The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-08-26
CALLS On BANKS 10
CHARGE LON RATES
President Points Out Duty Of EInan
cial Institutions to Coun-
try's Producers.
EASY LOAN TERMS NECESSARY
Money Deposited by Government With
Banks should BE Used ms Literally
as Possible 20 Relieve situation OF
Growers. \

washington. Aug. 15.---The admins
tration's second step to assist the cot
ton growers in the situation created
by the action Of the allied governments
In declaring the staple contra ba nd,
was taken today, when President will
son appealed to the bankers OF the
South to make cotton loans at interest
rates of fpom one to two percent
above the actual cost of money.
The Presidents appeal was made In
letter to w. p. G. Harding, OF the
Federal Reserve Board, and Mr.. Hard
ing was authorized to read II in an ad-
dress delivered by him before the Ala
bama Merchants Association at Birm-
ingham to night. The Presidents
evident intention Is to secure for the
cotton growers the easiest possible loan
accommodation upon the $3o.ooo.o00 OF
government gold which Secretary OF
the Treasury McAdoo announced this
week would be deposited in the South
ern Reserve Banks as II 10 needed.
The President expressed the hope
that the producers Of cotton may feel
themselves free to exact OF the banks
with which they deal what they un-
doubtedly have the right to expect"
in the matter OF interest rates.
The speech delivered by Mr.. Hard
ing was lengthy and thorough going
ulHCuS8toN OA tnt NottOh PtoUiEa f>N@~
ed importance liz given some of his
utterances by the fact that he con-
ferred with President Wilson the day
be fore his departure for Birmingham.
the presumption being that he dis
cussed the speech with Mr.. Wilson.
BEsPEAKs REASONABLE
ATTITUDE As TO COTTON.
Mr.. Harding bespeaks reasonable
attitude on the part of the cotton
planters in regard to the allies con
traband declaration pointing out the
arguments which are used in it's de-
Tense namely, that In some measure.
the staple lis munition OF war. He
pointed too. to the indications that ne
has noted In the past several montha
that Germany has been getting large
supply OF cotton through neutral eouh-
tries.
Here is the Presidents letter:
"My dear MFR Harding:
Thank YOU sincerely for your iet-
ter of August 23rd II gives me just
the information I desired.
What interests me most is this; IL
Ia evident from what you tell me shat
the country banks with whom the
farmer and other producers directly
deal can get money at from four 20
four and half per cent, and that the
question whether the benefit of this ad-
vantageous rate Is TO be extended 10
the farmer liz In their hands. II Is In
conceivable to me that those who ara
respon stble for dealing directly with
the producers of the country should
be willing to jeopardixe the prosperity
OF the country itself by refusing TO
share with the producers the beneh-
ciaI rates now ohtainable for mony
loans. 7 think that we can confidently
ax,en+ that tha hanks In the cotton
states and In the agricultural regions
generally will content themselves with
a rate not mere than one or two per
cent above the rate which they them
selves pay. hope that the facts which
YOU have stated to be will become gen
araliy known among the producers OF
the country. so that they may feel
themselves free to exact OF the banks
with which they deal what they un-
doubt eddy have a right to expect
Cordially and sincerely yours.
WOODROW WILSON"