The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-12-11
THE GREENVILLE
FINANCE PLAN
For Financing the Cotton Farm
er-By w. II. TimmOns

Realizing that some steps should be
taken to assist the farmers In financ-
ing themselves during this period of
low priced cotton and depressed trade
conditions. the Merchants Depart
ment of the Greenville Chamber of
Commerce was called III session to
discuss the situation After several
meetings, the Merchants Cotton COM
pany, an adjunct of the Chamber Of
Commerce was organized.
1t was decided to make an effort
to raise II fund to lend farmers in this
section i'm small amounts, secured by
cotton warehouse receipts, thus en-
abling them TO hold their cotton for
an advance i'm price and be in po-
sition To meet pressing obligations and
have funds in hand for immediate
needs. With the cooperation of the
merchants, banks, and large mill
owners, fund Of $500, 10000 was ere
ated and placed in local banks for
this purpose.
The plan is simple. The company
lends To any farmer. tenant or land
owner. within a radius of 20 miles of
Greenville. No fndividual loan is
made on more than 90 bales. The
loans are based on 12c per pound for
good white cotton, .middling or above,
and no low grade cotton is accepted.
AS the price Of cotton iluctuates this
basis il raised or lowered, so as to
leave margin Of 20 per cent between
tho value of the cotton and the
amount OF the loan. The cotton is
/ ro t., ha on in i1,t A.
bonded warehouse, the warehouse re-
ceipt showing weight, tag, numbers,
and grade. Upon surrender of this
warehouse receipt and proof that
there Is no prior lien or mortgage
against the cotton. the loan is made
on n six months note, with interest
deducted at the rate of per cent per
an,,um. Should any farmer desire TO
sell h,s cotton \or take up the note.
before the expiration of the six
months, the difference in interest is
refunded. The plan has been in op,
GRAFTON for almost month, and IT
has been found that It appeals TO the
acreage farmer very much.
Loans are made daily on from so
to 120 bales. usually for small amounVs
To each borrower. ranging from sl6o
To $500 Some farmers take advan-
t'tge OF the limit OF 20 bales. though
We encourage them to borrow as lit-l
t.e as possible, I'm order that the
fund may reach and serve all the
smaller farmers who are cndcavoring
To dO their part in the general hold
ing movement which has swept the
country. -
The entire Chamber of Commerce
has agreed that the Grccuvillc plan
is Il great encouragement to the farni-
er. IL relieves the Necessity of the
sale of distress cotton, and assures
him he can borrow with the proper
collateral. n limited AMOUNT of money
ut ~ reasonable rate of interest
Al this money which is being put
I'm circulation is not only benefit
to the borrower, but help to the
merchant and the community at
large. 1t Is estimated that the fund
when passed on from one debtor to
another will eventually pay or liqui-
date several million dollars worth Of
paper. or bills which should have
been paid i'm The early fall. W
The plan is feasible and the Green
willie Chamber of Commerce would
ike To- see IL put I'm operation in 9th
er cities throughout the cotton states.
The board Of directors has authorized
That a complete statement of the
p!an. with samples Of checks and 9TH
or printed matte" used b, mailed on
request To all organizations, or inter )
ested PERSONS in any city or county
I'm the south