The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-11-26
HAS NOVEL PLAN
TO FINANCE COTTON
WOULD HAVE EACH COMMUNE
TY ISSUE BONDS.
Georgia Farmer Says Plan Worked
Successfully in His County in
1S14-Talks to Committee.
The State, 23rd.

The State, 23rd.
w. ]. Walker, farmer and cotton
buyer Of Sylvania, Ca, was in Co.
lumbia yesterday in conference with
the executive committee of the South
Carolina division of the American
Cotton association with regard to
what he calls the Georgia Carolina
plan for financing the present cotton
crop.
After having heard in detail Mr..
Walkers plan and having asked him
many questions concerning it, the
executive committee passed resolu-
tion recommending it's adoption and
further recommends that the county
units lend an amount on cotton
which, in their judgment, they con-
slider safe.
This plan is modelled closely on
that pursued by the wheat growers
in the West in 1892 and used to fin
ance wheat when the market in that
commodity was demoralized. In
1914, the plan was put in Screven
county, Georgia, by Mr.. Walker and
his associates, and he says it worked
very successfully-in fact he has
numerous letters to bear out his
statements as to the success of the
plan. Mr. Walker says in 1914 the
National Bank of Savannah accepted
$4,000 of the cotton bonds from
Screven county.
In brief the plan provides for the
organization of cotton bonding COM
panies in each community in the
cotton states by Representative" busi-
ness men who are most interested !;
the taking over of the planters notes
with warehouse receipts attached and
the issuing of bonds against the same
through a trustee.
The plan contemplates the retire
ment of all cotton offered and fur
nishes the owner with high class
collateral security which passes To-
cally, by mutual consent, as sup
Elementary medium of exchange in
trade. The bonds may also be used
to satisfy creditors and at the same
time the plan holds cotton off the
market for six months or until such
time as cotton reaches a satisfac-
tory price.
By means of these bonds, the
strain of local banks is relieved and
large creditors in Baltimore, New
York and other cities, holding ac-
counts against farmers for fertilizers
and machinery, will take the bonds
when shown that they are good and
that they will facilitate collections,
says Mr.. Walker.
Mr.. Walker has his plan outlined
in booklet form and will send it
free, he says, to any community. 1t
his plan fails to raise cotton 10
cents per pound, he says no price
will ever be made for the booklet.
"This plan," says Mr.. Walker, lis
practical; it is safe and it is effec-
tive, and it will bring immediate re-
lief. If adopted over the cotton
growing states, it will send cotton
up ten cents the pound in short or
der"
Each local until that goes into this
plan is independent of all other
units, says Mr.. Walker. It makes its
own loan price on cotton in bonds.
The loan value is left to each unit,
which must underwrite the bonds
and be liable for their redemption.
In 1914 when cotton was selling in
Sylvania for five cents, Mr.. Walker
says this plan was put into effect,
seven cents in bonds was loaned on
all cotton, and the cotton was held
and sold later for eight to 10 cents.
The bonds circulate as medium OF
exchange only locally. Mr.. Walker
says. He had some sample bonds
with him yesterday and they are. in
appearance and size very similar to
81 bill.
Mr.. Walker is convinced that he