Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-21
Huge Corporation Which viii
Finance Europe's Needs Is
Discussed at Washington
Meeting
The Atlanta Journal News Bureau,
623 Riggs Building.
BY THEODORE TTLLER

43@V0V1&kS G&LIEH
WASHINGTON, Oct. 20.-Means
and methods for the south to meet
it's own problems with reference to
marketing the cotton crop, which
would at the same time tend to re-
lieve conditions so recently COMPLAIN
ed of by the producers who have been
In Washington, were inaugurated at
an informal and executive conference
of southern bankers attending the
American Bankers association meet
ing called by Robert F. Maddox, of
Atlanta. What appeared to be the
prevailing opinion among those at
tending the conference was for the
organization of a corporation under
the Edge law Of sufficient capital to
justify large credit responsibilities,
and to use that as a means Of open
With a prospective crop Of 100000
bales, as reported by the govern
mont, and carry-over of 100000
bales from last year, with American
consumption taking not to exceed g.
100000 bales, thus leaving 100000
bales to be cared for through ex-,
ports or other sales. it is admitted
by bankers from all parts Of the
south that the problem is attended
with more or less seriousness, yet is
one, they feel, that the south will be
able to solve with a minimum of
loss.
The southern bankers are arrang-
ing for a general mass meeting to-
night at which they intend to discuss
credit conditions confronting farm
ers, particularly cotton growers, in
an effort to work out some plan of
relief.
Optimistic Mote
An optimistic note was found in
prevailing opinions about conditions
it was ventured by some of those at
tending the meeting that the south
was far from being broke" and
years where conditions were equal
ly as onerous AS pointed out by
Mr.. Maddox, the south in 1914 faced
what was thought to be disaster, yet
it weathered the storm. And he ex-
pressed belief that it would do SO
now. The bankers are in little mood
to clash with the officials of the
government over the policies thus
far announced with reference to
financing the agricultural produc-
ton as sound banking principles
are applied.
A committee Of producers late to-
day waited upon the subcommittee
named by the agricultural section
of the bankers association to urge
adoption of a resolution declaring
for a reduction in interest rates to
member banks and the abolition OF
the graduated rates for rediScountS.
a matter which was threshed out
during the conferences of producers
last week. The committee was not
asked in the statement, which it. is
to make to the resolution committee,
of the association. to deal with the
ed to be a matter within the scope
idea of revival of the war finance
corporation, since that is not deem
of the association strictly con
strued. Those attending the in
formal conference of southern bank
ers accepted the announcement of
Secretary Houston on that point
last week as being final. 1t Is the
|disposition~of the agricultural com
u statement Of the conditions and re-
lations of agriculture to finance and
leave for the resolutions committee
of the association the adoption OF
suggested remedies with reference
to the interest rates. ETC.. if such are
d ired.
The Proposed Corporation
1t is understood that the idea dis
cussed~at the conference with refer
ence, to organization of corpora
capital among the cotton producing
states on the per bale basis of pro-
duction. either two Or five dollars
per bale. At the lowest estimate
this would mean corporation. of
twenty-five million dollars which
would be able to issue debentures UP
to ten times that amount. and with
such accumulated responsibilities
attempt to meet the marketing sit
uation. Cotton, ordinarily, bank
basis. but that a longer term of
credit would have to be accorded the
European buyer, who is now either
curtailing his purchases on account
of internal conditions or who is out
of the market by reason Of lack of
securities that are regarded as read
lily marketable.
The first condition it was pointed
out, applies pertinently to the Sit
uation Of England, which, while buy
ing cautiously in recent months, now
faces severe labor troubles. The lat
ter condition applies forcibly to the
central empires. The idea in it's mi
tial stage is that the large corpora
tion created under the Edge law
could give close consideration to such
securities as Germany, for instance,
would have to offer, as well as put in
operation a workable plan by which
transactions can go forward, and
which the government Of the United
States could not undertake, but
which England has to a certain ex-
tent. This involves the dealing in
trade acceptances, it is stated, which
furnishes fixed plan Of operation.
The thought behind the conference,
it is understood, was for the south
ern financial interests to devise
means whereby this or a similar idea
could be brought into realizat ton,
which would find a response in other
financial centers of America, since
cotton was the greatest of the ex-
ported CROPS.