The Birmingham age-herald., 1914-10-16
HARDING URGES TIE BANKHEAD PLAN AS MEANS OF RELIEF Thinks Governor Should Call Extra Session to
 Handle Situation ARTIFICIAL MARKET
 MUST BE CREATED Points Out That Statement Repre- sents His Views As Citizen and
 Not As Member of Federal
 Reserve Board

Washington. October 15--especialD W. P. G. Harding of the federal reserve board today issued statement to the people of Alabama on the cotton situa- tion and giving his views on the best means of securing relief.
 MT. Harding things the creation of an artificial market" is the only means of relief in sight. and he indorses strongly the suggestion recently made by Senator Banl<hcad to issue bonds for taking about half the Alabama crop off the market
 MT. Harding urges the governor of Alabama to call the legislature together at once to consider the cotton problem. "The governor has a tremendous re- sponsbility and a great opportunity. says MT. Harding, land each days re- | lay means additional loss to the farm CTS and business men of Alabama" l The statement which MI. Harding says expresses his beliefs merely as T | Der of the federal reserve board, is as follows:
 | Many plans have been suggested and some facilities provided by means of Temporary loans on cotton for tiding over the situation in the south, which l is now becoming acute, but this to my
 mind does not afford tho real solution
 of the problem as such loans only pyra-
 mid the liability and postpone the day
 of reck onng
 Need of Artificial Market l What is really needed is a market, land as there is no adequate natural market for the time being the dues- ton reverts to the possibility of ere ating an artificial market Attempts have been made to create such mar
 <et through the national government, but it is clearly impossible, both from ! a legal standpoint and for the practi- cal reasons set forth by Senator Bank
 head in his address to the people of Alabama, for the government of the
 United States to aid either as pur-
 chaser of cotton or as a lender upon tt
 as security Much valuable time has
 been lost in pursuing this phantom hope and the sooner our people aban-
 don the chase the better. If anything is to be done towards creating an ar tficial market, such action must be
 taken by the southern states for them
 selves.
 "The objection has been raised that
 owing to the length of time involved in amending the constitution of many
 of the cotton producing states, con
 certed action Is not possible, and that lit will be impracticable for any state
 to proceed alone. I was at first in-
 clined to this opinion, but upon more thorough analysis of the situation, ] have become convinced that Senator Bankhead Is correct in his statement that the people of Alabama have II within their power to conserve the value of cotton produced within the state. thereby averting disaster as far as they themselves are concerned.
 States Loss From War
 our people have been looking for ward to an era of great prosperity this fall, and their expectations were labout to be realized when the terrific war in Europe broke out which has Iresulted in world wide paralysis oi Itrade and Arrangement of credit. un' Ider ordinary circumstances the tarm- CTS of Alabama would have realized about s100.000, 900 this season iron their cotton crop. out of which wouls lhave been paid debts due within ano without the state of probably soo'- iO00 900 leaving surplus of about s4o'' oOo, 900 to represent the margin of pros, perity. Nature has been bountl1ui' pu, man made conditions are adverse and lit ia doubtful if the natural market TOT cotton in our state is broad enough te liiauidate the obligations incurred II producing the crop.
 .Senator Bankhead's plan does not pro vide for any new or additional indented ness, but seeks to change the form or ha
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