Pine Bluff daily graphic., 1919-03-18
BIG COTTON
 EXPORT FIRM
 IS ADVOCATED
Hardin Proposes 50 Million
 Dollar Concern.
CAN BUY STOCK WITH
 LIBERTY BONDS
Congress Will F. Called To DiS"ds> Final Plans for tIc
 Project.

Washington, March -Oreaniza- , tion of d cooperative cotton export corporation with capitalization of per ! hapS $50.0D0o0h was advocated today { by Governor w. r. G. Harding. of the i federal reserve board. in letter to d southern newspaper editor.
 i This corporation organized under i the Webb act solely for foreign trade , transactions, could be financed 10 1 some extent by the war finance cor poratiOn under the recent act author izing $l,000,000. 1000 to exporters. Gov ernor Harding suggested.
 In payment for the stock, southern cotton producers and business men participating in the corporation might 1 use Liberty bonds which they hold, thus eliminating the necessity of tying up large quantities of cash.
 Suggests Congress.
 MT. Harding suggested that con gross of cotton producers and other ] business men be held at once to dis cuss the project. He explained that 1 by using Liberty bonds, these would be held by the corporation as per manent Investments and would not be placed on the market This would remove any objection by government agencies to exchange of the corpora tion's stock for Liberty bonds.
 Every large manufacturing and mining concern has a well-organized sales department" said the governor, in his letter "It would be suicidal l for any large manufacturer to devote his activities to production alone Many millions of people are engaged in the production of cotton, but of all our great industries it is the only one. I believe which has no organ ized sales department. A farmer or a merchant who has cotton for sale must either take the price offered him or he must hold his cotton in the hope of obtaining a higher price, and he has no assurance that he will get higher price by holding. The cotton l spinners have their own OrganiZa- tions; those who have cotton for sale have none. The present situation is totally different from that which ex- isted at the close of the civil war. Then the south was devastated. it's la bor was demolished and the great problem was one of production. Ac- tual cotton commanded a high price for several years after the war; the rest of the world was prosperous. there had been no impairment in it's purchasing power; but today, the credit ot most European nations is necessarily restrict; even England cannot afford 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 and raw material, but they also need a reasonable period of time in which to pay for them.
 Manufacturers Will Act.
 "The large manufacturing concerns throughout the country are preparing to take advantage of the act which became law on April IS, 1918, com monly known as the Webb act. which permits combinations for the promo tion of foreign trade. Under the act of March 3, 1919, which provides for the additional bond issues by the gov ernment, the War Finance corpora ton is empowered to take loans to the extent of one billion dollars to aid export transactions during a pe- riOd of one year from the date of an official 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 or twenty thousand individuals and farm CTS for assistance in export transao- tions would be difficult. if not i'm possible proposition. owing to the vast amount of time which would be in volved in consideration of each appli- cation. A broad and dependable mar ket 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. Many Hold Ends.
 "In almost every hamlet in every southern state, there are holders of United States bonds. I believe thai if the movement is properly directed it will be possible to form a large export corporation, the stock of which will be owned by those directly in- [ terested in the production and mar keting of cotton. The capital stock , of such a corporation might be in vested in Liberty bonds. which would , obviate the necessity of procuring casf subscriptions and would at the sam' , time, insure certain dividends to thu stockholders The corporation migh be capitalized at fifty million dollars t or whatever amount might be fount necessary to handle the business. Tn.
 tContlnued on page four.l