Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1920-10-20
GA. CONGRESSMEN
DEMAND ACTION.

GA. CONGRESSMEN
DEMAND ACTION.
ATLANTA, Oct. 20.-Steps to
relieve the cotton planters in Geor-
gia and other Southern states from
the present financial emergency have
been actively put under way as the
result of a conference in Atlanta
YESTERDAY arranged by United States
Senators Hoke Smith and William J.
Harris with practically every con-
gresham from Georgia. The con-
ference was held in Senator Smiths
quarters in the Piedmont Hotel. Con-
gressman Chas. X. Crisp, OF Ameri-
Gus, was in attendance.
The following telegram was sent to
President Wilson:
We earnestly request your assist
ance In obtaining financial relief for
producers of cotton so as to prevent
the dumping of the twelve months
supply Of cotton on market at prices
below the cost of production. In our
opinion, the emergenc can best be
met by reyiving the War Finance
Corporation and we urge that this
be done without delay as it will pro-
new foreign markets and help relieve
most distressing situation"
Wire Harding, TooA
Following is a telegram sent to
Governor w. F. Harding, of the Fed
eral Reserve board:
Permit US to bring to your atten-
tlon a ruling of your board adverse
to the discount by Federal Reserv
banks of notes given by cotton fac
tors. We. are advised that quite a
large portion of the cotton crop is
handled by cotton factors and that a
successful continuation of their busi-
ness is essential to the orderly move
ment of the crop. Cotton factors
give their notes for money borrowed
which is loaned by them to cotton
farmers partly to make their crops,
but largely to harvest and prepare
cotton for market. The cotton fac
tors who do business in large cotton
markets receive their cotton and put
it in shape for intelligent and order
~ marketing. They take warehouse
receipts for the cotton stored in
warehouses and use these warehouse
receipts as security for their notes
on which to borrow the money used
as before stated
we insist that the Banking and
Currency Act provides for the dis
count of such notes. First. because
they are drawn for agricultural and
commercial purposes. Second, be-
cause the proceeds are used for agri-
cultural purposes. Third, because the
notes are secured by staple agricul-
tural products and the advances are
not merely investments.
"We believe the cotton factors
notes embrace the requirements of
each of these three provisions. If
they fail in either of the three the
Act authorizes their discount. The
act does not admit the discounting to
notes given hv farmers for the money.
If the money went for agricultural
purposes, the notes can be discount
ed. no matter who gives them. The
character of use of the money, not
the occupation of the person, gives
the right to discount.
Not Subject to Discount
ITO hold that advances by cotton
factors are investments and there
fore not subject to discount is to
strike from the act the word merely,
for the objection only applies where
the transaction is merely an invest
ment. In the case of the factors the
! advances are not investments, but
are a nart of the business of gather
| ing together the cotton and acting as
agents for the farmers to sell the
same. The advances made by the
cotton factors are parts of the most
| important commercial handling of
cotton. The nations highest courts
! do not hesitate to reverse erroneous
decisions. The facts must now be
more clearly before your board than
they were when the decision was
made
1--WE urge a modification of the rul-
| ing you have made with reference to
discounts bv Federal Reserve banks
of cotton factors notes and that the
discounting of such notes be author
ized."
The two telegrams, as above, were
signed by U. S. Senators Hoke Smith
and VIM ]. Harris and Congress-
men J. w. Overstreet. Chares r.
Crisp. w. G Wright, w D. Upshaw.
w Wise Gordon Lee, C Fl. Brand,
T. M Bell, Carl Vinson, w. G.. Lank-
ford, w. w. Larsen and Frank Park.
In addition to the foregoing tele-
grams wire communications were
sent to governors senators and con-
gressmen in the other cotton growing
states urping +hat action be taken to
relieve the cotton situation and the
fCouAinY1ad on para g