The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-03-22

perhaps s5000o,OO0 was advocated
today by Governor ". p. c. Harding:
Of the Federal Reserve Board. IN .
letter 10 i southern newspaper eGi-
tor.
This corporation, organized under
the Webb act, solely for foreign trade
transactions, could be financed TO
some extent by the war finance cor
poration under the recent act author
izing $1,000. 100000 10 exporters.
Governor Harding suggested.
In payment for the stock, Southern
cotton. producers and business men
participating in the corporation might
use liberty bonds, which they hold.
thus eliminating the necessity of ty-
ing uD large quantities Of cash.
Mr. Harding suggested that con-
gross of cotton producers, and other
business men be held at once to dis
cuss the project. He explained that
bv using liberty bonds these would
! be held by the corporation rs perna-
I nent investments and would not be
/ placed on the market. This would
remove any objection by government
~
4 tons stock for liberty bonds.
Every large manufacturing and
| mining concern has we'll organized
sales department" said the governor
! in his letter. 1T would be suicidal
for any large manufacturer to devote
his activities TO productions alone.
Many millions of people are engaged
IN the production of cotton, but OF
all our great industries it is the only
one, 7 believe. which has no organized
sales department. A farmer or 2
merchant who has cotton IN the hope
Of obtaining higher price and he
has cotton for sale must either take
/, the price offered MIN or he must hold
! his cotton in the hope OF obtaining a
higher price, and he has no assurance
that he will get q higher price by
holding. :he cotton spinners have
their own organizations: those who
have cotton for sale have none.
"The present situation is totally
different from tha. which existed at
the close of the civil war. Then the
South was devastated, its labor was
denobilized, and the great problem
was one Of production. Actual cotton
commanded a high price for severa!
years after the war; the rest of the
world was prosperous. there had
been no impairment in its purchasing
power; but today the credit OF most
/; European nations is necessarily re-
stricted. even England cannot atio: ::
| to let go of her cash with lavish
| hand in payment Of goods imported
! she has to watch her exchange rates
with jealous eye. France, Belgium
and Italy need goods ard raw ma
terial. but they also need a reason
able period Of time to pay for them.
The large manufacturing concerns
| throughout the country are preparing
/! to take advantage OF the act which
became law on April is, 1918, COM
monty known IS the Webb Act. which
permits combinations for the promo
ton Of foreign trade. Under the act
Of March 3, 1919, which provides fof
the additional bond issues by the gov
ernment, the war finance corporation
is empowered to make loans to the
extent Of one billion dollars to aid
Of one year from the date Of an Off
cial proclamation of peace, and it is
allowed five years in which to liqui-
date these loans.
For the war finance corporation
to consider applications from ten to
twenty thousand individuals and
farmers for assistance in export
transactions would be a difficult if
not Impossible proposition owing to
be involved in the consideration of
each application.
"a broad ard dependable market
for cotton is Of vital importance, not
only to the farmer. the producer Of
the staple. but to every merchant. |!
banker business and professional
man throughout the cotton belt.
I'm almost every hamlet in every
United States bonds. 1 believe that
United tSates bonds I believe that
if the movement is properly directed I
it will be possible to form a large ex-
port corporation the stock Of which
will be owned by those directly in
in the production and mark
citing Of cotton. The capital stock
Of such corporation might be in
vested in liberty bonds which would
obviate the necessity OF procuring
cash subscriptions and would at the
same time insure certain dividends
to the stockholders. The corporation
might be capitalized at $4,000, 900.
or whatever amount might be found
accessary to handle the business. The
could send experts abroad !
to negotiate sales Of cotton. to ar ]
range the terms, ard to procure the
necessary guarantees OF foreign
banks. With these contracts in hand
Oh proper security, the corporation
could apply to the war finance cor
)oration for aid. 1t should have the
power TO purchase cotton outright or
% sell it on n commission basis for
he owners If general interest could I
De aroused in the plan. certain :
proportion Of the stock could be al :
otted to each county in the cotton i
,elt so that it would be absolutely
.otton producers organization and IT'S,
:,