Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1919-03-18
COTTON EXPORT
EXCHANGE IDEA
IS IN line With
SUMTER'S VIEWS
Harding's Plan Restricted to Foreign
Selling Domestic Exchange,
Too, Wanted Here

Much interest was created here to-
day by the publication in the morn
ing papers of a letter from w. P. G.
Harding, of the federal reserve bank
advocating the formation of $50 ,000,-
600 cotton exporting corporation, own
ed and operated by the cotton grow
ers of the South, and financed, in a
measure by the federal war finance
corporation. The plan was of particu.
lar interest here, because Sumter
county cotton men have been ad9ocat-
ing cotton growers exchange as the
only real solution of the cotton prob
lem for the grower and at the last
meeting here of farmers ten days age
resolutions were ordered iraWn and
forwarded to the state commissioner
of agriculture, asking that action be
taken by him to start movement for
the realization of the exchange idea.
1t was pointed out today that the
original idea here was for an ex-
change for marketing the staple in this
country as we'll as abroad, whereas
Mr.. Harding's plan provides only for
export marketing, government aid be-
ing available only for foreign selling.
The dispatch, sent out from Wash
ington, follows:
Organization of cooperative cot
ton export corporation with capitali-
zation of, perhaps, $50,000,000 was ad-
vocated by Governor W. P. G. Harding
of the federal reserve board in a let
ter to a Southern newspaper editor
This corporation organized under the
Webb act, solely for foreign trade
transactions, could be financed under
the war finance corporation act, au-
thorizing $1,O00OO0,OOO to 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 up large quantities of cash.
Mr.. Harding suggested that con-
gress of cotton producers and other
business men be held at once to dis
cuss the project. He explained that by
using Liberty Bonds these would be
held by the corporation as permanent
investments and would not be placed
on the market This would remove
any objection by government agencies
to exchange by the corporations of
stock for Liberty Bonts.
Every large manufacturing and
mining concern has a we'll organized
sales department" said the governor
in his letter. "It 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, l
believe, which has no organized 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 obtain
ing a higher price and he has no as
surance that he will get higher price
by holding. The cotton spinners have
their own organizations; those who
have cotton for sale have none. The
present situation is totally different
from that which existed at the close
of the civil war. Then the South was
devastated, it's labor demoralized, and
the great problem was one of produc-
ton. Actual cotton commanded 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 Of most European nations is nee
essarily restricted, even England can
not afford to let go of her cash with
a lavish hand in payment of goods
imported; she has to watch her ex-
change rates with a jealous eye.
France, Belgium and Italy need goods
and raw material, but they also need
a reasonable period of time in which
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