Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-10-10
Secretary of Treasury Tells
Texas Statesman That Gov
ernment Cannot Undertake
to Finance the Product,
MILLIONS AVAILABLE
FOR SOUTHERN BANKS
Entire Proposition Declared to
Be PrepoSterouS and Would
Result in Disaster to Entire
Nation,


! Washington, Oct. a.--The plan for
direct federal aid to cotton growers to
the extent Of siO0,O00.OO0 was the
subject of sharp criticism in letter 10
Representative Henry of Texas. made
public tonight by Secretary McAdoo.
The letter is in reply to recent state
ments TO the house by Mr.. Henry
Mr.. McAdoo announces that the
proposal to sell s250,OO0, O0O OF Pam
ANA canal bonds 20 bolster the cot
ton crop Is not practicable and he
took exceptions generally to all the
features of the Henry scheme. Vie
calls attention to the fact that those
copper. silver and other commodities
have sought government aid
III we disregard every suffering In
terest except cotton he said. "and
make 1t the sole beneficiary of gov
ernmental favor. what becomes OF the
democratic principle of equal rights
for all and special privileges to noner
III we enter upon the course you
suggest you must help every distressed
industry impartially To do that
would nccessitate the issue of many
more than 500. 600, 900 In bonds and
greenbacks, and dangerously involve
the credit of the government II
would be a hopeless undertaking, In
defiance of every sound principle of
finance and economics with certain
disaster at the end.
Representative Henry introduced the
house today a compromise loan prop
osition presented in a bill framed last
night by a conference Of southern
members of congress. 1t would re-
duco the proposed loan to $25O,0OO,-
900.
While Mr.. McAdoo was writing ms
letter, the committee of 81. Louis job
bers and bankers headed By Fcstus
/ J. Wade, was in conference with a
committee of the federal reserve
board over the proposed sl5Q.000,OO0
cotton loan fund TO take care OF the
surplus cotton crop. No decision was
reached and the conference will be
resumed tomorrow.
Governor Hamlin ana Messrs. War
burg and Harding, the board commit
tee. will discuss the proposal before
they meet the bankers. and later the
full reserve board may take it up.
The discussion today dealt with
details Of the proposed loan fund.
Board members were interested to
know what profit the hackers of the
pool expect to make and what its
benefits will he TO the cotton pro-
Queer
Mr.. McAdoo's letter 60 MI Henry
went exhaustively into the aid so far
extended by the treasury to national
banks in cotton states, showing that It
has issued to them since the war be-
gan Sos, 600, 600 in currency; that its
crop funds there amount TO s11, 49,
600, that its regular deposits in the
south total s16,065,0 900 and that there
Is available for southern banks in
compliance with law s15f,000,O0I
more in additional national bank eur
rcncy.
What is really wanted the letter
said, "is d restored market for cotton.
The value of cotton has been injured
this year by the European war This
injury cannot be retrieved nor the
market restored by legislation, any
more than the injury to corn which
was caused by the drought last year
in the great corn states Of the west
could have been repaired by legisla-
ton