Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1914-12-03

currency measure the cotton must be
properly warehoused before loans can
be made upon 1t.
Absence Of Cash Felt.
It 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 a 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 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 1t 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 a collateral for borrowing money.
In this manner real money is being
put into circulation.
In Georgia and portion of Tennes-
see this condition of affairs is especial
~ 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
uessee are making loans on cotton
warehouse receipts. These loans are
being made on the basis OF six cents
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 4
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 $5000O,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 on basis of ten
cents a 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 pound
and storing the cotton in its own ware
houses in Atlanta. The bank officials
say they will loan as much as $40. 0OO.-
600 to the cotton growers of Georgia
who are members of this bank.
According to the offer of this bank
t will lend money to the grower at
six cents a pound. The current rates
Of interest will be charged on the
notes which will mature July /. 1915.
At the separation of that time the bor-
rover VIII have the option of extend
ng the note to longer period. The
borrower will have the privilege OF |
telling his cotton at any time he de |
tres. providing he can get enough for |
lis cotton to pay off the note and the /