The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-08-17
THE BANKS AND THE FARMER.

We notice that the bankers OF 1eXaS
Gave held a meeting and have decided
to help the farmers get a fair price
for their cotton this fall, and that
eight cotton States were represented
at the meeting. They also state Unat
they have the Federal Reserve bank
behind the movement. We hope it is
true that they are going to do some
thing to secure fair price for cotton
and that they will make arrangements
to hold the cotton until fair price
may be realized.
Several plans were suggested last
fall for financing the crop, but the
money was never in such condition
that it could reach the farmer. There
was so much red tape attached to IL
and so many expenses that when it
was available it was beyond the reach
of the producer If any plan is de-
vised, if it is to help the South, it must
be so arranged that it will be within
tie reach of the small farmer, the
man who raises from five to ten bales
OF cotton. He is the man who needs
the help, and if he receives it, then
it will help U0e merchant, because as
a rule he is the man who owes the
merchant. In addition to that it must
be cheap money. The Regional Re-
serve bank, of course, will do business
through the local bank, and if the
local bank is to charge 8 per cent.
discount for the money it will not be
of very great assistance to the pro-
ducer. He can not afford to hold his
cotton and pay such a rate of interest.
We do not know what our banks
here are doing, but we Cope they will
make some arrangement to take care
of the cotton this fall. Last year even
a warehouse receipt for cotton was not
considered good collateral.
The Regional Reserve bank and the
money that the treasury department
said would be placed in tie South last
year to handle the cotton crop never
reached the farmer. 1t may have done
the cotton mills and the banks some
good, but little help was it to tie pro-
ducer of the cotton. What we need
is some scheme that will help the pro-
ducer, and then all OF US will be bene-
fitted.
AS we read tie statements from the
meeting of the bankers in Texas, the
plan is to help the producer of the
cotton to realize fair price for his
product and to help him from putting
it on tie market at once, and to mar
ket it gradually and thus keep up the
price. This plan presupposes ware
house system that will make mare
house receipts valuable as collateral
and even if the Reserve bank should
lend its assistance it will of neces-
sity have to be done through local
banks, because the Reserve bank could
not deal with each individual farmer
What will be done will depend largely
upon the attitude of the local banks
and the facilities for warehousing the
cotton. We believe that the local banks
here are going to do all they can to
aid the producer. They Fave so long
been accustomed to charging 8 per
cent discount they may not know how
to let money for less, even though
there should be arrangement with the
Regional bank for less rate on cot
ton stored in warehouses. The season
is nearly here and we hope arrange
ments will be made by which the pro-
ducer and the small man may receive
a fair price for the labor of his hands.
The Charlotte Observer a short while
ago had an editorial on "Toe Banks
and the Farmer" which we are going
to quote. Here's hoping the Observer