Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-12-09
Claims Each Com m unity
Can Solve Cotton Problem
Through Sim pie Nesv Plar,

The following article, clipped from
the Savannah Morning News, is re-
printed by The Tri-Weekly Journal in
the interests Of throwing light on the
present situation confronting south
ern farmers:
Of special interest to farmers,
banks and all others concerned with
the cotton trade is the new plan
formulated by w. J. Walker and his
associates of Sylvania, which, it is
claimed, will enable the farmers to
hold their cotton until prices again
reach Normal, and in the meantime
to pay their creditors.
In brief, the new plan is to form
units of twelve or fifteen business
men in each town. These men will
form an unincorporated company and
will issue bonds for the cotton. These
bonds are to be given to each farmer
who presents his warehouse receipt,
attacksd to his note, to 91 trustee, to
of the community. These bonds
would be expected to pass as local
currency in the community and in
larger amounts accepted by the larg-
er banks in the big cities in the south
and east and by other creditors. Of
course, the bonds will be acceptable
as currency only on mutual agree
ment, but as they WILDE secured in
three ways there will be no difficulty
as to their acceptance, Mr.. Walker
believes.\ The three ways in which
the bonds will be secured will be:
First, the cotton itself; second, plant
er's note to make good in case it be
| necessary; third, by the unincorporat-
| ed company.
The plan is known as the Georgia.
| Carolina plan and has been demon
| strated, Mr.. Walker said, to the state
meeting of the executive committee
| of the South Carolina division of the
| American Cotton association in it's
meeting at Columbia, S. c., on No
vember %, and this organization APP
| Endorsement. The plan was original
| ed in 1914 and at that time the legal
| forms were drawn up by Judge A. B.
| Lovett, of SylVania, and on an opinion
for the National Bank of Savannah,
written by the late Colonel William
Garrard, the National bank took $780,
| 900 worth of the bonds.
I Mr.. Walker gives assurance that
| the plan can be put in working order
| in twenty-four hours after being re-
ceived and is having printed some
booklets describing fully how the
be ready for distribution in day or
so and will be sent free to any coun-
ty unit which desires them. No
charge will be made for their use I'M
less the price of cotton does go up
10 cents a pound by July 1, 1921. In
| that case the price will be $500.
"Too much of the cotton is now
hidden under the old China berry
tree" said Mr.. Walker, land this
boarding of the cotton is merely
hurrying on a situation which will
soon terminate in disaster to all
concerned. The cotton situation
among southern farmers is approach
ing a crisis, but this plan of putting
it up as collateral will save the sit
uation. Unless something is done in
the near future there will be a dis
aster that will forever class colt ton
as an unstable crop. My plan will
render the whole cotton situation
stable, safe, and will do away with
the very dangerous margin calls. My
plan can be put into operation all
over the south in ten days, and l
have already received letters from
points as far distant as Arkansas
concerning the plan.
Under my plan the bonds given
| for the cotton would be in various
denominations and would be payable
| six months from date at a rate of
| 6 per cent interest. Thus after the
first six months these bonds would
| fall due every month. And there
would be no question as to the facil-
ity Of collecting them. The trutee