New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-26
WILSON URGES
AID ON COTTON
Hopes Southern Bankers
Will Not Seek Heavy
Profits on Loans.


birmingham. Ala, Aug. 25.--Hope
that the bankers of the South will con
tent themselves with proht NOT
more than ! or per cent above the
rate which they themselves pay, was
expressed by President Wilson IN
letter TO W. p. G.. Harding, of the Fed
eral Reserve Board. which Mr.. Harding
read 10 large number of business
men and fnanciers here tonight:
"What interests me most" the Presl-
dent wrote. "is this: 1t is evident
from what YOU tell me that the coun,
try banks with whom the farmer and
other producers directly deal can gei
money at from TO Az per cent, ana
that the question whether the benent
of this advantageous rate is 70 De eH-
tended to the farmer is IN their hahuS'
at is inconceivable to me that those
who are responsible for dealing direct
" with the producers OF the country
should be willing to jeopardlze the
prosperity of the country itself by re-
fusinp to share with the producer the
beneficial rates now obtainable Tor
money loans. | think that We can con
fdently expect that the banks IN the
cotton states and in the agricultural
regions generally will content them
selves with rate not more than / OF
2 per cent above the rate which they
themselves pay.
a hone that the facts which you
have stated to me will become gen.
orally known among the producers OF
the country, so that they may 1eel
themselves free to exact OF the banks
with which they deal what they un-
doubtedly have right TO expect.
Following the announcement by Sec
L al rNn
$50 900 900 in the Southern reserve
banks. if necessary, to finance the
warehousing of cotton. the PresiC .nts
comments on the profits of bankers
were regarded as significant.
Cotton men were interested in the
suggestion of Mr. Harding, that Ger
many might enter the market, buy up
cotton, and store it here until the end
of the war. so that she would not
have to pay the high prices which may
then prevail.
mo one has ever accused the Ger
mans Of being lacking in farslghted-
ness" said Mr.. Harding. They are
already looking forward to what Will
happen when peace is restored, and
that they will make a supreme effort
to recover their lost trade with other
nations cannot be doubted. Is 1t reason
able to believe that they would look
with complacency on the absolute con-
troll of the cotton market by the mills
of England and America, permitting
them to secure their supplies of cot
ton at very low prices, and defer
their own purchases until after peace
is made and take the chances of Sc
curing then their own stocks at much
higher prices? Is 1t not reasonable
to believe that they will arrange to
buy cotton as the spnners of other
cations buy II, and ca they not easily
make arrangements TO have their pur-
chases of cotton stored in this coun-
try for their account until they can
transport il TO their own shores?
"The present crop can be handled
successfully only along economic lines,
and if we are really suffering from
an overproduction of cotton, the true
remedy to be applied is curtailment Of
production. Experience has shown
that the farmer is not impressed in
the spring of the year by figures show
ING a large amount of cotton in sight
unless he himself owns some of this
cotton. If the banks and merchants
will carry cotton for farmers this fall,
the advances that they Will make
should prevent a repetition OF the