The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-10-21
STATES MUST BUY
idea IS TO PURCHASE half OF
COTTON PRODUCED
issue BONDS TO PAY
State Governments Can Immediately
Create Strong Artificial Market
These State Bonds Will be Com
patible as Collateral-Southern
States Have Power to Save Farmer.


The South must look to the re-
sources Of its state governments rath-
er than to federal aid for any relief
from the financial stringency that
threatens to follow decentralization OF
the cotton market, in the opinion OF
". P. G. Harding, prominent Ala
bama banker and member OF the
federal reserve board.
In a statement issued at Washing
ton Thursday Mr.. Harding urged that
immediate relief measures be taken
by the several states to tide over a
situation he said was now becoming
acute" He made it clear, however,
that his suggestions were not in the
nature of an official expression ema-
mating from the reserve board, but
set forth merely his personal conclu-
sionS.
Mr.. Harding's statement was ad-
dressed particularly to the people OF
Alabama, in support of the plan re-
Gently suggested by Senator Bank
head for extensive purchase.of cotton
Oy IuS SIdIS SOsOIAA4Ohs, ~ w Pe~AN
for by an issue of state bonds.
What is really needed is a mar
ket," said Mr.. Harding; "and as there
is not adequate market for the time
being an artificial market can be
created. Attempts have been made
to create such a market through the
national government, but it is clearly
impossible, both from a legal stand
point and for practical reasons, FOR
the government of the United States
to aid either as purchaser of cotton
or as lender upon it as security.
Much valuable time has been lost IN
pursuing this phantom hope. and the
sooner our people abandon the chase
the better. If anything is to be done
towards creating an artificial market,
such action must be taken by the
southern states for themselves.
Senator Bankhead's plan does not
provide for any new or additional in
dehtedness, but seeks to change the
form of liabilities already incurred by
coaverting individual! debts into
obligations of the state.
.sWhen he proposed that the state
purchase one-half Of all the cotton
actually grown within her borders at
. price representing what is probably
the average cost of production, Zoe
per pound. and that payment be made
by an issue of per cent. bonds pay
able on or before three years after
date, he points out the way to estao-
Esh an artificial market, by means OF
which the cotton surplus in Alabama
can be carried over beyond the dan
ger point, and he has, in ny opinion.
suggested the most practicable way of
securing immediate and effective re-
lief.
tsI have taken occasion to ask job
bers and bankers various sections
of the country for their views and
do not belyieve that any creditor OF
an Alabama farmer or merchant
would hesitate to take thos, Alabama
bonds in liquidation of obligations,
for in most cases the only security
they now have is the equity in the,
cotton in the hands of thousands OF
individual holders. for which there is
practically no cash market. This ap-
parent purchase of cotton by the state
would be really mobilization OF
debts. concentration of assets" d"
While final decision was not reach
ed by the federal reserve board on
the proposal for a s150,000,000 loan
by bankers to aid cotton producers.
enough was accomplished to make 1t
certain the board would assume gen.
eral supervision of the fund if the
plan should be carried out: The mat
ter was discussed at length at the
board meeting and, although it al
ready has the approval of the board
in principle, difficulties as to details
of administration of the fund were
encountered which delayed final &C
$ion.
President Wilson and Secretary
McAdoo, however, are known to be
greatly interested in the success OF
the plan. and it was predicted that
the board would work out system of
administration for the fund satisfac-
tory to the government and the par
ticipatirg bankers. Festus ]. Wade.
and George W. Simmons. the st.
Louis bankers WHO have taken lead
ing part in pushing the plan had
Ione conference with Secretary Nc