Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1914-10-23
John Sharp Williams
on the Cotton Situation

Washington. D. c.. October 18TH 1914
Hubbard Supply Co..
Sh uQualak. Miss.
Gentlemen: have your letter of the |
14th. AS I understand Senator Bank |
heads proposal, it is that the state of
Alabama purchase one-half of the cot
ton produced within her borders this
year ut ten cents per pound and that
payment be made by an issue Of four
per cent bonds payable on or before
three years after date. This is an out
line, the sum and substance Of his pro-
position, as understand it, with GER
tain minor details as to grading, ware
houses, etc. I believe that proposition
to be perfectly practical.
It has been q matter Of humiliation
to me and to some other southerners
here that, while we were asking the
federal government to buy our cotton
and carry it over, not single southern
state has taken single step to help
its own citizens.
There are very many objections to
the proposition for the federal govern
ment to issue bonds and buy cotton, al
though voted for the proposition. The
objections go as well to the precedent
which would be established for all time
to come as to the general principle that
the federal government ought not to
use its credit or its money to help q
special industry. Notwithstanding
the Sc objections, it seemed to me that
the situation was so desperate that it
was my duty, representing the people
of ascorton state, to vote for the provi-
sion as embodied in the Smith amend
ment.
Even with the federal tax provision
contained in it, which | strove unsuc-
cessfully to strike out of the Smith
amendment, there is no doubt in the
world Of the power Of the states to DC
it. There are some few southern states
which have prohibitions in their consti
tutions from lending their credit to pri
vate enterprises. In my opinion. sucf
prohibitions would not apply to cast
like this, because it is not case O.
lending credit but purchasing com
modify outright in the market. Blu
even if It were held that they did apply
in case like this. any state constitu
tion cen be changed.wishin thirty day
simply bv callingsa constitutional con
II vention.
I do not think that Senator Bank
heads plan by itself, If nothing els
u were done, would be complete solu
ton to the difficulty. In addition +
that, there must be reduction Of acre
age brought about in such away as tina
the world will know beforehand that
is going to take place. If such redu'
ton were brought about in such way
q then the effect upon the price OF tn
cotton now on hand would be felt i'm
mediately.
Voluntary reduction of acreage b
voluntary association or agreemel
j would not accomplish the purpose Il
the simple reason that nobody wou
believe that it was going to take plac
Southern cotton farmers have
often agreed to reduce acreage and hay
not done it, that the outside world ju
laughs when another agreement is mad
IN have no doubt that reduction W
take place next year because these ci
cumstances are SO peculiar that it W
be forced. but the trouble is to NAL
the outside man believe it, and unle
he believes it, the effect upon the pre-
N ence price of cotton will not be fe
The state legislature ought to pass
law to reduce acreage at the san
4 time they issue bonds.
M am, with every expression of regar
Al Uary frs1lxy v0r1rs