Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-26
PROSPERITY SURE IF,
CALAMITY HOWLER
WILL KEEP SILENT
Continued from Page IL

| financial assistance through the Fed
| eral Reserve bank. These assurances
have had some effect in stabiliZlng
| prices, and the tendency from now on
| may be upward. 1t appears the farm
| ers have determined that there will
| be no dumping of the crop on the
market, and are beginning to properly
store their product preliminary to the
orderly marketing of same. AS the
| market advances towards the cost
of production the mills will very like
Cooperate Says MIR. Gambler ,
GAS was the subject of remark
among the officers of the Central
Bank and Trust corporation. at their
daily conference; this. morning, there
is an unmistakable rift, in the cloud
points to improved conditions.
THE tone of the correspondence
coming to the bank from out of
town is more optimistic. The people
everywhere are beginning to realize
that the underlying conditions are
sound. The development of a
spirit of cooperation. which newt
ably will result in satisfactory
basis of reimbursement, is highly en-
couraging."
II have no advice to offer respect
ing the disposition of the new cot
ton crop, but l am reminded of the
soundness of economic theory that
all Staple COMMUNITIES. SUCH DIS GU"
ton. wheat, etc, should and will com
mand a price in excess of the cost Of
production.
cit was my confidence in this
economic truth that prompted me,
in 1914 to propose to underwrite the
cotton crop to the extent of $4,000
900 on a basis of six cents a pound
I realized that it had cost the south
ern farmers more than six cents
bound to produce their crop. and
was confident that if the cotton were
safely stored and held it would
bring a price that would yield a re-
turn on the investment.
Il feel the same way today about
our cotton crop notwithstanding the
bear raids on the market. If I had
would not hesitate to make advances
on cotton closely approximating the
present market price, and I may add.
Internationally, that l would well
come information from Washington
that the Gambler warehouses are to
be released by the government. which
is now occupying them. Unfortu-
nately. I have no idea when the gov.
eminent will vacate the warehouses
f SO that atota they 0f c w be available for
The Gambler warehouses, which
have been occupied by the govern
ment as an army storage and dis
tribution depot for several years, are
capable Of storing 100000 bales Of
compressed cotton, and if the ware
houses were available Mr.. Gamblers
confidence in cotton is such that he
would, as he says, advance S25, 000,-
600 for the storage of 100000 bales
of cotton.
Continuing Mr.. Gambler said:
Put Cotton In Warehouse
eff the farmers intend holding
their cotton, it is most important
49, IL ln6
warehouses, where it will be pro-
tected against the wind and weather
and against loss by fire. Warehouse
receipts are excellent collateral for
loans, and the farmer who is at
tempting to hold his cotton will
uation by storing his cotton and
using the warehouse receipts to can
eel obligations or secure credits.
1.-THE financing of the crop is
simple matter, but it requires CO
operation, and the cooperation must
begin with the producer of the sta
pie. Unless he places his cotton In
warehouses and protects his credit
with the country merchants by fur-
nishing the receipts as security the
merchants, in turn, cannot furnish
security to the country banks that
have financed him, and the banks,
in these circumstances, cannot ex-
tend further credits. But, on the
other hand, if the farmer will ware
house his cotton and secure the coun-
try merchants with warehouse, re-
ceipts, then these receipts will be
accepted by the country banks from
the merchants, and will, in turn,
secure additional advances from the
city banks and finally from the Fed
eral Reserve bank.
81 regard it as a favorable sign
that there are cumulative evidences
of this spirit of cooperation, and
am gratified. though not surprised,
growing brighter every day"