Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-11-04
The Georgia Cotton Bank.
AUNCHED under circumstances of the

| U AUNCHED under circumstances of the
most promising encouragement, the
organization of the proposed Georgia
Cotton Bank and Trust Corporation appears
| to be going forward rapidly, with fresh stock
! subscriptions coming daily to Governor Dor
sey, who took the leadership in the move
ment
| The Governor states that he values es-
| pecally the assurances of approval and CO.
| operation received from bankers, showing
that their view Of the States agricultural in
terests is broad and liberal, and that they are
not disposed to resent the entrance into the
banking business of bank to be owned by
the farmers and operated primarily in their
interest.
The Federal Reserve Bank of Atlanta,
which is one of twelve located at strategic
points over the country, is a great reservoir
of credit to be employed in carrying on the
business of the community This reservoir
of credit is not limited, but is capable of ex-
pansion to any point necessary for the con-
duct of business. Banks are the pipe lines
connecting the communitys business with
the reservoir. National banks are required
to be; state banks are invited and urged to
be.
Georgia farmers and those of other states
in the cotton belt, generally speaking, are
not enjoying the benefits of this unlimited
reservoir of credit to anything like the full
extent contemplated by the trainers of the
simple reason that comparatively few state
| banks have connected themselves like pipes
| to the reservoir, by joining as members of
the Federal Reserve Bank.
national bank affords direct connection
| between its customers and the reservoir. So
also does state bank--provided it is a mem
! Der of the Federal Reserve Bank. But a.
state bank not a member of the system can
| only afford its customers an indirect con-
nection with the credit reservoir, and in
| direct dealings increase the interest rates it's
| customers must pay.
| The Georgia Cotton Bank and Trust Cor
| poratlon is to be a member of the Federal
reserve Bank, It's plan of organization it's
| charter and bylaws, have been examined by
| Chairman McCOrd and Governor Wellborn
| the heads of the Federal Reserve Bank of
Atlanta, and they have pronounced it eligible
| 20 membership. 1t will make ITSELF first of
| all, direct connection between it's customers
| and the great unlimited reservoir of credit
| standing here at the disposal of the farmers
| ot Georgia and neighboring states
by this membership and direct connection
utilizing to the fullest extent of it's resources
| the facilities afforded by the Federal Reserve
Bank, the Georgia Cotton Bank and Trust
. Corporation will be able to give the farmers
OF Georgia an impressive demonstration of
! what their government is prepared to do for
Ihem IN the way of financing their products
| especially their cotton.
| Such demonstration ought to result, and
| probably will result, in a general and insis-
tent demand on the part of farmers that their
! local state banks with which they do business
shall join members Of the Federal Reserve
! Bank. Hundreds of state banks in Georgia
. are not members Every one of them ought
! to be direct pipeline connection between it's
| customers and the reservoir of credit here in