Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-03-14
HARDING URGES FARMERS
TO DIVERSITY THEIR CROPS
Board Head Points
Out Danger of Relying
Upon Cotton


BIRMINGHAM, Ala, March IL
Southern farmers were warned not to
put all their eggs in one basket by rely
ing on cotton as their only crop in a
speech last night by w. p. G. Harding,
of the federal reserve board, before the
Birmingham chamber of commerce.
81 am told" said Mr.. Harding, that
there are farmers in Alabama and per-
haps in all southern states who have
never grown a stalk of corn. Let the
farmers realize, and l urge upon mer-
chants and bankers the Importance of
persuading them that an increased acre
age in cotton will be looked upon as an
argument in favor of lower prices for
the remainder of the crop now being
held although 1t is by no means GER
tain that a large acreage would yield
a larger crop than a smaller ana better
cultivated area.
LET us suppose things turn out this
year as some optimists predict. Sup
nose peace should be restored and there
springs up a greatly increased demand
for cotton, Under such conditions a
large crop would of course sell for
great deal of money, but with the ex-
perience of 1910 and 1911 before US,
is there any reason to doubt that a
moderate crop would sell for still more!
On the other hand suppose the war con-
tinues; suppose unhappily this country
should become involved-and remember
that in time of stress when 1t comes
to . choice between something to eat
and something to wear, food must De
provided at any cost, while new cloths
can wait-then 1 ask, would we not be
far better off with moderate supply
of cotton and an abundance or food
supplies?
MUST ACT NOW.
WHY scatter high priced fertilizer
over a large field when 1t would be
more effective concentrated on small
er? These matters must be determined
now. A month hence will be too late
Let the farmers, the merchants and the
bankers of the south take counsel to-
gether and let the newspapers, and those
published at the county seats particular
ly. advocate in every issue for the next
six weeks, and with all their force and
power the doctrine of diversification,
and let them point out the dangers Oh
the one-crop system"
Mr.. Harding said that if the war con-
tinues six months longer the purchas-
ing power of Europe will be seriously
impaired and that prices in the coun-
tries at war already have enormously
advanced He declared that the cot
ton exchanges are not eleemosynary in
stitutions, but are operated by those
who desire to gain. Market opinions,
he said vary with new conditions and
the fact is realized that they depend
primarily upon the supply. For the
next three months at least, Mr.. Harding
said, the estimates of supply will be
based upon the new crop acreage.
What this acreage will be-" he said
"in America depends upon the farmers
of the south Should they decide during
the next few weeks to produce their
foodstuffs at home and to plant cot
ton as a money crop, their position will
be secure. but If, disregarding all warn
ings and portents of the times, they
decide upon a policy of all cotton, they
will be taking a tremendous risk which
no prudent business man would care
to assume.
+ BANKS CAN CARRY LOANS.
Mr.. Harding said the ability and dis
position of the banks of the United
States to take care of the Legitimate
wants of their customers as well as to
carry we'll secured loans for Others
has never been greater than at present.
All paper under discount with federal
reserve banks March s, Mr.. Harding
said. amounted to $51 100000 against
total deposits in these institutions of
$454, 761, 900.
'In all sections of the country" he
continued, first class commercial paper
is sought for at abnormally low rates
and l may say that for several months
past the chief concern of the federal
reserve board over the monetary situa-
ton in this country for the immediate
future has been that the unusually low
rates prevailing in financial centers
might lead to an unwise initiation of
credits"
Mr.. Harding said there is every reason
to believe that the export of cotton will
continue on about the present scale dur
ing the spring and summer and that
there is little prospect of an unwieldly
surplus of the present crop being car
ried over into next season.