The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1914-08-27
THE COTTON SITUATION.
$500, 900, 900 Will Be Available in
Thirty Days.


emergency or crop-moving currency
will be available for financing the
Southern cotton crop.
This at any rate was the assurance
given the Southern Cotton Congress
in Washington last week by Senator
Hoke Smith, of Georgia, and it was
the best news the writer heard dur
Ing the whole meeting.
The congress heard many men OF
many minds, not to say hobbies, and
the result of it's deliberations may
be summarized as follows:
1. The congress indorsed the prin-
ciple of a bill introduced by Repre-
sentative Wingo of Arkansas provid-
ing that, where solvent bank pre-
sents notes executed by producers of
cotton accompanied by a proper
warehouse certificate or lien. the
federal reserve board shall issue
emergency currency to such banks
up to Is per cent. of the value of
such cotton. The Wingo bill at pres
ent calls for such loans to be made
to farmers at 4 per cent, but the
best that the farmers may really ex-
pect is to get money at the legal rate
of interest as other businesses pay.
2. Farmers are urged to hold cot
ton for a minimum price of twelve
cents, storing in the seed.
8. A committee was appointed to
prosecute the matter providing am
pie warehouse facilities throughout
the South.
4. The meeting took note of the
writer's open letter to Southern con-
gressmen, printed on this page, call
ing attention to the reported inten-
ton Of the federal reserve board not
to recognize farmers notes as prime
commercial paper. even though Sc
cured by an approved warehouse GER
tificate, unless indorsed by some per-
son of Bradstreet rating or similar
financial standing. A resolution was
unanimously adopted asking that
this be changed.
5. Other resolutions ask that
meetings of cotton growers be held
throughout the South, and that each
State consider calling special ses-
sion of the. legislature to provide a
State warehousing system; and Of
ficers were elected as follows: E. ].
Watson. of South Carolina, presi-
dent; Charles St. Clair, Of Texas,
vice president; Dan G. Hughes, of
Georgia, secretary.
\ The committee on resolutions
brought forward a plan providing
that sufficient national funds should
be advanced to banks and that they
should then be compelled to lend
any farmer 80 per cent. of the value
of one-half of his crop, but that the
farmer should be required to sign a
pledge to plant next year only one
half of his present acreage in cotton.
The writer has no apology to make
for the part he took in defeating this
acreage stipulation. In the first
place, it is impossible to say now
what action as to cotton acreage will
be advisable nine months hence. The
The chances are that the war will
be over; that a great period of pros
perity will ensue, and that every
bale of cotton the South will make
next year>will be needed in the man
ufacturing year running from Sep
tember, 1915, to September, 1916.
In the second place, the plan would
not give our readers relief, because
not one farmer in ten would sign
such an agreement. In the third
place, even if poorer farmers, forced
to accept these terms should sign,
the larger farmers able to get NJ oney
without signing would simply plant
enough more cotton to make up for
the poorer mans advertised curta;l-
ment.
The rest of the story may be
quickly told. The general spirit of
the meeting was optimistic. The
recent currency legislation has al
most made panics impossible. There
is a general conviction that the war
cannot last long, so American mills
will now consume much more cotton
than formerly, and the proposition
to allow foreign ships to register un-
der the American flag will probably
provide transportation for most OF
the lint needed by English mills. But
the chief reason for confidence is
simply faith in the horse sense Of
the everyday Southern cotton grow
er. 1t is believed that he knows
what his crop is worth, and will not
be stampeded into sacrificing it to
horde Of spectators.
fontc ro-