The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-09-07

oalanlities. and there is even more rea-
son why it is necessary ana right TO
make appropriation to tide over mis-
fortune its entire people,--aud il
amounts to that.
Value Is Nation wide.
The value Of cotton is not a sec
tional problem, but is nationwide. 1t
IS true, that the corn and grain states
have an enormous yield Of products.
and that speculation has run up its
values, but these people viii be hamp-
cred in transportation OF their pro-
ducts to foreign countries, and must,
to 81 great extent. depend on their
market in the United States. The cot
ton states are the largest customers
Of the provision producing states, and
you can readily see that If cotton does
NOT command cash, that the grain
states will suffer. 70 an extent, for
loss OF this market. The longer the de-
lay in relief, the more difficult il
viii be to stem the downward trend
Of prices, and to restore normal con-
ditions.
If the products Of the south do not
command cash at a fair value notes
cannot be paid, and it means the
wrecking OF many business institU-
tiOns IN the south, because the banks
cannot procure currency unless they
have commercial paper, and their pa
per will not be commercial paper be-
cause there viii be no hope Of it's be-
ing paid as the usual cash crop will
not bring cash to pay with.
Make Loans Direct.
II you have not the power TO put
into operation direct relief to the
people I believe, on a recommendation
from you. that congress will give you
such power, and l believe that you
can give immediate relief along the
lines 1 suggested, and that this relief
should come In the form Of direct loans
on cotton, and, if necessary, other
non -perishable products Of the Coun-
try. Speaking for the cotton producer,
because / am more familiar with the
cotton proposition. 1 believe that If you
will lend, direct. $40 per bale, or s cents
per pound on cotton, rniddIing basis,
to the extent of lending on four or
five million bales that the entire situ-
alton can, and will, be saved. Such
loans can be put IN operation directly,
without the appointment Of a, single
new agent, and merely by printing
q half dozen, or less, forms because
the loan can be made direct through
the local banks,-say at four five, or
six per cent interest. Let the gov
ernment pay these local banks one
half Of the interest on the loan for
their services, and their guarantee:
that the cotton upon which the loan is
made, is properly waTehoused: of a
certain weight; Of a certain grade;
that it is covered by fire insurance;
and that the title of the bale goes
with the delivery Of the receipt. For
instance,-say man comes to my
bank with ten bales Of cotton, weight
$3.50 pounds. I deduct 25 pounds from
each bale to make my bank safe on
it's guarantee of grade and weight,
and deliver him four hundred dollars.
take his note direct TO you. or some
bank that you designate, and attach
to this note his warehouse receipts
for the ten bales Of cotton. Then, to
get back the money my bank advanced,
I draw on you, or the designated bank,
for $4040, sign this draft, and a Ger
tificate, which is made a part Of the
draft, certifying that I have advanced
for the government S400 on ten bales Of
cotton, weighing not less than 5000
pounds, and averaging not less than
CONTINUED on PAGE T~NOl