The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1914-08-26
LOCAL BANKERS
URGEFARMERSNOT
TO PLANT COTTON
SUCCESS IN MARKETING pE.
PENDs ON cuRrAILlNe
PRODUCTION.
PREPARED TO FINANCE
ENTIRE CROP OF SECTION
prepare Another Money Crop For Next
year Say eankers-Prospect For
1000 Bales Here This sea.on-In.
surance Rates Lower-Advance On
Cotton Close to Real Value.

~ AN"eiohai CotlOu CONFER
ence Is being held in Secretary Nc.
Adoos Office in Washington and the
annual meeting of the Cotton Growers
ASSOCIATION in New Orleans is pending
the local bankers have not been idle
put have done deal of thinking
about the financing of the crop of this
section through the present crisis.
The significant thing hbout the
present situation said a prominent
banker today, "is that where before it
was necessary to carry only a small
part of the cotton, this year the entire
crop will have to be financed. The
European war will be felt by every
one connected with the cotton growing
industry because it has destroyed the
market. There is not one man so far
as know who will not need assistance
in handling his CROP
The plan adopted by the local bank
ers for financing the cotton crop of
this section is modification of the
plan which has been used here for
some time.
George c. Hauenstein, cashier of the
First National Bank of Commerce,
says that they are going to advance
from $50 to $35 per bale, which is on
basis of cents per pound and are
willing to carry the farmer for a rea-
sonable length of time or as much as
twelve months, if that is necessary.
The notifications on the customary
method of handling cotton locally are
In the first place that the local banks
are prepared to carry every bale pro-
duced in the section, he says, and for
as much as twelve months. In the
second place the banks are prepared
to advance on cotton much closer
to the real value per bale than is usual.
$35 under the present conditions is
not far from the actual value of the
cotton, he says, and the banks, in
order to supply the farmers with
money, are crowding the margin as
close as possible.
The method will be as usual, so far
as the actual transaction between the
producer and the banker is concerned.
The farmer will drive to town. deposit |
hi. hole o. tbo ooponraoe or v,orahorso |
and come to the bank with the ware
house receipt This receipt will be at |
tached to payable on demand note
bearing per cent interest and for |
each receipt the farmer will be able |
to borrow from $50 to $35. The ad- |
vantage of the demand note is that the |
farmer has to pay interest on the |
money only so long as he uses it. If
either he or the bank wants to sell,
or the bank wants to call its loan 1t
can be done without trouble.
The Importance of the preparations
to handle the whole crop during the
long period it will take to market it
will be seen on comparison with the
conditions of last year and the year
before. The banks advanced money
on cotton just as it is going to do this
year. but at any time larger amount
was out than they wanted the bank
was free to call on someone to sell;
] vt this year without market it
}ould not expect any sales and there
fore must be prepared to carry the
farmer all the way through.
In the country where there are
banks and merchants not so well situ-
ated as the Hattiesburg banks they
will be able to make the same arrange
ments with the city banks as they
make with the farmers.
Mr.. Hauenstein estimates that there
will be 1000 bales handled here this
season. Other estimates run from ten
to twelve thousand bales. This is
in striking contrast with the $4,000
baIes handled here in 1910 and IO0o
handled here in 1912. OF course the
CONTINUED on Page Four.) !