The Birmingham age-herald., 1914-08-28
Both Must Practice Self Denial Despite Fact That the Government Will
 Advance Aid
POSITIVE THAT NO
 MONEY WILL EVER GO
 TO FARMERS DIRECT
Former Governor Made Effort to Have Valorization of $40 Placed on Bale of Cotton-Sugges-
 ton Failed

B. B. Conner, operator of two of the largest cotton mills in Alabama. is of the opinion that the situation as re- gards the products of agriculturists is in the hands of the farmer and the merchant.
 Mir. Conner was one of the Alabama delegates to the convention called in by Secretary McAdoo to consider means by which the farmer in the coming crisis might be pro- tected. In an interview authorized yesterday he tells what occurred at that convention.
 No money will be advanced to farm CTS by the government save through banks which have conformed to the national currency laws. And no stand ard valorization will be attached to bale of cotton.
 MT. Conner says:
 MT. Corners Statement
 "The meeting called at Washington by MT. McAdoo. Secretary of the Treas ury, on August 24, made perfectly clear that the government would not undertake to advance money directly to any holders of receipts for any prod uct whatsoever
 At this meeting MT. McAdoo made it perfectly clear that the governments transactions in financially helpful way would be through the national banks, or those state banks which had conformed or would conform to the national currency laws. It was also made perfectly clear that no valoriza- tion or certain amount would be au- thorized by the government, that is the government would not undertake e to say how much any bank should ad- vance on bale of cotton, bushel of wheat OF corn, or pound to tobacco, but the amount advanced would be a question to be settled between the banks and holders of receipts
 ''It was also made perfectly plain that receipts, as regards cotton, from standard warehouses would not be ab- solutely required, that cotton pro- tected from the weather by being put on timber or logs, covered by tarpau- lin protection from the weather, and enclosed by sufficient wire fence, and receipts issued by responsible parties, and accepted by the banks. would be, as far as the government is concerned, satisfactory.
 "In the meeting I personally attempted the suggestion that the regional banks recognize as safe a loan of $40 bale on 500-pound middling cotton, stating that whatever amount the bank adopted in a general way as a safe basis for loan would be more or less a predicate as to the value of the cotton, notwithstanding that valorization is as foreign to the gov ernment's idea of giving the banks finan- cial aid as anything can possibly be.
 Merchants and Farmers
 From the above I believe that the price of cotton in the near future will in a large measure be established by the banks and the farmer. There will be no cotton sold below what the banks will advance It will sell somewhere above whatever they will advance, I mean in a quasi-universal way If the farmer to any large extent forces the market, there being so few buyers. cotton will be cheap Liverpool has usually been the largest buyer of cotton at the beginning of the season. Liverpool, I understand, will not be in the market for sometime. Many of the American mills have also more or less stocks of high cotton and quite a few goods made of high priced cotton, and we assume that they will not be in a very great hurry themselves to buy the new crop.
 '.The price, to repeat, depends in the largest measure upon the farmer and the banker The federal government, more than ever before, has come to the aid through the banks, of the farmer The question is, will the farmer stand by him self? That we have a big cotton crop that cotton is going to be much cheapec than it was, is certain, but whatever ad- vance the banks will make to stay the pressing necessities of credit or other wise, the balance in stern self-denial must be on the farmers and merchants part. and will win in the long run. It is futile to expect any high priced cotton. It is also unnecessary to make any extremely low priced cotton.
 'The Secretary of the Treasury, MT. McAdoo made a most admirable chair man, and impressed everyone that our government was in earnest, sympathetic knowledge and contact with the situation. and would render every lawful aid in tid- ing the country over these most abnor- maj, fearful times, for all of which we have abundant cause to be thankful