The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-09-13

bankers in Galveston: For the first
time in the history of the South. gem
tlemen, the Southern bankers have
the financial ability TO market grad
ually this crop. 1t would almost APP
pear as If the Federal Reserve act had
been drafted for the benefit of South
ern producers" Just because the re-
serve act doesn't give the farmers all
the help they need--iust because II
doesn't take the place. nor profess to
lake the place. of the much-needed
rural credits legisIation----is no reason
! for denying or minimizing the great
/ advantages 1t does offer.
The Federal reserve system does en-
able the banks in the South where
money Is needed, to draw upon the
great reserves In other sections for
making loans on the cotton crop; or
as Mr.. = p. G.. Harding of the Fed
eral Reserve Board officially says:
Banks have now ample facilities
which they have never before enjoyed
for rediscouhting the notes taken
against such loans, and 1t is for them
more than for any other agency, to
determine the policy Of the South In
regard to the marketing of the pres
ent cotton crop"
And President Woodrow Wilson in
letter to Mr.. Harding writes: 1T
( is evident from what you tell me. that
/ the country banks with whom the
farmers and other producers directly
! deal can get money at from four to
| four and a half per cent.
think that We can confidently ex-
/ pect that the banks in the cotton States
and in the agricultural regions gem
orally will content themselves with
a rate not more than one or two per
a raf i~t
/ selves pay 1t is up to the banks
TO justify this faith expressed by the
head of the nation.
! And the crop can be warehoused.
! Mr.. Harding points out thkt even
/ last fall the South had facilities for
storing l,57f. 4s5 bales and these
facilities have been greatly increased
/ since then.
The next thing I probably ought to
say is
i5.-Twelve- Cent Prices Are Justified,
ContrabFand or Ne Contra ba nd.
OF the $4,000 bales OF American
cotton shipped to Europe in the fiscal
! year ending July 81. 1915 only 242. 600
bales went TO German ports. OF
| course. there was more that went in
| directly to Germany but we must
remember that a considera Bile part of
Germany's normal demand for cotton
was exported TO Germany's foreign
trade and that This trade will now be
supplied by other countries The con-
traband order may almost be termed
infamous if England does nothing to
| compensate us for trying to make
Southern farmers bear her burdens
| but in any case to offset the contra
| band order we have II the greatly
| increased demand for cotton for war
purposes, CD the increased demand
for American. English and continental
/ factories that must supply the trade
formerly supplied by German mills,
together with the fact f3) that Ger
! many is lmost sure to buy and store
/ up cotton right here in America TO
| hold until sea trade is re-opened
! Even with the contraband order in
effect. therefore, twelve-cent prices are
amply justified whereas with open
seas to all Europe, cotton would like
| ~ bring 4 or / s cents.
| An able and eminent committee on
arbitration ought to be named at once
| by England and America. to make IA
| fair and lust estimate of the damage
in price per pound resulting from the
! orders in council and contra band
! order. and England should then be
required to pay this amount per pound
I producer this fall
! I confidently ~Qieve that IL Eng
/ land should change her cantraband
| rules so as to inflict corresponding
! injury upon any strong American
manufacturing. interest, some such
| settlement would be required: and
| Southern farmers should rise up and
demand that the same recognition be
given an agricultural industry as
would be given manufacturing indus
try.
The practical lesson clearly taught
by present conditions then is
6.--Farmcrs Should Hold for Twelve
Cents and Bankers Should
Help Them Hold.
or course we must be reasonable
Don't expect bankers to lend on cot
ton not stored or insured, nor ex-
pect them to lend the full market
value. Handwriting farmers OF good
character who have been depositors
in banks however win frequently be
able to borrow without such restric-
tons.
The thing to do Is for farmers in
every neighbonhood to organize,
formally or Informally. for standing
together in holding and marketing
the crop, and find out just what the
local banks VIII do. Last year 1t was
repeatedly stated by the minority Of
bankers who were willing to lend
money on cotton, that few farmers
applied for such loans. Let not that
be said this year. We must keep the
crop from being rushed to market at
present prices. and that means that
farmers must avail themselves of all
the cooperation afforded by banks
! for many owners must have advances
in order to meet pressing obligations.
And let every farmer remember this:
! II hurts prices just as much for your
neighbours erep to be rushed to mar
ket as for your own crop to be. Com
sequently we should have neighbor-
hood action everywhere. with the
stronger farmers and plantation own
crs Joining to help the weaker ones
to hold. grade. warehouse and sell to-
gethcr.
Only by the most. thoroughgoing
cooperation of all forces can we save
to the South the full quarter Of a bill
lion dollars of hard-earned wealth thar
will otherwise so into the hands OF
spectators and foreign interests. Nor
must we fail to realize that the worst
and most dangerous bear OF all, the
man we have most to dread right now.
Is not the Wall Street speculator-deytI