The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-08-19
FARMERS MUST HOLD COTTON
SOUTHERN CONGRESS- CALLS ON
PEOPLE TO AVOID GLUTTING
MARKET FOR STAPLE.
Committee Will Labor on i'm Effort to
Save South From Full Effects of
European War-WurchOusc System

washington, Aug. 14.-Thc South
crn Cotton congress. after indorsing
various plans for the relief OF the
crisis Of the cotton market resulting
from the European war, concluded
it's sessions here tonight. The con-
grcss authorized various committees
to cooperate with the federal and
State authorities in their efforts to
enable the Gotten growers to weather
the financial storm and secure a fair
price Cor the present cotton crop.
After indOrsing the work so far
done by the Southern representatives
In congress in the matter of furnish
ing transportation for the export
trade and providing currency to
finance the crop. the congress IN
dorsed bill introduced in the house
by Representative Wingo of Arkan-
sas, authorizing the issuance of fed
cral reserve notes on cotton.
Later the report from the resolu-
tions committee was adopted outln-
ing plan to meet the entire situa-
ton. This provided for the appoint
ment Of n committee of five members
to cooperate with congress, the treas
'ry department and the federal re-
serve board to seek means Of "fnanc-
ing and marketing the crop, without
ll1nnnpncCn 1.,c,, <~ g.,
The report recommended that all
growers hold cotton Of the present
crop for the price of IL 1-2 cents a
pound. based on middling cotton.
1t urged the federal reserve board
and the secretary Of the treasury to
place $3O0,OO0.OOO in the banks of
the South on the basis Of the cotton
production in each State. 1t then
proposed that every farmer should
nave the right to go to his bank and
secure loan on notes maturing in
six months but renewable for six
months, secured by his cotton on one
half OF the crop he raised, to 80 per
cent of the value Of the cotton based
on the average price for the last five
years.
These notes the report recommend :
Ell. should be made rediscountable in
the federal reserve banks.
AS originally presented, the report
recommended that the notes contain
u stipulation that the farmer would
raise only half Of a normal crop in
1915, and If the war was still in prog.
ress on April 1. should raise only one
quarter of his crop, thus holding
down the 1915 production to prevent
glut. caused by carrying over this
years surplus.
n vigorous discussion resulted in
striking out this provision and recon-
mendcd only that the farmer be
urged to cut down his crop without
stipulation in the proposed notes. The
report recommended that tobacco and
other crops should be handled in the
same way, in the discretion of the re-
serve board.
president e. j. Watson was author
lied to appoint committee to take
up the question Of providing ware
houses to store such Of the crop as
VIII be held over until next year
lie was also authorized to name n
committee Of member from each
cotton State to call a State conven-
tion OF nine delegates from each
county representing farmers, mer-
chahts and bankers, to urge governors
to call special sessions of State leg
islatures to immediately take up the
question Of installing State warehouse
systems.
Representatives Of the congress will
remain in Washington to cooperate
with the Southern representatives in
congress who are working out plans
for Legislative aid to the South.
~ pan OF pcrmancr. orga nization
winch contcmplatcs annual meetings
ot the congress was worked out by
the organization committee and adopt-
ca. These officers were elected for
the coming year: President. t. ]
watson OF South Carolina: vice prcsi-
dcnt, Charles st. Clair of Tcx,s. car
re'ary and treasurer, Daniel c..
Hughes OF Georgia.
MEDIATION POLITELY DL,tIIxI,n