The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1914-11-05
Heavy Financial Depression
Gradually Being Relieved.
COTTON GROWERS GET MONEY
National Banks Are Reaching Out
Helping Hand and Extending FL
naneIaI Aid to Farmers-Loans
on Warehouse Receipts.

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money is becoming freer The bank
ing institutions of the southern states
are coming to the aid Of the cotton
growers with cash, advancing loans on
cotton warehouse receipts.
a Tough it 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 ad-
vanced to the growers at the rate of
six cents pound, or approximately
$50 bale. This, money is represented
principally by the Aldrich-Vreeland
currency furnished the national banks
by the United States treasury depart
ment. Under the provisions of this
currency measure the cotton must be
properly warehoused before loans can
be made upon it.
Absence Of Cash Felt.
1t has been the absence of cash that
has most greatly affected the South.
There never has been time since the
European war began when there was
not q demand for the wares Of the
merchant, but no one had money to
pay 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
piled their immediate wants by accept
ing cotton in payment of their pur-
chaseS. Old accounts we're also set
tied with cotton. But soon the average
hand than he knew what to do with.
He also found it difficult to pur-
chase from the wholesale houses and
the jobbers as they were not prepared
to 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 is placing his
bales in the nearest warehouse. The
receipts he receives from the ware
house he takes to the bank he has
been in the habit Of carrying on his
financial transactions with, using them
as collateral for borrowing money.
In this manner real money is being
put into circulation.
In Georgia and a portion Of Tennes-
see this condition of affairs is especial
ly 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 currency
association Of Georgia an announce
ment was made that the national
banks of this state and part of Ten
nessee are making loans on cotton
warehouse receipts. These loans are
being made on the basis of six cents a
pound.
Cotton Must Be Stored.
The only provision that has been
stipulated by these banks is that the
warehouse in which the cotton is
stored must be acceptable to the bank.
A great number of these. loans are
being made through the agency banks
of the national institutions which gives
1t much wider scope OF operation.
While it is true that this work has
been going on for some weeks, the
fact did not become generally known
until the announcement made recently
by the currency association.
1t has been estimated that the ma
tional banks have loaned something
like $50,000,000 on cotton within the
past few weeks. There is still large
amount of available currency on hand
in the banks that can be loaned on
cotton. According to the figures re
Gently issued by the United States de-
partment of agriculture this years
crop is estimated at approximately
$750,000,000, figuring or a basis of ten
cents pound.
An Atlanta state bank was one of
the first to offer any real financial aid
to the cotton farmers of the South.
The activities of this bank, however,
was confined to its customers in
Georgia alone. This bank is loaning
money on cotton at six cents a pound
and storing the cotton in It's own ware
houses in Atlanta. The bank officials
say they will loan as much as $3O,OO0,-
GOO to the cotton growers of Georgia
who are members of this bank.
According to the offer of this bank
1t will lend money to the grower at
six cents pound. The current rates
Of interest will be charged on the
notes which will mature July /, 1915.
At the expiration of that time the bor-
rover will have the option of extend
Ing the note to longer period. The
borrower will have the privilege of
selling his cotton at any time he de-
stres, providing he can get enough for
his cotton to pay off the note and the
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6ankhead's Plan Favored.
w p G. Harding Of A1ahama ono