The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-11-19
DEMANDS CHEAPER
FEDERAL LOANS
ON COTTON CROP
President Of Texas Farmers
League Alleges COIIuSiOn to
Keep Foreign Exchange Far
Below Par.


-
Resolutions demanding that the heads
OF the federal reserve banking system
| order their banks 10 loan money to the
cotton farmers at as easy rates OF in
/ terest as given bankers, that effort
he made 60 stabilize the rates Of eN-
change, and declaring that the present
depreciation in foreign exchange IS duo
to colluslon between the bankers OF
the East and the masters Of the Euro
peap money mArts, we're introduced by
n. \. Shaw, Of TeNarkanR Tex at the
Tuesday night session Of the annual
convention OF the National Farmers
Union at the Chamber of Commerce.
IL iS considered likely that the resolu-
tons VIII be adopted by the convention
before the conclusion Of the Wednes-
day meeting, II was stated Wednesday
morning that they would be submitted
to vote during Wednesday afternoon.
Mr., shaw. who Is one OF the largest
cotton planters In Texas, president OF
the Farmers League Of Texas, a bank
president and pioneer member OF the
National Farmers Union, declared that
the present wide difference in the mon-
cy rates OF this and European coun-
tries SIS now furnishing the cotton
planter from S25 to SIS bale"
This statement was made In a dec
laratlon introducing the resolutions.
which Mr., Shaw repeated to The News
Scimitar Wednesday morning. The orig
inal statement was made in executive
session, from which reporters were
barred.
Unfairness Proven.
Other accusations alleging unfairness
to the cotton farmers Of the South by
the controllers OF American credit were
made by MIR. Shaw, which included an
attack on w, p. G. Harding, governor
Of the federal reserve board. for his
statement, AS quoted by the Associated
Press, that banks should not be used
as medium TO enable the owner OF
| cotton to withhold II entirely from the
| market with the view OF forcing the
| prices TO unreasonable levels"
THESE remarks when applied 70 tho
| producer are without foundation" said
| Mr.. shaw "for II is a fact that the
| farmers have not and are not holding
cotton this fail, IL has moved with
more than ordinary freedom from their
wagons And there N no disputing the
fact that the splnners and the buyers
have eagerly usedt this dietum nf the
governor OF the federal reserve bSextkH
to continue to hammer the market
down, for II cannot be construed In any
other way than that In his opinion the
present price OF cotton Is sufficiently
high.
Opening his statement, Mr.. Shaw
said that the annual break In cotton
at the same time Of the year Is not
accidental, not coincidence OF cir
cumstances. but result OF concerted
action OF the purchasers and spinners
OF raw cotton" There could hava
been no more unfortunate utterance
given to the public" than the words OF
Gov. Hardin" o"oted above, he said,
Planters Suffer.
This IL not the only time officials Of
the government during the days Of our
cotton marketing have made assertions
that were extremely bearish and that
did initiate greatly against the cotton
producer" continued Mr. Shaw ION
oct. lS, last wear, u was the Page COM
mittee and the Baruchian policy that
cost the farmers OF the cotton states
more than $50 a bale
Relative to what he called the failure
of the federal reserve banks 20 play
fair" with the cotton farmer In the mat
ter OF credit Mr.. Shaw said with
reference 20 MIR IIardinE's assertion
that S26 per bale Is not sufficient mar
gin, | assert that the cotton farmers
have never ask ed a loan from his local
banker for n less margin than $50 per
bale, The farmers have right to de-
clare that the federal reserve bank is
not playing fair with them when they
are lending money at Az per cent on
securities that are not as stable az the
farmers bale In the warehouse. while
the farmer cannot borrow money on
his warehouse bale for less than eight
per cent"
Here Mr., Shaw made the statement
already quoted alleging collusion be-
tween Eastern bankers OF this country
ard European bankers to dcpreciate the
European exchange rate, declaring fir-
ther! "Those who control the money
bags Of the world loaned their money
lnvlshly to these same foreign countries
when the fortunes Of war were against
them And now with peace assured
this difference between foreign ex-
change and United States exchange Ia
simply a manipulation and II the fed-
eral reserve bank and our Southern con-
gressmen would he game enough to de-
mand relief 1t would come. And IL they
do not the Southern cotton grower
should be courageous enough In the :
next election to send mon to repFe-
sent them In congress who viii make
a fight for fair play for the farmer"