The Washington herald., 1915-08-26
PRESIDENT AGAIN
AIDS COTTON men
Appeals to South's Bankers
to Make Loans at
Low Rates.
HARDING AS SPOKESMAN
Federal Reserve Board Member Out
lines Plans in Birmingham
Speech.

The administration second step to
zion created by the action OF the al
lied governments in declaring the staple
contraband was taken yesterday when
President Wilson appealed to the bank
ers Of the South TO make cotton lOa Is
at interest rates OF from l to Per
cent above the actual cost of money.
The Presidents appeal was made in
letter to W. P G Harding of the
Federal Reserve Board. and NJ. Hard
ing was authorized to read it in an ad
dress delivered by him before the Ala
hama Merchants Association at Biz
mingham last night. The Presidents
evident intention is to obtain for the
cotton growers the easiest possible lOnu
accommodations upon the %,g,"0c.G)o Of
government gold. which Secretary Of the
Treasury NCAdoo announced this Week
would be deposited in the Southern To-
serve banks a. it is needed.
Right 10 Expect.
The President expressed the hope that
the producers of cotton may feel them
81 Ives free. to exact of the banks with
which they deal what they undoubtedly
have the right to expect in the matter
"f interest rates.
The speech delivered by Mr.. Harding
was a lengthy and thorough going dis
CuSsion of the cotton problem. Added
importance is given some of his utter
ances by tine fact that he conferred with
President Wilson the day before his de-
parture for BIRMINGHAM
Mr.. Harding beSpeakS reasonable at
titude on the part of tn" cotton planters
in regard TO the allies COntraband deCla-
ration. pointing out the arguments which
are used in its defense. namely, that in
some measure the staple is munitiOn Of
war. He pointed. too. to the indications
that he has noted in the past several
months that Germany has been getting
a large supply of cotton through neutral
channels.
Here is the Presidents letter:
My Dear Mr.. Harding: Thank you
sincerely for your letter of August %.
1t gives me just the information ! de-
sired What interests me most is this:
1t is evident from what you tell me
that the country banks with whom the
farmer and other producers directly |
deal, can get money at from to IL
per cent and that the question whether
the benefit Of this advanta geous rate
Is 70 ne fNitn'Aru 10 IN ldIlll"I Is III
their hands
Asks Low Rate.
1t is income nivabIe To- me that those
who are responsible for dealing direct
1y with the producers of the country
should he willing to jeOpardize the
prosperity of the country itself by re-
fusng TO share with the producer the |
beneficial rates now obtaine bic for |
money loans. l think that can con- |
fdcntly expect that the banks in the .
cotton States and in the agricultural /
regions generally will content them .
selves with n rate not mor' than l or I,
per cent above the rate which they /
Themselves pay.
81 hope that the facts which YOU !
have stated to m" will become Gener-i }
ally known among the producers of !
the country 50 that they may feel them |
selves free to enact of the banks with |
which they deal what they undoubtedly |
have right 10 expect. ordia lily and .
sincerity yours.
"WOODROW WILSON"