The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1914-10-10
No FEDERAL AID
FOR COTTON CROP
SECRETARY McADOO CRlTICISES
THE PLAN TO USE $4oo, ooo, 900
THIS WAY.
Government Cannot Neglect Other
Suffering Industries to Aid the Cot
ton Growers.

Washington, Oct 9.-The plan for
direct federal aid to cotton growers
to the extent of $500 100000 was the
subject of sharp criticism in letter
to Representative Henry of Texas,
made public tonight by Secretary Nc
| Adoo. The letter is in reply to recent
statements to the house by Mr..
Henry.
Mr. tMcAdo0 announces that the pro-
posal to sell $25000O, 900 Of Panama
canal bonds to bolster the cotton
crop is not practicable and he gen
orally objects to all the features Of
the Henry plan. He calls attention
to the fact that those who deal in
tobacco naval stores, copper, silver
and other commodities have sought
government aid.
IF We disregard every suffering in
tercSt except cotton" he said, and
make it the sole beneficiary OF gov
ernmental favor what becomes of the
democratic principle of equal rights
for all, special privileges to none
IF we enter upon the course you
suggest we must help every dis
tressed industry impartially. To do
that would necessitate the issue OF
many more than $500 900 600 in bonds
and greenbaclls and dangerously in
yOlye the credit of the government.
1t would be a hopeless undertaking in
defiance of every sound principle of
finance and economies. with certain
disaster at the end
Representative Henry introduced in
the house today a compromise loan
proposal presented in bill framed
last night by a conference of south.
ern members Of congress. 1t would
reduce the proposed loan to $250,000,
600. W allie Mr. McAdoo was writing
his letter the committee of St Louis
iC5bers and bankers headed by FEES.
tus j. Wade was in conference with
a committee Of the federal reserve
reserve. board over the proposed
Sl50000 600 cotton loan fund to take
care Of the surplus cotton crop No
decision was reached and the confer
enCe will be resumed tomorrow Gov.
ernor Hamin and Messrs. Warburs
and Harding, the board committee
will discuss the proposal tomorrow
before they meet the bankers and
later the full reserve board may
take it up.
The discussion today dealt with de-
tails of the proposed loan funds.
Board members were interested to
know what profit the hackers of the
pool expect to make and what its
benefits will be to the cotton pro
Queer.
Mr.. McAdoo's letter to Mr.. Henry
went eXhaustiyely into the aid so iar
extended by the treasury to nauOna'
banks in the cotton states, showing
that it has issued to them since tho
war began 6S,O00,000 in currency;
that its crop funds there amount TO
$11 1897 ,000 that its regular deposits
in the south total $16.065,000, and
there is available for southern banks
.$5t 100000 more in additional national
bank currency.
What is really wanted said the
letter, is a restored market for cot
ton. The value of cotton has been in
iured this year by the European war,
/ his 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 leg
islation."
In his letter, Mr.. McAdoo denied
that he had the right to deposit treas
urv funds, OF which Mr.. Henry had
said there were Several hundred
millions exclusively in the south.
In conclusion tie letter says
The powers and resources of the
southern states should he employed
for the benefit for their people and
the national government should not
be expected to do things which are
beyO nd its power ! am glad to state
that the federal reserve banks
throughout the country are now prac-
tically organized The resources o.
these banks will he available in the
very near future for the further relies
of the financial situation and for the