Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-13
Committee Of Congressman
Backing Movement for Bene-
fit of Small Producer.
URGE ISSUE OF MILLIONS
IN UNITED STATES NOTES
Proposition Is for the Federal Gov.
eminent to Take Over the
Available Crop.

| A committee of twenty-one repre-
sentatives in Congress from the cot
ton states and from the National
Farmers Union will be created here
tomorrow to launch a movement for
advancing three to four hundred mil
lions of dollars In United States notes
on the surplus cotton crop OF six or
seven millions of bales. About thirty
members Of Congress and several
members of farmers organizations
have authorized Representative Henry
, of Texas to select the committee.
.rhis committee" said Mr.. Henry
last night, will present the situa-
ton to the Secretary Of the Treasury
the federal reserve board ana 70
President Wilson. The fight Is to take
over the surplus cotton crop so that
it may be held by the federal gov
ernment, through these loans. till wa
conditions in Europe pass and the marKe.
MANY Of the people Of the south from
| absolute ruin"
Unable to Walton Market.
The small farmer, who produces al
most all the cotton crop, Is not en-
abIed, by federal relief measures ADOPT
ed, to hold his cotton for better mar
ket He will continue, as in the past
to sell his cotton in the earliest mar
ket for cash to meet his constantly ma
turing and pressing obligations.
But the cotton factor, who distrin,
utes the cotton, wealthy nhuehual
andn with adequate credit. will be the
prime and almost exclusive direct pen,
eflciary Of emergency currency, ano
will find it available for purchases OF
cotton, by discounting warehouse re-
/ ceipts. as fast as cotton is delivered ny
! the producer from whom he has bought
II, without need to handle dollar OF
| his own or other money. And ne can
i hold his cotton in warehouse indennlte-
i ly, until the speculation conducted on
| This Is the opinion Of Representative
Otis r. Wingo of Arkansas. 1t IA the
=. opinion Of other southern consressmen
, and the financial situation south o Ma
| son and Dixon line. 1t Is also more or
, less recognized as fact by me npers OF
the federal reserve bard and others VINO
have taken council with all the interests
! But lust how to meet this situation is a
problem not yet soluble with the mach, ma
! ery at the command of the admin1st a.
| ton.
Only a General Benefit.
REPRESENTATIVE Wingo does not doubt
that the producer will get better price
| because of a plenitude Of money. nor
! that his situation will be improved by re-
! lief measures taken. He he Is Of opin-
! ON that only the general and not the d.
rect beneft of a situation relieved Is the
+, producers share.
| The vast bulk of the cotton crop Is
| produced by the tenant farmer, as
| everybody knows: and Representatis .
Wingo points out that this producer. al
| ways broke, is often without property
rights in the machinery ne needs 70
produce his crop. has small relations
with bankers and for bapk loans to aid
, him in holding cotton. Owing debts to
| the local merchant. payable n Septem-
Der, October, November and so on. he
nds it bs ss, it 1. sen market
| Referring to the warehousing OF cot
ton, 1t is pointed out that there are T
always warehouses u.s.. ~ ana h,. =, tne mas m dnnI
| late warehouse receipt on any past or
i present plan So, unable to hold his cot
/, ton for a better market. he brings 1t to
town He drives to- the enteo onttna arS cnr-
munities From headquarters along the
street in which Is the market come the
! cotton buyers. representatives Of Tar.
of cotton factors.
Employ Their Own Methods.
They sample the cotton according to
their own method of Standardization.
/ and then BID upon 1t. The highest bid
holds, and the producer usually re-
CARDS his cottons as sold. He drives
to the warehouse, delivers the product
brings back the receipt to the local
| bank, where 1t Is turned into cash on
the basis of the transactions. and the
cotton producer has all he can expect
The future price Of his cotton no more
| Is his concern.
The cotton is shipped by the buyer
who comes to the bank with the rail-
road way bills, and checks them of
against the warehouse receipts. 1t il
the cotton factor. through his repre-
sentative, the buyer. who then gets the
bank to discount the warehouse re-
eeipts: And the factor is usually in.
in plenty Of places over the country
to obtain the money he needs.
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