The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1915-08-11
SOUTHERN BANKERS
TO FINANCE COTTON
WILL TAKE CARE OF CROP UN-
TIL MARKET ABSORBS PRE-
SENT SURPLUS.
Texas Adopts
Warehouse Plan
Conference On Cotton-Men Called
to Meet in Galveston August 20,
to Discuss Marketing New Crop.

to Discuss Marketing New Crop.
Galveston, Aug. 8.-A move on
the part of the bankers of the South
to finance the surplus in this years
cotton crop until such a time as the
market will absorb all offerings is
rapidly taking definite shape. A call
IS being sent out by j. Hirsch, presi-
lent of the Texas Bankers Associ-
alton, for a meeting of representa-
tives of clearing house organizations
IN cotton centers of the South, at
Galveston on August IA, for the pur-
pose Of contemplating plans for the
proper warehousing and financing of
the surplus in the crop Plans as at
present outlined contemplate the car
ing for at least half of this years
production, if necessary
! Presidents of the Bankers Associ-
etions Of the cotton States have been
invited to attend. Governors of the
Federal Reserve Banks of st. Louis,
Richmond, Atlanta and Dallas are ex-
pected to be present at the confer
Gnce.
Texas. Builds Warehouses.
Texas bankers, according to Mr..
H!irsch, already have plans under way
.:or caring for fully half the crop in
&his State. A number of small ware
houses, with individual capacity for
storing 1000 bales Of cotton, r be-
ing constructed by the bankers out
of their own funds. These ware
houses cost $1,250 each, or $1.25 per
bale for each bale stored: Growers
who store in these houses. will be tax
ed this $1.25 per bale, the amount to
oe paid when the cotton is sold. At
ter this year the warehouses will be-
long to the men who stored the cot
ton, the bankers getting only a nomi-
nal storage charge for their trouble.
In the meantime money will be adj
vanced on this stored cotton at usual
rates. Already warehouses sufici-
cnt to care for 100000 bales are
under way, and the bankers expect
to increase this capacity to 100000
bales. . -.....
The action of the Federal Reserve
Board in throwing the resources of
the Federal reserve banks behind the
cotton crop has insured ample funds
Tor financing the crop.
Would Regulate Movement.
The conference at Galveston has
for its purpose the bringing of bank
ers in other sections of the belt into
line with the plans. Texas and the
! Western belt already have their plans
under way. The object now is to
get bankers in the eastern belt to
ioin the plan and thus the en-
tire cotton belt.
The object of the bankers is not to
valorize cotton, but simply to make
conditions such that growers will not
lie forced to turn loose their product
at ruinous prices when the crush
CT the movement to market is too
great for supply sources to absorb.
the major portion of the cotton crop
becomes ready for market in a period
Of about 80 days, whereas it's con-
cumption is spread out through the
tntire year. 1t is to feed this sup
Fly out just as the consumers de-
mand it that the plans of the bankers
are being perfected.
England's policy toward shipments
of cotton to Germany and Austria
and contiguous neutral countries
promises to make the movement of
the staple to the worlds spindles
slower probably than has ever been
the case. At the same time, how
ever, judging from last years con-
sumption and the present cror prom
ice, nearly, if not quite, all the SUM-
ply will be used before the Season
has drawn to an end. If growers are
enabled to hold their stools until
such a time as the world nee Is them
o fairly satisfactory price SHOULD lie
realized.
II. s. FOREIGN TRADE