Pocahontas star herald., 1914-12-04
OPTIMISM N S9yTH
Heavy Financial Depression
NGraduaIIy Being Relieved.
COTTON GROWERS GET RONEY
National Banks Are Reaching ou'
Helping Hand and Extending ~
nanolal Aid 20 Farmers-loans
on Warehouse Receipts,

The hearts OF the people OF the
south have been gladdened and a ieel'
inr OF optimism Is permeating the at
mosphere. The heavy financial do
preston which grlppod the cotton
states during the early part OF Sep
tember Is gradually being relieved ana
money Is becoming freer. The bank
ing institutions OF the southern states
are coming 10 the aid OF the cotton
growers with cash, advancing loans on
cotton warehouse receipts.
Although It will take some time for
the effect OF the money being put into
circulation 10 be felt to any great eX-
tent. the assurance that something Is
being done to relieve the situation
has lent courage TO the business man
as we'll as 10 the farmer. Because OF
the fact that the cotton must be
hauled TO town and properly ware.
housed before loans will be made on
the staple the work OF advancing loans
has been necessarily slow.
According TO dispatches from yari-
Gus portions OF the cotton belt there
have been thousands Of bales retired
from the open market and money ad'
vnnced TO the growers at the rate OF
six cents pound. or approximately
$50 a bale. This money is represented
principally by the Aldrich-Vreeland
currency furnished the national banks
By the United States treasury depart
meut. Under the provisions C. this
currency measure the cotton must be
properly warehoused before loans can
BE- made upon H.
Absence Of Cash Felt.
Il has been the absence OF cash that
has most greatly affected the South.
There never has been a time since the
European war began when there was
not a demand for the wares OF the
merchant. but no one had money to
pay for them. This condition was
most seriously felt in the cities. In
the country towns the merchants raj
lied 10 the aid OF the farmers and sup
piled their Immediate wants by accept
ing cotton in payment Of their Tqr.
chases. Old accounts we're also set.
tied with cotton. But soon the average
country merchant has more cotton on
hand than he knew what to do with.
He also found II difficult TO pur-
chase from the wholesa : houses and
the iobbers as they were not prepared
10 take cotton from the merchant
The prospects sre now that this
condition OF affairs will soon undergo
change. Instead Of trading his cot
ton to the merchant for the necessi-
ties OF life the farmer is placing his
bales In the nearest warehouse. The
receipts he receives from the ware
house he takes TO the bank he has
been in the habit OF carrying on his
financial transactions with, using them
as a collateral for borrowing money.
In this manner real money Is being
put into circulation.
In Georgia and a portion OF Tennes-
see this condition OF affairs is especial
ly true. The national banks are reach
ing out a helping hand and extending
aid TO the distressed f2-mer Follow
ing a recent meeting OF the currclcy
association Of Georgia an announce
men, was made that the national
banks OF this state and a part OF Ten.
nessee are making loans on cotton
warehouse receipts. These loans are
being made ON the basis OF six cents a
pound.
Cotton Must Be Stored.
The only provision that has been
stipulated by these banks is that the
warehouse in which the cotton is
stored must be acceptable TO the bank.
A great number Of these loans are
being made through the agency banks
Of the national institutions which gives
Il a much wider scope OF operation.
While II is true that this work has
been going on for some weeks, the
fact did not become generally known
until the announcement made recently
BY the currency association.
81 has been estimated that the ma.
tional banks have loaned something
like $5OOOO,OO0 on cotton within the
past few weeks. There is still large
amount OF available currency on hand
In the banks that can be loaned on
cotton. According to the fig 3 re-
Gently issued by the United Sta. as de-
partment OF agriculture this years
crop is estimated at approximately
$3.50, ,0OO, 900. figuring on basis Of ten
cents a pound.
An Atlanta state bank was one Of
the first to offer any real financial aid
10 the cotton farmers OF the South.
The activities OF this ban,,, however.
was confined to its customers in
Georgia alone. This bank is leaning
money on cotton at six cents a pound
and storing the cotton in its own ware.
houses In Atlanta The bank officials
say they will loan as much as 100000.
600 to the cotton growers OF &c .rgia
who are members of this bank
According to the offer OF this bank
II will lend money to the grower at
six cents a pound. The current rates
of interest will be charged on the
notes which will mature July /, 1915.