The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-10-09

RESERVE BANKERS
CONSIDER PLEAS
FOR MORE CREDIT
W. P. G. Harding Urges For
nation Of Cotton Export
Company, Declaring Ger
many Needs 1000. 600.


BIRMINGHAM. Ala, Oct. 9.---Com-
pletion of plans for the installation
Of additional vaults at the BirmingS
ham branch of the federal reserve
bank. SO 1t may perform the work
of a subtreasury, action upon re-
quests of Georgia bankers for more
liberal line of credit to cotton plant
ers, and consideration of the pro-
posal to raise the redisceunt rate
from to per cent, were among
matters to be taken up to day by the
board of directors of the Atlanta
federal reserve district which Is
holding a two-day meeting here.
t The proposal to raise the redis-
count rate was referred to a com
mittee at the meeting Yesterday. Fin.
al action upon 1t is to be taken at a
meeting of the federal reserve board
To- be held In washington in the near
future
NJ Nv. n. G Harding governor ofRtfsa
federal reserve board, announced last
night the board had decided to c6fl-
fer upon the locaf institution the
powers and duties OF subtreasury
that 1t may be In position to take
care of increased business in this
section.
In his statement Mr.. Harding also
declared that Southern cotton farm
ers can dispose of 2,O00.000 bales of
cotton to German manufacturers and
suggested that an export company be
formed to transport the staple.
The movement to hold cotton for
40 cents a pound, sponsored by the
American Cotton association. was
discussed yesterday.
i. B. Jackson. director of the Geor-
gia Bureau of Markets. who said he
was speaking for ninety per cent of
the banks in his own state. made a
Flea before the board for o more
liberal extension of credit to South
ern planters claiming they need the
n.ony to pay off debts incurred while
producing the present cotton crop,
and that the majority of planters
seeking money are not doing so with
the intent to finance themselves
while they were holding cotton off
the market.
Chsmpioning the export cotton as
sociation idea last night. Gov. Hard
ing declared he had been informed
by a commercial agent of the Ger
man government In the United States
that Germany alone is in need of
100000 bales of cotton, has the mills
with which to spin the cotton and
sworkmen to operate the mills, but
that its money is SO deprecated 1t
can not pay for the cotton in cash.
Under a we'll organized cotton ex-
port organization" Gov. Harding
stated, I'VE could ship our raw cot
ton to Germany under an adequate
guaranty by the German banks and
the German government. The cotton
would be manufactured into cloth
and the manufactured products dis
posed of to nations whose currency
has not deprecated, and in the end
the Germans could pay US for our
cotton in good American dollars.
This system would have to extend
over period Of nine months to allow
for the shipment of the cotton to
Europe, its manufacture and the sale
Of the finished product.
Tn my opinion the first 10000
bales of cotton shipped, abroad under
this system and with this guaranty
would have an instantaneous effect
In stimulating the entire cotton sit
uation. To my mind 1t Is the great
est opportunity in the South today.
TT lis up to the South to do this
thing for itself and with its own
money. The North can not do 1t for
the South. The North has money,
but 1t likewise has use for all the
money in it's possession. 1t is the
duty and the opportunity of the
Southern people to- do this for them
selves"