Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1914-12-04
National Banks Are Reaching ON
Helping Hand and Extending p
nancIaI Aid to Farmers-Loans
on Warehouse Receipts.

L W 4 Viva N~~ 1
cotton warehouse receipts.
Although 1t will take some time for
the effect of the money being put into
circulation to be felt to any great ex-
tent. the assurance that something is
being done to relieve the situation
has lent courage to the business man
as we'll as to the farmer. Because OF
the fact that the cotton must be
hauled to town and properly ware
housed before loans will be made on
the staple the work OF advancing loans
has been necessarily slow.
According to dispatches from vari-
GUS portions of the cotton belt there
have been thousands Of bales retired
from the open market and money al
yanced to the growers at the rate OF
six cents a pound, or approximately
$50 a bale. This money is represented
principally by the Aldrich-vreeland
currency furnished the national banks
by the United States treasury depart
nent. Under the provisions OF this
currency measure the cotton must De
properly warehoused before loans can
DO made upon 1t.
Absence Of Cash Felt.
II has been the absence Of cash that
has most greatly affected the South.
There never has been a time since The
European war began when there was
not a demand for the wares OF the
merchant, but no one had money 10
nav for them. This condition was
most seriously felt In the cities. In
the country towns the merchants raj
lied to the aid Of the farmers and sup
plied their immediate wants by accept
ing cotton In payment OF their pur-
chases. Old accounts were also set
tied with cotton. But soon the average
country merchant had more cotton on
hand than he knew what to do with.
He also found It difficult to pur-
chase from the Wholesale houses M
the jobbers as they were not prepared
70 take cotton from the merchant.
The prospects are now that this
condition of affairs will soon undergo
a change. Instead Of trading his cot
ton to the merchant for the necessi-
ties of life the farmer IL placing MS
bales In the nearest warehouse. me
receipts he receives from the ware
house he takes to the bank ne mas
been in the habit of carrying on Ms
financial transactions with, using then
as a collateral for borrowing money
In this manner real money 10 being
put into circulation.
In Georgia and a portion Of Tennes
see this condition Of affairs Is especiai
!, " true. The national banks are reach
!, ing out a helping hand and extending
!, aid to the distressed farmer. FOLLOW
|, ing a recent meeting Of the currenc!
association of Georgia an announce
ment was made that the nstiona
: banks of this state and a part OF Tel
nessee are making loans on cotto'
warehouse receipts, These loans ar
= being made on the basis Of six cents
} pound.
Cotton Must BE stored.
The only provision that q pee
stipulated by these banks is that tn
8 warehouse in which the cotton
stored must be acceptable to the BAN
a. A great number Of these loans al
being made through the agency bank
l. of the national institutions which give
le It a much wider scope Of operatio'
d While 1t Is true that this work hi
10 been going Oh for some weeks, u
b. fact did not become generally know
lie until the announcement made recent
st by the currency association.
It has been estimated that the n
lg tional banks have loaned sometnii
K like $50, 900, 900 on cotton within q
past few weeks. There is still Q lar
amount of available currency On hal
in the banks that can be loaned
cotton. According to the figures
Gently issued by the United States
} partment Of agriculture this yea
r is estimated at approximate
$3.50, 00o, 900, figuring on q basis OF I
cents a pound.
An Atlanta state bank was n
, the first to offer any real financial I
? to the cotton farmers Of the Sou
The activities Of this bank. howev
was confined to Its customers
+. Georgia alone. This bank is loani
. money on cotton at six cents o pou
and storing the cotton In Its own wa
\ houses In Atlanta. The bank ofici