The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-09-01
GOV. HARDING
FOR ACTION
Approves Action Taken BY
Farmers Of South Carolina
WIRE TO MIR.
WANNAMAKER
WANNAMAKER
Says Federal Reserve Board
Prepared I'd Render All Rea
sonable Assistance

sonable Assistance
Columbia, Aug. 26.--F Formation OF
the Cotton Export Cooperation by the |
American Cotton Association is warm
lyA approved by Gov. w. p. g. Earding
OF, the Federal Reserve Board, In a
telegram sent by him to j. Skottowe
lWannainaker president of the Amer
ican Cotton association
The telegram from Governor Hard
ling to Mr., Wannaniakers which was
made public today, follows:
S,sWannamaker, president of the
IAmerican Cotton Association, Liberty
National Bank building, Columbia, s.
tGt:. Answering, your telegram. would
state that the, policy of the Federal
Reserve Bsnlts for many months past
has. been so shaped as to enable them
TO render all reasonable assistance to
fmsmber banks In facilitating the pro
cesses Of production and orderly dis
ltributioh of essential commodities, in
kcluding the products OF mines and fac
ttories as well as farms.
Ii s.rhe crop movements a. seasonal
i one, and in this early stage requires
Iarg,stadditional credits. Federal Re-
serve banks are prepared to meet
all Legitimate demands made upon
them by member banks for moving
1.-THE crops, but your lattention is called
j to the fact that under the law Fed
eral Reserve Banks cannot make di-
rect loans. They can only rediscount
4 for member banks, which institutions
lr,. n. 4
4 lprescribed by law upon their loans.
i Growers and distributors of agri-
cultural products usually have no
broad financial connections and are
4 Obliged to depend for accommodation
upon local banks, consequently, not
lwithstanding the desire to respond
j fully to the needs OF farmer, mem
ber banks frequently find ii impos-
lsible to extend all Recommendations
desired Complaints are made by wool
! growers and wheat farmers as well as
y NY sc0tt ton ineNsef laelS af ready m ar
fkets. and Of insufficient transportation
4 facilities.
4 .,rhe board urges coperation be-
tween banks and producers In ordes
! that the burden of carrying crops
kawaitlng transportation to market
I may be as evenly distributed as pos
sible. .r...,.
3 I'm actual sales and full returns
LIT is thought that the most pressing
needs of farmers can be provided for
without exhausting the credit facili-
ties OF local banks, which have their
legal limitations. / had an interview
yesterday with the minister of Czecho-
Slovakia, who stated that the seasonal
needs OF mills In his country alone
q for cotton amount TO seven hundred
thousand bales, but owing TO Geterior-
ation in exchange and inability to ship
a gold, 1t was impossible for the mills
4 to take anything like this amount OF
n cotton unless nine months credit are
A provided. He stated that the mills In
4 his country will be able to pay for
raw cotton furnished them as soon as
manufactured and sold, and expressed
the opinion that q syndicate OF mills
and banks in his country backed by.
4 q guarantees of his government could
give satisfactory assurance OF payment
az the end OF the time specified
4 81 anticipated the present sIuatIon
in the year Of 1919, when 4 urged the
formation OF a large cotton export
corporation, Since then congress has
q slegislated, passing the Edge act, under
which these corporations can be
formed under federal charter, Cen
4 trail Europe mas the spinning and
weaving capacity, the mills and the
labor, but lacks raw material The
South has the raw cotton If a cor
Eporation could be formed under the
8 Edge act taking cotton in payment
: for stock there could be opportunity
> for direct dealing between Southern
1prodpcers and, European mills. A
4 movement of this kind would put new
llife in the market. for II would se.mu-
late buying by domestic and British
3 mills The degree Of risk appears TO
ldepend upon the stability of govern.
1ments in Central Europe and ii capt.
tai which Is not interested In cotton
growing does not care to assume this
risk is must be borne by producers
themselves. II anything Is TO be done
do not think the cotton situation can
be improved by calamity talk, which
lean only lead tc further depression.
but believe IL can be saved If there
Il is subjected q getrtogether spirit Oft
courage, self-raliance and determina-
ftion followedthy prompt action along
tpracttcal and constructive ;iles. s.. !.
4 People who help themselves are
assured of the most dependable and
/ effective help, y
Courage breeds confidence and
nothing succeeds like success
7. (Signed) "W, p. G. Harding"