Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-23
Germans ofNatiora
SuggestG reatBalr1k
For Cotton, Exports
Letter to Senator Hoke
Smith Proposes New
Means for Opening For
eign Outlet to South

An entirely new prospect Of finan-
cial assistance in opening up the ex-
port of cotton to central European
countries, which have bought little
cotton for the past two years, and
which would greatly relieve the sag
in the present market if they could
be financed, was announced Thursday
by Senator Hoke Smith.
He has received a letter from Helm.
rich Charles, an American of Ger
man extraction and a member of a
large banking concern of New York,
informing him that Germans in this
country, of German birth or extrac-
ton, are willing and anxious to form
large bank for the particular pur-
pose of financing the sale of cotton
to that country, and asking him for
an expression of his views concern
ing such project.
Their object, primarily, would be
to assist financially in the rehabili-
tation Of the German textile industry,
which is practicallyin state Of coma
for want of cotton. In serving that
object, they believe, they would like
wise render a service of great value
to the growers of cotton in the south
ern states. The German cotton man
>ufacturers have idle machinery, idle
labor and idle coal. The only thing
they need is cotton. Prior to the war
thcy consumed 100000 bales a lear.
The heavy depreciation of the Ger
70 thn 10Th
value of the American dollar, coupled
with the lack of credit facilities in
this country, holds them at a stand
still. Their machinery is rusting and
their labor is restless.
Senator Smith has replied to Mr..
Charles that he approves wholeheart-
edly the suggestion of bank in this
country, to be financed by. German
Americans and to be engaged In the
business of financing exports OF cot
ton to Germany. He sees in the plan
prospect of immense financial
benefit to the south.
other Aid Also In View
In connection with his announce
ment of the correspondence with
Heinrich Charles, Senator Smith took
occasion to refer also to the move
ment launched in Washington by
Robert F. Maddox. president of the
Atlanta National Bank. one of the
foremost bankers of the south. a Tor
mer president of the American Bank
ers' association. and recognized au-
thority on southern economic conol~
lions.
AS announced on Wednesday in
The Journal, in a dispatch from
Theodore Tiller. it's Washington cor,
together the southern bankers at
tending the convention of the Amer
lean Bankers association, now in
session in Washington, and laid be-
fore them a project to form with
southern banking capital very large
corporation to engage in financing eX-
ports of cotton to central European
countries. Mr.. Maddox pointed out
to southern bankers the fact that the
Esch bill passed by congress allow
national banks to subscribe ten per
cent of their capital stock to cor
porations engaging in the promotion
of the export trade of the United
States. His project, Is to form
ern banks, the capital stock to be
pro-rated among the states of the
belt according to cotton production.
and the total capital to be around
$25,000,O00. The bankers. received
his suggestions with the utmost in
terest. it was further stated in Mr..
Tiller's dispatch.
1.-The movement started by Mr..
Maddox is exactly what we need and
is launched exactly at the right
time" said Senator Smith. IL am
extremely anxious to see him get
the support he deserves from the
banks throughout the south. He
could render no greater service to
his section of the country. If he can
get his export corporation started
right away, and if the German
Americans will organize their bank
as suggested by Heinrich Charles, L
believe we can put 100000 bales Of
cotton into central Europe this win
ter. The resulting benefits to the
south would be enormous"