Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-12-14
Haden5 Suggestion, Thar
Farm CredltS Be Made
EASIER. Ar0uSey MtereSt

The farmers obligations mature
In the fall when his cotton crop
is harvested. To pay his obligations,
he must sell his cotton. The system
forces him to dump his cotton on
the market in very short period.
Charles J. Haden, the wel1-known
Atlanta lawyer and business man,
who takes keen interest in. civic
affairs, suggests a change in the
farmers credit system. He suggests
that the notes of the farmer cover
ing fertilizer and supplies be di-
vided into four instalments extend
ing over a period of six to nine
months, thereby giving the cotton
grower such a leverage that he
could dominate the price of his
staple"
Mr.. Haden recently was invited
to address the Cincinnati Associa-
| ton of Credit Men on the subject
of Cotton and Credits" His sug-
gestion Of dividing the cotton grow
er's obligations into installments
was presented in that address and
The suggestion was repeated last
week to the Atlanta Association Of
Credit Men in a short abbreviation
of the Cincinnati address.
Mr.. Haden argues that cotton is
the greatest security on earth, yet
is driven to the market by the
whip of a cruel credit system, while
the manufactured products of cot
ton are sold to merchants of for
eign countries on nine and twelve
months time"
STA femant nv Mr. HaHnn of the
proposed plan of dividing the far
mer's notes into instalments was
prepared by him for The Journal. It
is as follows:
cit requires twelve months to
spin the cotton crop. Between the
picking time and the day of actual
spinning, somebody must carry it,
The custom has been that the mid
die men, usually the Spectator and
the warehouseman, carries the crop
Liverpool, Hamburg and Havre. The
spinners rarely keep on hand more
than few weeks supply.
For many years after the Civil
war large part of the southern
cotton crop was consigned by the
exporters to commission houses in
Europe without any contract price,
and the commission house across
the sea placed the cotton on the
market to the best offer and re-
house not knowing the price until
the account of sales and the check
came back.
Crude and cruel as it now seems
to trust IS, ship, loads on n, the buying
the bears, the present system is
barely more humane. The credit is
extended payable as quickly as the
crop is gathered in October and
November. forcing cotton, on the
market, like a deluge, the entire
days.
Suppose the manufacturer of
shoes or clothing was forced
by imperious custom to sell his
entire years product in sixty
days and the buying public knew, of
his pred1camCnt. CoGId the manufac-
turer hope to get a remune-N +iv~
price under a forced sale? But cotton,
under whip and spur Of notes given
for money, supplies and fertilizer, is
driven out of the house of it's friends
into the bands of the buying bears
as rapidly as it can be taken from
the gin, and the slaughter is con-
summated in sixty days.
Products Get Long Credit
when this raw cotton has been
manufactured in Europe it is sold to
the merchants in India. China and
South America on nine and twelve
months credit.
eff two years Of Accent cotton
has not put our growers on cash
producing basis, so that the product
when made is theirs to hold indie
pendent of creditors, then it would
seem tha> the best thing to do is to
provide a system Of credit that will
enable them to carry raw cotton,
selling it gradually through twelve
months, in response to spinners' de-
mand, the normal way. The system,
once established. would work no
harm. as creditor and debtor and all
others at interest would adjust theii
plans to meet changed conditions.
"If notes given by cotton growers
| for money, supplies and fertilizer
were made to mature at different
dates. one-fourth in November. one
| fourth in February, one-fourth in
May and one-fourth in August, even
| if the longer periods necessitated
some increased price. or interest bur-
| den, it would give the growers such
q leverage that they could dominate
| the price. 1t would be a cushion
| against the shock of a. stampeded
| market. The agony of the present
| hour is that all debts have become
| due on the universal southern pay
| day. the old-time middle men are
| financially unable to carry the crop,
| and cotton, the greatest collateral on