The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1914-10-07
CALL AT WHITE HOUSE

Washington, Oct. 3.-Giving it as
his opinion upon leaving the. White
House today, where he had gone t.
discuss the cotton situation, that it is
now very probable that in the mex
few days under the new banking anC
currency law the regional reserve
banks in the South will be organized
and that within a few weeks they will
be operative and that this will dc
much toward getting matters adjust
ed, Senator E. D. Smith today made
the following statement:
I'm company with a number of con.
gressmen I went this morning to see
the president in reference to the cot
ton situation in the South. Other
Southern representatives as we'll AS
I received hundreds of letters to the
effect that it was impossible to obtain
loans on cotton; that what money had
been sent into the different cotton
growing States had not been used for
the purpose of loaning to the farmers
to enable them to meet their pressing
obligations and to hold tehir cotton
off the markets.
What McAdOO Should Do.
eve impressed upon the president
the fact that several millions Of bales
could not be sold at any thing like
the cost of production because of the
European situation; that what was
needed was to get the money direct
to the farmer at the lowest possible
rate Of interest, and that the situa-
ton demanded immediate relief; that
the secretary of the treasury in de-
posting government funds in the ma
tional banks in the South for the pur-
pose Of relieving the situation should
instruct the banks to whom this mon.
ey was sent that it should be loaned
specifically and exclusively on cotton.
There is without doubt now sufficient
funds to relieve the situation if they
can be gotten directly to those needing
the money.
"The president was informed by
members of the committee that under
the law the secretary of the treasury
had the right and power to instruct
the national banks acting as fiscal
agents for the government to what
specific ends government money
should be used.
"Of course, the secretary Of the
treasury has the right to concentrate
the government funds at such points
as he sees fit. Therefore, the COM
mittee laid before the president the
proposition that the secretary of the
treasury place such amounts of the
government funds in the South as
were necessary to meet the situation
with instructions to the banks to use
these funds as above indicated.
ut was also brought to the atten-
ton of the president. that, if the sec
retary Of the treasury. were to use
this power with the added instruc-
tions to the national banks that they
accept from State banks in good
standing cotton securities or paper
secured by cotton and furnish these
banks the money received by the ma
tional banks from the government for
this specific purpose, the situation
would be relieved.
"The question as to the power OF
the secretary to determine the rate
of interest was also discussed. In the
opinion of most Of the committee, 1t
was clearly in his power to do So
The president was intensely interest
ed in the conference and is profound
" in earnest in using every effort IN
his power to relieve the situation.
"He will talk this matter over with
the secretary of the treasury at once
and will also discuss the situation
with the federal reserve board. 1t IS
now very probable that in the next
faw days under the new banking ana
currency law the regional reserve
hanks in the South will be ora%nlZad
which in q few weeks will be opera
tive This will undoubtedly add stlll
further relief, for its terms tdill We
further relief, for under its terms
paper on farm products is made eliSl-
BILE to discount upon which federal
reserve notes may be issued for SIX
months. It was also pointed out TO
the president that the secretary OF the
thoSp funds in