The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1914-08-20
SHOULD HOLD COTTON
WILL PRESS PLANS TO AVERT
DISASTER.
Committee Will Labor on in Effort to
Save South From Full Effects Of
European War.

Washington, Aug. l4.-lne South
ern Cotton congress, after indorsing
various plans for the relief OF the
crisis of the cotton market resulting
from the European war, concluded
it's sessions here tonight. The con-
gress authorized various committees
to cooperate with the federal and
State authorities in their efforts to
enable the cotton growers to weather
the financial storm and secure a fair
price for the present cotton crop.
After indorsing the work. so far
done by the Southern representatives
in congress in the matter of furnish
ing transportation for the export
trade and providing currency to
fiuance the crop, the congress in
dorsed a bill introduced in the house
by Representative Wingo, of Arkan-
sas, authorizing the issuance Of fed
eral reserve notes on cotton.
Later the report from the resolu-
tions committee was adopted outlin-
ing a plan to meet the entire situa-
tion. This provided for the appoint
ment of a committee of five members
to cooperate with congress, the
treasury department and the federal
reserve board to seek means of Fl
nancing and marketing the crop,
without unnecessary loss to the far
mers.'
Should Hold Cotton.
The report recommended that all
growers hold cotton of the present
crop for the price of II 1-2 cents a
pound, based on middling cotton.
1t urged the federal reserve board
and the secretary of the treasury to
place $500, 100000 in the banks Of
the South on the basis of the cotton
production in each State. 1t then
proposed that every farmer should
have the right to go to his bank and
secure a loan on notes maturing in
six months but renewable for six
months. secured by his cotton on one
half of the crop he raised, to so per
cent. of the value of the cotton based
on the average price for the last five
years.
These notes, the report recommend
ed, should be made rediscountable in
the federal reserve banks.
AS originally presented, the report
recommended that the notes contain
a stipulation that the farmer would
raise only half of normal crop in
1915, and if the war was still IN
progress on April l, should raise only
one-quarter Of his crop, thus holding
down the 1915 production to prevent
a glut, caused by carrying over this
years surplus.
A vigorous discussion resulted in
striking out this provision and recon-
mended only that the farmer be
urged to cut down his crop without
stipulation in the proposed notes. The
report recommended that tobacco and
other crops should be handled in the
same way, in the discretion of the re-
serve board.
President E. j. Watson was author
lied to appoint a committee to take
up the question of providing ware
houses to store such of the crop as
will be held over until next year.
He was also authorized to name a
committee of a member from each
cotton State to call a State conven-
ton of nine delegates from each
county representing farmers, mer-
chants and bankers, to urge COVER
nors to call special sessions of State
legislatures to Immediately take up
the question of installing State ware
house systems.