in real
itv be borrowing the money to pay
themselves, but it will enable them to
hold the cotton as trustee for the pro-
Queer and for his benefit. so that he
may secure advantage of any advance
in price"