The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-10-12
Germany Alone Said to BE III Need
Of Two Million Bales With Mills
and Workman in Readiness But
Money Not Available.

G. Harding, president of the board OF
governors CT the federal reserve
bank, with o. C.Wells, newly ap-
pointed member Of the board, met
here today with the directorate of
the Atlanta branch ard discussed the
movement 70 hold coEtcn for 10 cents
a pound, wi:ich HIS been sponsored
by the american Cotton asSociat.on.
T.. 3. Jackson, director of .he
Georgia bureau Of markets, who said
he was speaking for 80 per cert.
of the banks in his cw:2 state, made
& Plea before the beard for more
liberal extension CT credit to South
ern planters, claiming taey need The
money 10 pay OF debts incurred
while producing the present ccttc@
crop.
Mr. jackson asked iha: members
cf the federal reserve system be al
lowed to discount notes for money
which, he said, is to be used in pay
ment of wages, fertilizer and supply
bills. He said the loans would extend
for Only few days and would not
materially affect the reserve Of the
federal system. He also declared
that great majority of planters
were not seeking money simply to
finance themselves while they were
holding cotton off the market. They
are hard pressed by creditors, he
said, and must have cash at once
with which to meet obligations in
Cured this summer.
Fer Export Corporation.
Governor Harding announced to-
nigh.. that Birmingham is to have a
sub-treasury of the United States i'm
alediately in the sense that the local
branch of the federal reserve bank
will perform the functions Of a sub
treasury.
Championing the Export Cotton
association idea tonight, Governor
Harding declared that ne had been
informed by the commercial ageEt of
the German government, now in the
United States, that Germany alone is
i. il need of 100000 bales of cotton;
that the Germans have the mills with
which to spin the cotton and work
men to operate the mills, but that
their money is SO deprecated that
they can not pay for the cotton they
need in money.
Under well organized cotton ex-
port organization" Governor Hard
ing stated, ave could ship our raw
cotton to Germany under an ade-
Guate guarantee by the German
banks and the German government.
The cotton would be manufactured
| into cloth and the manufactured pro-
duct disposed of to nations whose
currency has rot deprecated, and in
the end the Germans could pay US for
our cotton in good American dollars.
"This system would have to ex-
tend over period of nine months
to allow for the shipment Of the cot
, ton to Europe, its manufacture and
sale of the finished product.
To Stimulate Situation.
"In my opinion, the first 10000
bales of cotton shipped abroad un-
der this system and with this guar
antee would have an instantaneous
effect in stimulating the entire cot
ton situation. To my mind, it is the
greatest opportunity in the South to-
day.
'It is up to the South to do this
thing for itself and with its own
money. The North has money, but
it likewise has use for all the money
in its possession. 1t is the duty and
,, the opportunity of the Southerners
to do this for themselves"
Matters transacted by the dlrec-
tors of the federal reserve bank OF
Atlanta in their meeting here today
were:
The question of changing the base
! rate of per cent. with progressive
features to a fiat rate of I per cent.
and referred to a committee. This
committee will report after a meet
ing of all the governors of the fed
eral reserve banks to be held with
the board members in Washington at
an early date.
The matter of making provision
for credit to the farmer to enable
the liquidation of debt for fertilizers
and the like was also referred to a,
committee to report later. This