The Birmingham age-herald., 1914-08-13
Federal Aid Necessary

bonded warehouses, or do so through banks at a rate of interest not to ex- ceed per cent"
 Federal Aid Necessary
 Federal aid is absolutely necessary" says Harvie Jordan. president of the Southern Cotton association. and unless this be speedily forthcoming our cotton growers must suffer. Continuing, MT. Jordan says:
 There is no demand for cotton at this time in any of our markets, while all of the exchanges are closed. If the movement of the crop is restricted by limited demand, very low prices will en- sue unless arrangements with the federal government are promptly perfected to finance a large portion of the crop in storage until European peace is declared Cotton must be held off a stagnant mar ket. Federal aid to the extent of sev~ eral hundred million dollars is imperative Such an emergency found could be han dled through the banks operating in the cotton belt and loaned against receipts is- sued for cotton stored and insured In bonded warehouses at d fixed price per pound basis middling. This would pro- vide a stable market for such cotton as is required by mills Tn unaffected con suming centers, and values for the staple
 
 the south would go forward unhampered.
 United effort on the part of all the people is imperativ at this time. Sys- tematic cooperation was never more es- sental. As the result of telegraphic re- quests from all cotton states, l have is sued call for a general cotton confer l ence to be held at New Orleans August | 27-2s, and large attendance is earnestly requested. The cotton situation. while grave, can be handled with safety to the growers of the south if prompt and sys- tematic plans for financing the crop tenn porarily are adopted and put into execu- tion throughout the 800 cotton growing l counties. Federal aid is absolutely neces- sary. When peace is declared normal conditions will prvail and profitable values be mantained.'
 A Time for Patriotism E. J. Watson, president of the Southern I Cotton congress, and one of the leaders | in the fight for stable market, is em- phatic in the belief that immediate gov ] ernment aid is necessary if immense l losses are to be avoided. Colonel Watson ! says:
 | "Nothing short of federal action in a most business-like manner and reaching
 the uttermost recession of the cotton belt | can relieve the situation that confronts
 us When cotton is trampled to the earth l the south and every man and woman in l 1t falls likewise. and the financial sound
 ness of the nation itself will be shaken. | Cotton is about to move to the markets:
 there is no market. Heretofore we have
 been able in crises that have faced us l to resort to temporary expedients with
 out the aid of the national government
 and save the day That cannot be done. l No necessity for immediate action is inn perative unless 1t be taken and taken at | once, and unless arrangements are made to finance at least 6000,000 bales of dis
 tressed cotton, damage will be done in l the next six weeks that the south may l not recover from in years.
 l "Men tell us that the situation is easy | to handle, that all we have to do is tc | hold cotton We. are in the anomalous position of having to hold cotton and
 at the same time not being able to hold it. Unless some means are given the small growers of cotton throughout the south who must soon be called on to pay bills for fertilizers and living expenses during the year, the small farmer is ruined and he Is ruined in the next few Il weeks. The small. farmer is in the vast majority. which smeans that disaster would be all the greater
 "1 trust that every man in the south
 who can possibly do so will avail himself of the cheap rates on at this season and
 go to this gathering of representative men of the south whether he is regularly ap- pointed delegate or not. There are scores of other problems connected with cottor that ought to be threshed out by the Southern Cotton congress while this ex. Itraordinary session is in progress in tho nations capital. and every man in tho
 south who can ought to be there."
 Nathan Adams, cashier American Ex T change National bank of Dallas. Tex. II says:
 Southern bankers should organize cur
 rency associations under the Aldr,ch vreeland act. and by extending the pape of farmers use every effort consisten with sound banking methods to hold tn, cotton crop off the market until sat isfactory price can be realized. This cal be safely done, and to attempt to sel any cotton at the present time would in my opinion. be suicidal policy fo the entire south. The government ha shown its inclination to assist, and believe that there is intelligence and pa triotism sufficient in this country to hel the south in its hour of need"
 Summarizing the situation, and urgin government aid, in passing through thi
 critical period, the Progressive Farme | says:
 Plans for remedying the cotton situa | tion seem to be getting under way, 1 farmers will only meet write, and ac l. as they should. It all depends on them We do not now believe. in any case tha
 cotton prices arc going to be disa strousl low as some Tear. But what concerns u is that with only a 13.OOO, ,000-bale cro prices not only ough< not to be low, bu they ought to be high and the danger i that farmers may take and 10-cent price this fall-and that speculators and buyer will then sell the same cotton for 1a f 16 cents after Christmas
 "The one thing needed to avoid thi condition is to arouse our farmers an our congressman. Let every Progressiv Farmer reader who makes even bal of cotton write to his congressman an
 say: T relieve the governmennt shoul help finance the cotton crop in the presen