The Marietta journal. (Marietta, Ga.) 1918-1944, 1920-11-12
BANKERS MOVING
TO SAVE COTTON
Plan to Organize Bank to Finance
European Nations that
Need Cotton

perly caring for the cotton crop is
evidenced by the fact that they are
planning a huge fund for this pur-
pose. At meeting and luncheon in
Atlanta Tuesday, Mr., r. F. Maddox
told those assembled of the plans laid
at the recent meeting in New Orleans.
Basis of Agreement.
Mr.. Maddox stated that the New
Orleans meeting formally agreed to
establish such corporation on the
basis that the banks of each state of
the south should subscribe in proper
ton to the cotton production of the
respective states, and that Georgia's
part would be approximately $780,
600.
He showed in minute detail the
great business advantage growing
from the establishment of such
bank.
MIR. Maddox said: "The committee
appointed at the recent meeting of
the southern delegates to the Amer
lean Bankers Association convention
at Washington to further consider
the organization of a foreign bank
ing company under the Edge act met
in New Orleans last Saturday. The
committee invited representative
bankers from the cotton growing
states to further discuss the plan and
come to some definite conclusion as
to what should be done.
"This meeting was one of the most
enthusiastic l have ever attended.
They all realized that in cotton the
southern bankers had a common
cause, and the banks felt their re-
sponsibility in taking some definite
action to relieve the present depress-
ed condition in the cotton market.
at was found that with an esti-
mated crop of 100000 bales and
carry-over of 100000, we would
have approximately 100000 bales
to SELL 1t was thought that the con-
sumption of cotton in the United
States would not be over 100000
leaving, therefore, about 5000, 900
bales to be exported. As our ex-
ports last year were only 100000
bales, it was deemed necessary to in
crease these exports in order not to
have a large carry-over into next
years crop. 1t was also found that
there was very large number of
bales in the carry-over, estimated at
100000, of low grade cotton for
which there was but little demand in
this country.
South to Cooperate.
"After a very full discussion of
the entire demoralized condition on
our southern products, which include
cotton, rice tobacco, cotton seed pro-
ducts, lumber, etc., it was decided
that the time had arrived when the
south should cooperate in move
ment looking to the creating de-
mand for these articles.
"The difficulty seemed to be that
Germany and Austria, which prior to
the European war consumed ore
third of our cotton exports, a large
part of which were low grade, were
not actively in the market at this
time, largely on. account of the great
depression in their currencies and the
difficulty they found in financing
their purchases on the customary cash
60 or 90 day basis.
"Many sections Of central Europe
are anxious to buy our cotton, but
wish to buy under present conditions
on a 9 or IL months credit. There
seems to be no existing machinery
now in this country to extend these
credits, but it was believed that a
bank under the Edge act, which was
passed for the purpose of facilitating
Just this kind of business, was the
practicable thing to organize.
"a committee was appointed to
carefully draw resolutions expressing
the opinion of the bankers present,
and to fix a definite time for closing
the subscriptions to the capital stock
of the proposed company-to name
list of bankers who would serve as
directors and take immediate steps
to procure the charter from the fed
eral reserve board, which, under the
law, will have the direct supervision
of the operations of the company.
"The committee made its report
Saturday night, and it was unani-
mously adopted. The report pro
vided for campaign to be immed-
lately organized in all of the south
ern states, and the subscriptions to
close December 10.