Pine Bluff daily graphic., 1915-09-29
HEAD 'Df FARMERS ]
 BELIEVES LOTT0N' ]. /. 7: r. ]. T ITO. REACH 20 CTS,
,ss(Continued from Page 1.)

SlIiSie crop qua that JOSS IS not palu
 by the purchaser, but it is paid by every grower of bale ol cotton. It has been, estimated that the average country damage to cotton is at least $2 q bale. By better handling of the crop our, state alone could save in gexcess of ,$1, 1,500,OOO a year. Help Small Producer.
 "Ass1I see. our, marketing proposi- tions the problem is to help the small producers4 The large producer is a man of, means and credit and standing.. ,.4sHe has: his collateral in large blocks, and is able to help him. self. But. the price he receives for his cotton is dictated to a great ex- tent by the distress cotton that is thrown on the. market.
 7s'It looks to me as though our problem was to so market our cot ton that it could be- placed on the market for. sale at the most advan- tageous time, and that the small farmer with notes maturing in Octo- Der and November would not be- com pelled to sell his cotton at any price it.:Yould bring to. meet those obliga- tions. {{' ist.:.fis 3...ief k@s#ssss
 ,, Permit me. to speak frankly to you: The small faFmer as a rule is a. man of. poor credit. When he goes to the merchant, banker or others and tborroWs money he simply thinks he has borrowed the money. He does not realize: his obligation to pay the debt when it is due. Y < [ a~ Arkansas Farmer No Pauper. ( <. 1T do not believe that the Arkah- sas farmer is a pauper or an asker of aims, or, asks for anything else except. sans equal chance with others; and believe that the small farmer, to q larsezsextent, has to receive his acc olnino odations from the small bank or. the merchant. And I believe that itbHse banks are willing and able to .ta ke care. of; any reasonable demands made upon them The farmer must do. his part. His cotton will have to be- Warehonsed in a responsible ',are- house whefe tl1e loaner can know That when he presents the warehouse certificate. he can secure the cotton. The loaner must also know the weight of the bale, the grade of the bale and that the cotton is not mort gagged In short, when he loans on a bale of cotton he must know that he has a clear title to the cotton. The cotton must be insured with a possible loss payable to the loaner. .As"We are fortunate in that the last session of the Iegisiatufe passed "a very comprehensive Warehouse law and. makes the loannga aon Acotton warehouse. certificates much simpler than, heretofore. .~
 a '"'You hear the. statement, I have money in the bank That, is not true. When you deposit in a bank % you have no money there. The bank owes you-they do, mot promise to return the identical money you de- posit. A very few of the deposits are made in money. Checks, which rep resent money, are deposited, drafts on other cities, and items of like nature. While all of these credits immediately on deposit are subject to check, they are not by any means all loanable funds. Checks on other cities have to be collected, drafts forwarded to their destination and collected; and only such portion of the deposits as have been> turned in to money are lOanable funds.s. v Tr
 @'L0anable Funds." .s
 From these sO-called 1Oanable funds,' or actual money and actual credits in other banks, must, be de- .ducted the. legal reserve which banks are required to- carry. against the deposits. All good banks, nearly all the year, carry a reserve scensidera- ply in excess of that required .,y law.
 This brings us to an interesting questionable question of what is a correct and proper rate on loan. I realize that l am touching on very delicate subject; but I am talking to Arkansas men about Arkansas con ditions, and am going to talk Ar kansas rates.'s & "I know you gentlemen when you deal with d bank expect to make a profit out of the deal; and you ex- pect the bank to make a reasonable profit out of the business they trans act for you. It has been truthfully said that on any business transaction