The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1915-12-16
Banks Help Cotton
Growers Hold off
For Higher Prices
HALLE PREDICTS ADVANCE WITH
CROP SHORTAGE OF FIVE
MILLION BALES.


Halle, who has just returned from an
extensive tour through the South, said
today that the farmers are not selling
their cotton, but are planning to hold
the crop for higher prices. The banks,
he said, are generously assisting the
producers in this movement. In dis
GUESSING the general cotton situation,
Mr.. Halle called particular attention
TO the shortage of fertilizers and to
the fact that the textile mills through
out the United States are extremely
long of contracts and dangerously
short of cotton
'In the opinion of the Southern bank
ers," said Mr.. Halle, 'the only attrac-
tive loan today for the enormous sur
plus that has accumulated in the vari-
Gus banks of the South. is a loan of
from $50 to $40 bale on cotton on
which they received from six to eight
per cent interest.
Now the farmer has received from
500 TO $23 a bale for his cottonseed in
cash and this amount added to a loan
of $50 from the bank shows that the
farmer has already received from $50
to S55 on each bale, with the certainty
of getting from So to $50 a bale more,
in the event the banks are allowed to
hold this cotto2&sg what they consider
the real. intEia syalsf - the staple,
which is around fifteen cents to eigh-
teen cents a pound.
The bank would be foolish TO adj
wise any farmer to sell his cotton at
prevailing prices, for the reason that
the cotton crop is known to be 5000
900 bales short of last year, and under
these conditions one can at once see
that the future price of cotton is
bound to advance.
The main point that strengthens
the farmer is this: AS long as the
banks keep up their loans on cotton
their surplus money is active and loan
ed against the most tangible security
eXtant today The banks realize that
a bale of cotton with a $50 loan
against it creates a double security
(the farmer and the bale) as long as
it remains intact. Now, on the other
hand, the cotton is insured for full
value, therefore, in the event Of less
by fire while carrying this loan the
bank is thoroughly protected, and the
farmer still receives the difference al
the current price.
Another point is, for argument
sake, we suppose that the farmer hay-
ing received his $50 a bale on his
cotton, desires additional credit for
the purpose of purchasing supplies
for his farm. He applies to his mer-
chant for credit, at the same time in
forming the merchant that he has so
many bales of cotton under loan from
TIE lOCdI Uduh. NOW tIoI Incl :
chant is in close touch with the bank.
and knowing that the farmer has this
additional surplus. readily affords him
the necessary credit.
THE deductions to made from these
facts are: First. that no farmer is
forced through the need of money to
sell his cotton. Second, the crop be-
ing 100000 bales less than year
ago, and linters being excluded as a
factor in the current market, the bank
having the utmost confidence in the
future advancement of cotton, clings
with persistency to those attractive
loans. therefore, placing the farmer
today in the most independent atti-
tude he has occupied since the Civil
war, and putting cotton values in an
impregnable position