The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-08-31
PLENTY OF MONEY
TO LEND ON COTTON
BANKS CAN GET 1T AT LOW RATE
AND AID PRODUCER.
Letter Signed by D. R COker and
Others Contains Good Advice
to Farmers.

LeCCeT SlSn0Q ny De hs OOA0A anu
Others Contains Good Advice
to Farmers.
News and Courier.
There is plenty of money to finance
the holding of cotton by Southern pro-
ducers.
This money can be had by tae banks
at low rates of interest, and all of them
can probably afford to lend it on cotton
at not above per cent.
If cotton is marketed as fast as it is
gathered the market may readily be-
come demoralized and the price be de-
pressed to below the cost of produc-
ton.
If cotton is marketed intelligently,
and if enough of it is held off the mar
ket until tie demand for it arises,
''the crop should bring price that will
allow the producer a fair living after
paying the cost of production"
Bankers, merchants and farmers
must act together if the prosperity of
the South is to be promoted.
These, in brief, are some of the con-
clusions suggested in an "open letter
to the banking, mercantile and agricul-
tural interests of North and South
Carolina" published below. The let
ter is signed by Mr.. D. R. Coker of
Hartsville, S. c.; by Col. John F. Bru-
ton of Wilson, N. c., and Mr.. M. F. H.
Gouverneur of Wilmington, N. c.
These gentlemen are all members of
the Reserve bank of Richmond. They
are thoroughly familiar with condi-
tions relating to the marketing of cot
ton. In this State Mr.. Coker's views,
especially on matter of this sort,
will carry great weight.
The F'open letter." addressed as stat
ed, is as follows:
On August the Federa1 Reserve
bank of Richmond published its circu-
lar No. %, addressed to member banks,
which gave detailed suggestions with
reference to loans on cotton as col
lateral, and which we think every one
interested in cotton should read. We
are asking that it be published in con-
nection with this letter.
Tie federal reserve board at Wash
ington and the Southern federal re-
serve banks are all thoroughly awake
to the necessities of the situation and
are prepared to take care of cotton in
such way that it will not be neces-
sary to force the coming crop upon the
market regardless of price. To accom-
plish this, however, it will be neces-
sary for bankers, farmers and mer-
chants to cooperate, and by this we
mean they should counsel with each
other and pull together. If the mer-
chants and farmers are Indifferent to
the fact that there is plentiful sup
ply of money available for carrying
properly wacehoused cotton, and if the
member banks do not furnish the
necessary facilities for loans and do
not encourage their customers to mar
ket tie crop intelligently, the efforts
of the federal board and the Southern
reserve banks will amount to little,
and we may see the price of cotton un-
necessarily depressed.
The situation is one which demands
the very best thought and most patri-
otic efforts of all concerned, not in
behalf of any one class alone, but for
the common good. 1t would be selfish
for the banks to take advantage of t1e
situation and hold money rates above
a figure which will give the producer a
fair prospect of living profit in hold
ing his cotton. Such an attitude can
not be justified at present, as money is
both plentiful and available. On the
other hand, it would be equally unfair
for the producer to decline to put his
cotton in safe storage whereby it can
be used to raise money With which to
pay merchants and bankers for ad-
vancements already made. The busi-
ness men Of every Southern town
should see to it that safe and ade-
quate storage room to take care of
the local cotton is promptly available.
MhAre nrnnerlv Marehoused and in