The Dawson news. (Dawson, Ga.) 1889-current, 1920-09-28
RANKS BALK FARMERS
IN PLAN TO HOLD CROP
lang ARE LACKING TO FL
NANCE DELAY IN SALE OF
COTTON AND WHEAT.
GROWERS FAIL IN UNITY


1o.ns to Other Banks.
KANSAS CITY, Mo.-Eforts OF
sorn,ors, unions, declarations of farm
t,,roaus and other agricultural bod
-. n stimulate the holding of wheat
and cotton for higher prices are en-
onurtering obstacles. The principal
obstacle is in the position of banks,
which being already heavily loaned
IN cannot extend loans in liberal
omonnts to finance the holding of
orons Another is the lack of unity
If action among producers. There is,
If course. also disagreement as to
the wisdom of holding for better
prices.
Farmers are sufficiently well or
ganized to make their present cam
naign to hold wheat and cotton eff
fectiye in reducing receipts on mark
e+s TO an appreciate extent. In 9TH
nr words, there are enough farmers
in the organizations favoring delay
in the sale of these crops to make
a great difference in receipts, but
This depends on the ability of the
PRODUCERS to carry out their desires:
So far as bankers in the south and
west are concerned, it is obvious that
thew are eager to do whatever they
can to insure high prices for cotton
and wheat The more money bush
ell of wheat or a bale of cotton
brings the quicker the producers
will be able to pay off the obligations
they incurred in making these crops
and the greater will be the deposits
of the growers with the bankers.
They are. for this reason, UNI
ouestionably on the side of the pro-
Queer, but their powers of assistance
are limited.
In addition to the loans held by
the federal reserve banks in the
wheat and cotton areas it is import
ant to note that the loans held by
the federal reserve bank, of Kansas
Citv total S112,795, 900. The Dallas
bank is holding loans of SIS, 900.
The St. Louis bank has loans of
SllO,I9I ,UUU' ne AtidIlLd bclth AeAS
lOans of $121,558, 900. The loans
held by the Richmond bank total
S113l82,000. The Minneapolis bank
has loans of S86,156,000. The total
loans held by the banks is $685.
OO5,OOO while the amount of money
thew loaned out but which they were
forced to discount with other federal
reserve banks aggregates $157,999,-
600.
Thus far in the new harvest sea-
son there has been only slight I'M
provement in the position of banks
in the wheat and cotton areas, large
" because of insufficient marketings
of crops. Normally this is a period
of liquidation of loans and accumu-
lation of deposits in agricultural dis
tricts, money received from the sale
of new crops being used to pay off
obligations. At Kansas City, for ex-
ample. the first two months of the
new wheat crop year, which begins
in July. witnessed an increase of
only $10,000,000 in bank deposits,
against an increase of $65, 100000
in the same period a year ago.
feuefaI Reserve StdIen1chtS'
An excellent barometer of the
condition of banks in the wheat and
cotton areas of the country is to be
found from the statements for the
past week by the federal reserve
system. These statements show that
the federal reserve bank of Kansas
City, after having exhausted its own
lpnGInD forced
borrow S22,842,000 to maintain Its
legal minimum reserves. The federal
reserve bank of Dallas, in Texas, has
borrowed $39,097.000 to enable it to
meet the demands of its member
banks for loans. The federal reserve
bank of st. Louis owes $26,172,00O.
The federal reserve bank at Atlanta
owes $31,711, 900 and the one at
richmond, in Virginia, owes $780,
100000: In the spring wheat coun-
Try the federal reserve bank of Min
neapolis owes $18,177, 900.
So Bushel Is Wanted.
Indicative of the lack of unison
among producers is the fact that, at
meeting on the financing of live
o stock at Chicago last week, it was
agreed to urge the interstate COM
merce commission to issue a prefer
entail order that would bring about
rush of wheat to market for two
weeks. The stockmen took this action
because they need loans badly to
nelp carry or to purchase live stock.
and they know that new money
would become available if more
wheat was sold. Almost at the same
Ime wheat growers met in the
southwest to urge holding of the
gram for SO bushel Larger sales
VI cotton would also improve the
money situation in agricultural dis
ing. g
Where farmers do not need to bor-
row or even to extend old loans to
Enable them to defer marketings of
pCcps the banking situation is not
factor. On the whole, however, the
oan,king situation is so tight that it
VIII VIII exert powerful influence
exams" o;sst holding of crops until suffi-
meht sales have been made by grow
s U.s. OF wheat and cotton to effect n