The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-04-10
Europe Needs New Credits.

VI should regard 1t as OF the great
est Importance that the first directors
OF such an organization should be COM
posed exclusively OF mon Of the high
est class, whose interests were with
those who desired to stabilize and i'm
prove the price OF the raw material.
THE European buyers Of cotton will
be compelled to seek credits In order
to enable them to purchase American
cotton. They an command the under
writing OF European banks with the
security Of European government
bonds, and n great corporation or this
character could make q negotiation in
which the extension Of credit for the
time sufficient to\ enable the cotton
to be manufactured and marketed as
t~extiles could be afforded. 1t is of the
greatest possible importance that these
credits should be arranged, and ar
ranged upon a basis OF such stability
that nobody could have the slightest
doubt that the credits were altogether
"a corporation Of this character
could conduct these negotiations upon
q basis that would be absolutely Sc
cure, n which would nave tho under
writing OF government bonds, while a
private person handling the cotton. as
u merchant or as n factor, eould not
make such arrangements conveniently.
MI. Harding's idea was to organize
o cotton export association with a cap
ital OF not less than $50, 900, 900.
II possible IT is suggested that sub
sertptions should be secured to the
stock OF tho proposed corporation in
every county In the South in which
cotton is grown, which Is suitable for
export. This would include generally
the states OF Tennessee, Mississippi,
Texas, Oklahoma, Northern Louisiana,
ton grown. In Alabama, Georgia and the
Carolinas 10 generally consumed by do
nestle mills.
Producers To Be Stockholders
It is Gov. Hardlng's idea to make the
proposed corporation one in which
thousands OF producers would hold
stock, He has suggested in the let
tiers no has written, that payments for
thus obviating the need of investment
OF so many millions Of actual cash taken
from circulation In the project, and as
surfing certain percentage of return Ia
stockholders even before the business
OF the proposed corporation was active
1t is his idea after the company shall
have been organized and selected Its
officers and its location, that experts In
the sale Of cotton be sent abroad e
stockholders and make banking ar,
rangements in the countries to which
the cotton is to be shipped.
He suggests that when these con,
tracts and guarantees are In hand, thu
export association would then be in
position to apply 10 the war financ,
corporation for financial aid,
Under the terms OF the Webb act
which permits combinations of firms Of
individuals for the promotion Of foreigl
trade, n number OF large corporation
are preparing to seek such aid,
other Lines Organized.
Mr., Harding pointed out that 1t wa
manifestly an impossibiltty for the wa
finance corporation to deal Individuals
with those In the cotton trade, whiei
would necessitato action upon possibly
"a, 900 separate requests for financial
assistance, but that tho proposed cot
ton export ASSOCIATION could secure thl
aid under THO eerms OF the act whlcI
became effective March 8, OF this year
That act provides for additional bonI
issues by the general government an,
under It the war finance c%orporatioI
Is authorized TO make loans to tn
amount Of ST. 900, 600, 900 TO aid expor
transactions. These loans arc to ru
for one year from the date OF an OF
fetal peace proclamation, and the wa
finance corporation is allowed five year
In which TO llauidatO thcm.
II Is this special government fun
which Gov, Harding proposes shall b
taken advantage OF by the propose
cotton export association.
He points out that every large mani
featuring industry is already SC OF
ganized that advantage may be take
at once OF this government aid. tina
the cotton mills have their organixa
tons, but that the growers Of cotto