The Covington leader. (Covington, Tenn.) 18??-current, 1920-10-28
AMPLE CREDIT FOR
THE COTTON CROP


Tie farmers Of the South viii be
extended ample credit for the orderly
marketing Of their cotton. This inn
portant statement was made by Gov.
M. B, Wellborn, Of the Sixth District
Federal Reserve Bank, in a public
speech made to a convention Of auto
mobile men in Atlanta on October
90 Here is what he said on this
subject:
aWithin a few months the Federal
Reserve Bank of Atlanta by its lib
eral policy to aid production, has fl
nanced the farmers through the mem
Der banks, and now we wish to assure
the farmers ample credits to meet
their requirements viii be extended
70 them through the member banks
for the gradual and orderly marketing
Of their crops.
On the act which created the fed
eral reserve system it was provided
the farmer should have preference In
point Of time over other business
naper His notes run six months
while those in other lines are for 80
DAVIS. It * nv belief this was IN
tended to give him time, not only to
make his crop, but to market it.
III do not think there will be any
dumping Of cotton this year if the
banks and business men will stand by
the farmer
Mr.. WelIborn says the statements
made about the condition of the
South bv committees which went to
Washington to make demands on the
Federal Reserve Board have helped to
put down the price Of cotton.
eve must admit" said he, chat
cotton had to 60 down to some extent
as everything else has gone down
but these visits to Washington and
the messages that have gone out to
the world have created the impression
that the South is poverty-strieken
ard cotton took another tumble"
In further comment on the policy
Of the Federal Reserve Bank. he said:
Between January and October /
Of the present year about 10 per cent.
of the banks which are members of
the federal reserve system have in
creased their loans by an amount ex-
ceeding S1,800000, 900. This great in
crease has been made possible by the
accommodations extended member
banks BY the Federal Reserve Banks.
In our own district (Atlantal since
January, 1920 the Federal Reserve
Bank loans have increased about
100000. Does this look like con-
traction or that federal reserve banks
are shutting off credits
Last spring our bank felt the
necessity Of inaugurating a CAM
paign for the control of credits, as
The signs Of the times indicated ex-
pansion of loans. for Injuries were
going on too fast. We then fund it
necessary to call attention to the
heavy burden Of automobile credits
that were being thrown upon our
bank We had no intention of strik-
-ng a blow at the great-automabile in
dustry, but merely to discourage and,
it possible, to prohibit the reckless
granting Of credits to extravagant
and impecunious purchasers of cars
WIKI could III afford to pay for and
maintain the upkeep Of an automo-
bile. | think our position and action
taken in this matter should be APP
preciated by all substantial dealers in
automobiles who desire sound and
stable market for their goods.
"The Federal Reserve Bank of At 1
lanta RECOGNIZES the great Importance
of the automobile industry and does
not desire to discriminate against
motor paper Of theNproper character,
ard is always ready TO accept suca
paper from our member banks when
i meets the requirements Of our regu-
latlens and seasonal conditions ia CIR
district.
Since this public statement was
made Gov. Wellborn, Secretary H. G.
Hester of the New Orleans, Cotton
Excrange, who has been recognized
for quarter of a century as an au-
thority on the cotton situation. pub
lished a statement which strongly
confirms Mr.. Wellborn's opinion that
the price Of cotton has been depress-
ed by an ureasoning scare that caused
producers to dump on the market
more than a million bales between
the first Of September and the middle
na4o