The Birmingham age-herald., 1920-10-06
BUSINESS ADVISES ALABAMA ARMERS
 ID HOLD COTTON
Senator Conner Makes AvaiIa- ble $250, ,00O for the Plant CTS to Utilize In Tiding
 Over Present Crisis

It is the consensus of opinion
 in cotton trading circles and
 among business men at large
 that it would be practically suicidal for the cotton producer
 to think of marketing his cot ton at this stage of the game. It appears to be the further consensus of opinion that the
 only solution of the problem is for the farmer to warehouse, store and insure his cotton, borrow on it enough to meet
 his pressing obligations and
 hold the remainder until there is a real market for the staple. There is admitted to be. no market now. Opinion is that the more cotton is offered the lower prices will tend. COOPERATION The third item in the business mind 1 is that cooperative effort by Ala bamians themselves from farmer to him who finances the farmer will alone enable the carrying out of the ware housing, insuring and borrowing plan. Senator Conner has offered $25O,O0O with which to help finance the crop. It is believed that if other financial aid is ex- tended in amount sufficient to assure the financing of 100000 I,uuA nf the financing of the remainder will automatically care for itself. All admit the seriousness of the situation and it's bearing on all inter- ests.
 x w D. Nesbitt, president of the War rant Warehouse Company of Birming- ham, has outlined the situation and the remedy. He says:
 We in Alabama are learning to be self f-reliant and to work together. We have within our own control the resources and abilities to do all things necessary for our mutual up- building.
 "We have by hard work and com- paratively small financial contribu- tions built our port of Birmingham ana made available for profitable use by our citizens and industries natural waterway assets and improvements worth more than $10o,o00,0oo. we have through cooperation and thoughtful planning joined the energies of our great coal producing industry with the efforts of our state admins tration to the end that our available coal may be equitably distributed to Alabama industries and homes. DEMORALIZED MARKET "Our great cotton producing indus try now suddenly finds itself, after eight months of productive labor, with it's output, made under high cost con- ditions, confronted with demoralized market and available sale prices far below the actual cost of producing the crop. These producers of a prime necessity have borrowed money to carry forward their operations and stock and pay their obligation, other wise, financial embarrassment, and in some cases, ruin will come to them and to their creditor merchants, fertilizer manufacturers and banks. This can not happen, except all business in the state consequently suffer.
 ITO insistently sell the crop at prices 1 less than the cost to produce will bring amounts less than sufficient to pay obligations and finally leave great unliquidated balance; yet a part of
  and the balance gradually liquidated | if sound financial and commercial con ditions in Alabama are to be main tained.
 With declining cloth markets, tight money and the uncertainty of this pe- riod of readjustment from war prices and conditions, the world buyers o1 cotton are temporarily out of the mar ket and to continue to offer cotton for sale means a constantly lessening quoted value without the hope of sell ing and certain disaster to Alabama's s great cotton producing industry.
 MUST STOP SELLING
 The only escape is for the farm CT to stop trying to sell until some
 one wants to buy and then to mar kct his cro gradually, equal parts per month over period of eight months. as the worlds needs and financial ability can absorb 1t. ITO do this, they must be able to borrow on a part of their cotton a reasonable per cent of it's value. "No disaster or business trouble can come to any one or any line of industry in Alabama without adversely affect ing all of us and it is good business and constructive citizenship to recognize this principle and be ready to lend such practical and safe assistance as is in the power of each of us.
 President B. B. Conner of the Avon dale Mills Company, recognizing the present needs of the farmers. as well as the business principle involved, has set aside of the funds of his companies $250, ,000 to be loaned at an interest rate of six per cent. These loans to be made in amounts of $S0 per bale for middling and better cotton and limited | to six bales for any one borrower. "Of this 3250,0oo. S50.0oo will be loaned through tho Warrant Ware house Company to producers of this immediate district. The Warrant Ware house Company at Mobile. with theiB large facilities for caring for the stor- ! ing. grading. insuring of cotton are glad to undertake. without additional cost to the borrower, to arrange these loans and any others that may be available to the end that the producers sible in close touch with any funds needs.
 HAS BEEN DONE BEFORE Ut will be recalled that this com pany. in the panic of 1s07-S, arranged 1 loan certificates of such a character l that the owners of cotton secured ad . vances of six cents per pound on their | cotton and this was the then prevailing market value. These borrowers. by gradually marketing, finally received 1 Sc to 10c per pound for their cotton. l Again in 1914. when war suddenly l paralyzed commercial and financial nerves and when cotton declined in l sixty days from 13 cents per pound to less than cents per pound, similar CO.,