The Bossier banner. [volume] (Bellevue, Bossier Parish, La.) 1859-1952, 1920-09-02
Seriousness of Cotton
Situation Briefly Told

The future of the cotton industry Ill
the South hinges upon the outcome of
the efforts now being put forth to avert
panic Oh the part of the cotton pro-
ducers. Mighty forces have been at
work to force the price of the most
expensive crop down to figures which
obtained a few years ago and coming
upon a time when hopes We're high
after virtual crop failure, it has been
comparatively easy to start the stam- |
pede which means ruin to Il very large |
proportion of the farmers and mer- |
chants of the South.
Few people realize that the cost of
growing this crop is higher than any
crop In the history OF the South, amt
many conservative men have reported
that 81 cents would not meet it. With
cotton at 30 cents or less and seed at
$50 or SD it is absolutely impossible
to make botlr ends meet. Several nlar-
chants who had been carrying small
farmers have already been confronted
by the seriousness. Of the situation by
visits from their customers who told
them ii they wanted their cotton they
could 20 out in the fields and pick 1t.
as they could hot afford to pick it.
This is the situation that has now
pron,pted Il call for convention of
cotton men, to meet with the National
Board of Directors and Finance Conn
mittee in Montgomery, September 1st-
2d-3d. The Louisiana Division OF the
American Cotton Association, in Il
meeting held August oath iii New Or
leans, took a decided stand for prompt
action by the Federal Reserve Board,
! to assure Southern banks of sufficient
| credit to, enable them to finance the
growing crop, and save the South from
disaster
w. q. McAdoo. when Secretary OF
| the Treasury. took prompt action
few years ago, when the South was
| threatened. l,y announcing his readi-
ness to put S:l00aOO.OOV at the disposal
of Southern banks to save the South,
/ and this Immediately averted. the i'm
pending calamity.
i
Montgomery prepared to urge prompt
1 ard forcefal actioii by that convention
on the line of naming Il representative
committee from every cotton state to
wait upon the Federal Reserve Board
in a body and urge action along the
. lines of resolution framed by Chair
man W. b. Thompson OIL instructions
of the Louisiana meeting
i The meeting also adopted il reSo-
luton by Edmond We'll. of Acadia
4 urging cotton farmers to adopt MIR
Thompson's suggestion to not harvest
, the lower grades of cotton which are
classed as understandable.
! Mr.. Thompson was taken up witt
Mr.. Ben johnson. President of the
Louisiana State Bankers Association
the question of having that body TAXI
action OH the attitude Of the Fedora
Reserve board, and has wired Presi
q dent Wannamaker, urging him to have
other Southern Bankers Association
act without delay.
The resolution above referred t.
follows:
Whereas, the recent assault upol
raw cotton has reduced the price o
4 that Indispensable commodity to figure
materially below the cost of produe
tion. thereby threatening disaster no
only to the cotton producer, but to til
cotton producing industry. to the Sout
| Az 81
large; and,
Whereas. the main factor in tn
! decentralization of the cotton marke
I and the principal weapon employed .
the enemies of cotton in their Wicke
I attack upon values has been tile feil
! that financing resources will not /
/ sufficient for the orderly marketing {
the coming crop. but will be so limite
as to precilate a slaughter sale of I'll
! commodity: and.
/; Whereas, the uncertainty in the final
cial situation and the fear aforesai
are the direct results Of the rutlle'
! attitude of the Federal Reserve Boai
in the matter of restriction of credl
: together with the half-hearted and u
= convincing expressions of the s;l
= board in respect to credits OH agricr
| tural products,
81 Now, therefore, he it resolved by Il
Louisiana Division Of the Americi
Cotton Asyociatien. III convention q
. semlpled ut New Orleans on the a
day Of August, 1920. that,
=. 1st. The American Cotton Associ
ton ut the Forthcoming convention
8. lie held at Montgomery, Ala. Oh the
nd of September be urged to adopt a n
= olution memorializing the Federal I
serve Board to issue mt once to t
cotton producers of the South and
the banks serving the same il aefini
unetuivoc;tl and convincing assurail
that sufficient credit will be extend
! to the cotton producers to enable tl,t
to market the product gradually to t
lend that no pEpducer shall be COMPEL
! to part with his product ut less til
/: the cost Of prouctidl plus reast
= able profit. 4
I'd. Tht the American Cotton As
& citation shall appoint Il special comm
sion representing the farmers. bank'
49, -