The Hattiesburg news., 1914-08-25
STAPLE PRODUCTS
WILL Be BASIS
FOR CURRENCY
NEW FEDERAL RESERVE BANKS
WILL HELP FINANCE THE
CROP.
WAREHOUSE RECEIPTS MUST
BE PROPERLY SAFEGUARDED
Sentiment Of Conference Favors Pur-
chase Of Ships - American Cotton
Manufacturers Could extend Markets
And Increase Consumption by $780,.
900 Bales.

Washington, Aug. 25.-Representa.
tives of the various branches of the
cotton inquiry, in conference here with
the federal reserve board and other
government officials, were assured by
Secretary of the Treasury McAdoo that
properly Aafeguarded warehouse re-
ceipts for cotton will be made the basis
for currency issued by the new fed
eral reserve banks.
The conference Immediately took up
the question of proper warehouse facil-
tiles and discussed details of financing
the crop. Secretary McAdoo declared
the disposition was to make not only
cotton, but tobacco and all other
staple products, properly secured"
the basis of bank credit.
The conference which represented
cotton growers, merchants, bankers,
and manufacturers from % states,
after morning session with Secretary
McAdoo and the reserve board, called
upon the President. He assured them
of the full cooperation of the govern
ment in their efforts to meet the situa-
tlon confronting the industry as a re-
suit of closing of European markets by
war. The President urged that every
interest do its best to help itself
Not Intended For Those Who Do Not
Need It,
Il am not willing to believe" he said.
that these conferences are intended
to call upon the government to rescue
men who know how to take care of
themselves; but that they are called
for the purpose of common counsel and
for putting at the disposal of men who
know how TO take care of themselves
every legitimate instrumentality of the
government itself.
"The conferences that we have held
in recent weeks have done a vast deal,
first of all to clarity problems, and
second, and perhaps more important,
to show how by cooperation we can
solve the problems. Not all of these
problems are going to be entirely solv-
ed, because the circumstances are of
such extraordinary difficulty, but that
they will come very near to being
solved, for one have no doubt, provid-
ed always We keep cool and think of
these things in the same self-possessed
temper we would exercise if conditions
were not extraordinary. We are not
to be run away with by sudden excite
ment; we are not to be imposed upon
by unusual conditions, and the minute
we sit down to gether l am sure that
we can work things out"
The conference devoted consider
able time to discussing warehouse ia.
cilities. s. T. Morgan. Richmond, Va,
representing the Virginia Caroi;na
Chemical Company, said that following
the secretary's announcement his COM
pany had made all arrangements for
building cotton warehouses throughout
the South from North Carolina to
Texas
Manufacturers Could Expand.
Postmaster-General Burleson urged
the cotton Representatives to disregard
radical plans proposed for dealing with
the situation, such as the valorization
of cotton. Both the postmaster-gen.
eral and the secretary of the treasury
warned against hysteria and panic.
Discussion developed sentiment
favorable to the proposed purchase of
ships by the government for the for
eign trade. 1t was said that with
South American and Asiatic trade
routes opened to the American ships,
the American cotton manufacturers
could extend their cotton cloths to
these markets and increase their con.
sumption of raw cotton by 1900, 900
bales. The general opinion was that
100000 bales of cotton would have to
be carried over as a result of the clos
ing of British, French and German
mills.
Cotton manufacturers promised tt
make every effort to increase theil
consumption and agreed not to force
down prices for raw cotton. Bankers
agreed to make every legitimate effor
and to aid in the financing of the crop
The conference is meeting again today