New-York tribune., 1920-10-22
Bankers to Aid
armers in
Selling Crops
Propose, as First Step, Fl
nancing of Corporation
to- Export Cotton; Credit
for All Those in Need
SIP, 900, ,OOOto BackPlan
Say Products Will Be Liq-
Undated in Orderly Way;
Business Declared Sound
From a stag Correspondent


WASHINGTON, Oct. 21.--The first
pledges of constructive aid for the
farmer VINO is harassed by price in
flatiOn came out Of the capital to-day
A group of Southern bankers, in at
tendance as delegates to the forty
sixth annual convention Of the Ameri-
can Bankers Association, laughed a
project for a financing corporation to
facilitate the flow of cotton overseas.
Moreover, the members of the ma
acknowledging the essential character
of agriculture, resolved to make credit
available for the orderly marketing of
tho crop
In appeals to the Federal Reserve
Board and the Treasury for aid in the
critical situation the farmers found
NV encouragement Officials at
Washington declined to support any
ferred the producers of farm products
to the bankers of the country for cs-
sential credits.
The action Of the national bank sec
ton was accompanied with blanket
approval of the Reserve Board policy
Of dcfation. and was in no way in
tended to indicate disscnsion. How
ever, the Southern bankers who spon-
poraton with nominal capital of
$12,000000 and paid in capital of
Sc 100000 under the terms of the Edge
act. made no secret of their dissats-
faction over the collanse Of the price
of the staple in the open markctplace
Will Aid Present Crop
Robert L. Maddox, president Of the
Atlanta National Bank and former head
of the American Bankers Association
resided over a meeting of bankers
ficm all the cotton states at the New
Willard Hotel this afternoon After
the suggestion for the formation of an
export bank had been approved by rep
resentative money lenders of the South
an executive committee Immediately
set to work on plans for setting ma
chncry in motion in time to be help
fUl in connection with the present
crop.
at is not at all intended to have
this export banking corporation" Mr.
Maddox said, in his report "cpnfined
to the financing of cotton exports, but
for the immediate present that proves
to be the greatest need, and as cotton
is the principal product of the South,
your committee feels that perhaps each
state should contribute toward this
proposed capitalization on the basis of
say, 81 a bale of the amount of cotton
raised in the respective state, and pay
IN so cents q bale. AS the total crop is
estimated at 100000 bales at this
time, this would provide just exactly
the amount asked
"Your committee holds out no ex-
travagant promises, nor does it hope
that the facilities established by such
a corporation will at once remedy all
Of our Ills; but we do believe that such
corporation can be of tremendous
tcncft to the South, and to the nation
especially IN It's present emergency
and Will make it possible to provide a
market for some of our agriculture
r. oducts and the commodities (particu-
larly Central Europe) where no sales
can be made at this time except on
terms Of credit which run longer than
can be made available at the Federal
heserve Bank except through the
medium OF such a corporation'
Originators of Program
Besides Mr.. Maddox, the originators
of the program include r. S. EIecht
president Of the Hibcrnia Trust anc
Savings Company, New Orleans; J
Pope Mathews, president of the Pal
metto National Bank, Columbia, 8. c.;
Tom @. Smith, president of tho
Birmingham Trust and Savings Com.
pany; Moorehead Wright, president OF
the Union and MERCANTILE Company
Little Rock, Ark; J. Elw9od Cox, Com.
mercial National Bank, High Point
n. c.; J. A. Pondsom first vicc-prcsi-
dent SoutE ToXas Commercia, National
Bank, Houston, Tex; S. j. High, Peo.
pies Bank, Tupclo, Miss, and d. NJ