The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-21
WAREHOUSE ABALE'
NEW COTTON SLOGAN
Way Open Now for Southern
Planters to Borrow From
Federal Reserve.
CAN GET z CENTS A POUND

Owing to the wal this year finds tho
South in almost as bad a situation az
in 1914 in 50 far as its cotton crop 10
concerned. For this reason the South
ern growers and those Interested In their
welfare a devised a new campaign
to prevent the hardships which must re-
suit IL the planters are unable to find a
market for their staple. Last year the
slogan was Buy a Bale This year IL
has changed to Warehouse a Bale
lis new slogan IL being given publicity
IN a campaign that Is beginning to
spread over the entire country.
warehouse a Bale" means that this
winter when a Southern grower needs
money for the necessities of life he will
not be forced to sell his crop at the
prevailing market prices which allow
Ettle or no profit. Instead, he will put
the necessary numbe of bales in a
standard warehouse. get q receipt for
them, and then borrow seven cents a
pound from the United States with his
cotton as security.
The plan. which has been adopted by
the Federal Reserve Board. was made
public here yesterday by Thomas Berch-
mans Smith, secretary of the Birming-
ham Ledger OF Birmingham, Ala. who
is In this city on a business trip. 1t was
the birmingham Ledger which began
the "Buy a Bale movement a year ago
and made 1t possible for the small
southern farmer whose livelihood de-
pended on his selling the one or two
bales from his acres to realize on his
crop in spite of the fact that there was
no market.
THE South Is somewhat better or this
Nnn r thar last ~ anAl NJ C.-lsA sst-.a A
is still out Of the foreign market and II
Is necessary to hold as much of the crop
as possible. Our plan is to ave the
farmer keep all he in his own gin
mouse, and II he must reahze on II, to
give 1t as collateral for a loan. which
will still make 1t possible for him to
hold 1t against the higher price hat
must come sooner or later. II will save
him from the loss OF profits that are his
BY right.
The Federal Reserve Banks and the
banks Of the South have agreed to help.
william II. c. Harding OF the Federal
Reserve Board. who is known as one
of the best informed men on the cotton
industry in the United States, spoke in
Birmingham a few days ago before a
convention of bankers an merchants.
He outlined the plans of the board and
announced that il would deposit money
In the Federal banks for loans to grow
ers at a low rate OF interest. This money
will also be made available TO the state
and other banks to make similar loans.
Many millions will probably be needed.
but Mr.. Harding promises that IL will be
forthcoming.
Ills ak made a profound impression
in the South. He is n Birmingham man
and for nan years was president of
the First National Bank OF birmingham.
He is known there as a broad minded
and far seeing banker.
THE storR re charges and other costs
will be as reasonable as possible. In
some cases the charge for storing a bale
will amount to only rs cents a month In
a standard warehouse, and the handling
charges will be as low a. 10 cents. The
agreed loan value OF 7 cents is only 3
cents lower than the present market
price.
There is one phase of the situation
that IL OF vital interest, especially to the
business men in the East. The plan to
make conditions better in the South will
counteract the effects OF what is being
done by the agltators who are complain
ing that the munitions men of the East
are protected in their foreign market
! while the cotton growers are not. Some
OF these ag!tstors a been busy re-
Gently and rave brought about some
conditions Of dissatisfaction on the part
Of the Southerner, who sees the exporter
in New York sending goods abroad while
he cannot save himself.
1T is not the South that Is clamor-
Ing. 1t Is n group OF political dema-
gogues and self-seekers. These men are
trying to make capital out of present
unavoidable conditions. For that rea-
son ] am trying to get the people of the
East interested in this plan. II the peo-
Pile of the South see that il is favored
and that the plight of the South meets
with sympathy II will undo all OF the
potential harm Of the %agitators. Moth
ing that | know OF can ave a more
steadying effect tina the work of the
Federal Reserve Board and Mr.. Hard
ing, The South, let me say. has full
confidence that the Administration will
do all it can to help In the present diff
Guilty"
| The W. themselves prohted by the
lesson of 1914. and even without the
Warehouse a Bale movement they are
in a better position than before. The
| crop OF cotton this year Is between 20
and 25 per cent. less han the crop of
last year. and the land that was not
planted in cotton was used for corn and
f~oodstuffs. The amount OF the latter
crops this year is the greatest in the
history of the South.
Mr.. Smith will try to interest North
ern business men In the Warehouse n
Bale" campaign and TO get their moral
backing for it, Circular letters will
be sent TO all of the newspapers OF the
country. MS well as to business and in
dustrial organizations. Practically all
of the Southern newspapers have Joined
in the work. n II is expected that In
a short time an organization similar to
the one that pushed the Buy a Bale
campaign to success last year will be In