Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-12-21
BONDING BOARD
MAY RESTORE
COTTON PRICES

4AldI IlC LO1 Al1IlOll VI
bonding companies throughout the
south, on the Georgia-Carolina plan
put forward by w. J. Walker, prom
inent planter and business man of
Screven county, would go far to-
ward restoring a fair price for cot
day by ]. J. Brown, commissioner or
agriculture, in a letter to Mr.. Walker.
The latter has been in Atlanta for
the past week or ten days presenting
the plan to bankers, business men,
owners of farms, public officials, and
others at interest in the cotton sit
uation. The Georgia division of the
American Cotton association, which
indorses the plan, has been co-operat-
ing with him. Mr.. Walker stated
Saturday that the plan was meeting
with general approval, and he eX-
pected to see emergency cotton bond
ing corporations launched in several
counties in Georgia in the near flu
ture.
In the meantime, the information
comes to him from South Carolina,
Mr.. Walker further stated, that the
Georgia-Carolina plan is going for
ward there with strong support hay
ing received the Endorsement of the
American Cotton association and OF
the South Carolina branch Of the
same.
Commissioner Browns letter to Mr..
Walker was as follows:
examination of the plan put for
ward by yourself and others to form
local companies for the issuance OF
emergency bonds on cotton.
"As / understand it. the plan con-
templates the formation by farmers,
merchants, bankers and others at
interest in a county, of a cotton bond
ing company; which company would
issue emergency bonds running for
term of six months, underWr1tten py
the bonding company, secured py the
warehouse receipt of the cotton In
storage and insured, and further Sc
cured by the owners note; THESE
bonds in small denominations to be
then used by the owners OF the cot
ton to liquidate their pressing obl1ga-
lions, and to be used by their cred
itors to liquidate obligations OF
higher creditors; the cotton to be re-
deemed at maturity for the race
"The advantages of this plan, as
they present themselves to me, are as
follows: :,
81. Producers of cotton would be
enabled to meet pressing obligatlons'
and their creditors to do likewise,
bonds would be passed along from
one to another as a current meoluHi
of exchange.
"3. BY such, plan, we would help
ourselves Immediately; we Woulo
demonstrate our ability to meet a
great economic problem In pusl-
nesslike way.
"a. The amount Of bonds to be
issued upon the cotton of any par
ticular owner would not be fixed, but
would be variable and elastic, thlS
question being left in the hands OF
the approval committee OF eacn local
company, who would naturally ana
nenassari1v take into consideration
the solvency and financial RESPONSE
bility of each particular owner, mas
much as all members of the bonding
company would be jointly l1aple 1or
| the redemption of the bonds at par
upon maturity.
"This last mentioned point would
stress particularly, as IT. II s Sxhn1s
plan. BY the exercises OF due pre-
caution in this respect, every oondlhg
| connany through a carefully Selecteo
annroval committee should be able 70
| insure the redemption OF its ponos
ak maturity. 1t is reasonable TO sup.
| pose that no bonding company VIZ" 49,
over-bond the cotton Of its COM
%The plan offers the. hope of i'm
mediate and substantial relief. COT
ron is now quoted on the exchanges
at a price far below the cost OF pro-
duction. There is every reason 10
believe that the price Will advance
substantially within within SIX con,n uu.ies;
throughout the south, in my Judg-
ment, would go far towards restoring
a fair price,"