The Birmingham age-herald., 1914-08-25
SERVICES DEEMED
 OF GREA TEST IMPORTANCE
Holland Expresses Views Held By Birmingham Man Regarding the Cotton Sit uati0n In the South.
Ny HOLLAND

New York. August 24-(Special.1-tt is spoken of here as highly fortunate that the federal reserve board should at this time and at the moment of it's organiza- ton contain man of the peculiar and especially valuable experience which characterizes Mir. Harding As president of one of the largest banks of the south and having shared in many of the inhu- ences which arc reflected in the great growth of Birmingham and furthermore. being thoroughly familiar witp the cotton industry In all it's phases, MT Harding's experience will be of the greatest value at this time. He spent some days in New
 York city recently. coming here within few hours after the announcement that
 war had begun on the continent of Eu-
 rope. Mir Harding was already known
 personally to some of the leading finan-
 cial authorities of New York and most
 fsvorably known to all of them. There-
 fore what he said both for publication
 and in private conversation about the cot
 ton situation in the south at the time was
 regarded as very important. As 8 mem
 Der of the federal reserve board, he will
 be in condition to give good counsel when
 questions come before the board which re-
 late to banking facilities of the south and
 the part the banks of the south have
 borne in financing the needs of the cotton
 growers.
 Mir. Harding is persuaded-and he per
 suaded men of the financial districts
 whom he met-that it is of the utmost inl-
 portance that the cotton growers of the
 south be protected. He went so far as to
 recommend that as much of the addi-
 tional currency for circulation which may
 be issued and may be needed for the pro-
 tection of the cotton industry of the south
 be applied for that purpose by the banks.
 MT. Harding intimated to his friends in
 this cit ythat some features of the situa-
 tion are properly in control of the banks
 of the south For the most part, the cot
 ton growers, if his information were cor- rect, have received abundant advances from the banks. They were able to make loans at the time of planting. They are not likely therefore to be in any immedi- ate distress unless the banks should in- sist upon speedy and full payment of the loans. Mir. Harding's View
 MT. Harding's view is that the banks, which are abundantly protected by the cotton itself, should not undertake to force a market with intent thereby to se- cure payment for their loans. They should instead deal out so to speak, cot ton as it is needed from time to time, having in view the maintenance of req sonable pride for it. They can in that way gradually liquidate their loans.
 In MT. Hardings view, something of this kind will have to be done for the protection of the farmers who have raised grain this summer. He has no doubt that with the facilities which would l be provided as soon as the federal reserve | system is in opera tion, probably not later than six weeks hence, it will be compara- l lively easy to protect the farmers and the banks as well which have made advances on the grain. NHz A few days ago at luncheon hour secre-
 tary McAdoo had private and wholly in- formal conversation with two or three
 friends in this city. They were impressed I by the earnestness and by the evidences l of desire on the part of the Secretary | to utilize the resources of the federal | treasury as far as may reasonably be l done for the protection of American bus- ness and commercial interests. and the American money market. At the time of this conversation it was not know that the Bank of England contemplated the establishment of a fiscal agency, so to speak. at Ottawa where American gold could be received and utilized by the Bank of England But from some things which the Secretary said informally the | inference was strong that had he known at that time that the Bank of England