The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-04-23
The Memphis
Convention
(Memphis commercpial-Appeal, April


There was n representative meet
/ in. OF cotton men in the city Of Mem
pnis Yesterday Al that meeting Sen
ator Owen most clearly stated what
could be done by Il cotton export cor
porarion. Gov Harding, following
: Senator Owen, gave the convention q
clear insight into international finance
land into other things which have been
rctarding influences against exports
OF all sorts.
Many predicted at the close oil the
war that cotton would go TO an cnor-
nous price and that there would be
q great big demand. There was Il
decline in price and decline in de-
mand.
We thought that England and
France and spinneIs in other coun-
tries would immediately begin TO
take action. We did not realize that
the first necessity was 10 get food
over 10 the people Of these countries.
Then there were calls thai the Amer
lean troops be brought home. These
two demands crowded cotton out OF
ships.
! England and France today are
seeking just as few imports is pos
sible, if they have TO pay cash down.
One reason is that their money IS
cheap. II they buy Il bale Of cotton
for $4,000 they have TO put in ten
per cent more Of the number Oh
pounds sterlins OF francs TO get that
| cotton. Money Will continue cheap
or low in its purchasing power IN
France and britain when things are
10 be bought in the United states
unit! these countries are able to sci!
US something in return.
IN order then to secure an imme-
diate market for our cotton in Eu-
rope we have got 10 extend credit.
England and France and other coun-
tries may noJ nave the ready money
or il they have it the rate Of eS-
change against them is high.
Pu1 their credit is good.
! So il we can sell these countries
cotton on long time credit they
will Immediately come into the mar
let. buy the cotton. spin il and when
The bills are due pay these bills with
the money OF with the credit they
have already secured from the man
ufactured product.
Having the bulk Of the gold Of the
world. the United States has got TO
carry the responsibility OF that gold
and. that IS, 70 extend credit.
4 nation having gold can afford to
give credit TO that naticn that has
not any gold. but may have products
to exchange.
Therefore. it comes down to the
point now that the South, in order to
facilitate the sale Of its cotton. must
form an association to finance this
cotton. This corporation can be made
tp OF stockholders who are planters
merchants, bankers. factors and buy
ers They can put Liberty bonds into
the corporation and at least be as
sured Of this interest. They can be
assured OF :; reasonable return upon
the investment but the whole South
will then have "a broader market and
q more steady market and those
things are now needed.
Europe is just ia this position:
Imagine a farmer with good land,
we'll stocked and on which there are
good improvements. He has q disas-
trous fire; his barn burns. his house
burns and his cattle were destroyed
in the burning barn. He has no
ready money. He cannot go along
without credit He goes TO bank or
he goes 10 q merchant. He has q
fine farm, he has been industrious
and has paid his debts. He, there
fore, gets an advance with the prom
isa to pay in one year or two years:
In these two years he recoups and
pays out Without the credit he
could not go on except in Il ha]:-starv-
ing way.
England, France and all the allied
countries have been devastated by
this war. but the land is still there
and the people with capacity to WORK
are there Many Of the mills are ready
10 start. but in order to have some
thing to work upon they must i'm
port raw materials from other coun-
tries. Give them these raw materials
and in little while they will be able
10 paw back. In the meantime their
own government will guarantee g
large part of their debt.
If this cotton export corporation IS
formed with a large capital it can
discount the credit notes of buyers
in Europe: it can also pledge certain
securities it has with war finance cor
porations and get more credit. This
corporation operating with the war
finance corporation can, therefore.
extend a credit on export cotton for
more than the usual length Of time
and can be guaranteed Of 4 payment
and. in the meantime. can MAKE
money on the interest earned by the
credit extended.
1t is n simple proposition hut il
requires the confidence and support
Of large representative body Of
Southern farmers, merchants, factors,
bankers. buyers and sellers Of cot
ton.
The South is now in 4 position
largely to finance itself and we must
do it. We have been able to stand
up during the last year and hold our