Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-19
Wonderful Exhibits
Draw Thousands TO =
Southeastern Fair
SENATOR SMITH
TELLS FARMERS
TOHOLDCOTTONl

| Senator Hoke Smith and Senator
William J. Harris are at home again
from Washington; that is, Senator
Smith is in Atlanta while Senator
Harris left the city after breakfast
Monday morning to go to Cedartown
for the day. Senator Smith was at
his headquarters in the Piedmont
hotel, where he discussed the cotton
situation in emphatic terms, declar-
ing firmly his advice, pending a cor
rection of the Federal Reserve Board
that the notes given by cotton fac
tors for advances to farmers cannot
be rediscounted at the Federal Re-
serve Bank. was that not a bale of
cotton be sold for the next sixty
days, at the least.
Better keep the cotton raised this
year and raise none next year." said
the senator, than sacrifice it at the
present price"
In Touch With Federal Board
Senator Smith has been closely in
touch with the board during the re-
cent critical juncture, and while he
| characterizes the recent ruling of the
board as astonishing" he believes
board that It Is wrong in this con-
structton of the reserve act.
Senator Smith said:
while the statement published by
the Federal Reserve Board yester-
day morning was not all it should
have been, the members of the board
assured the representatives Of farm
ing interests tnat paper secured by
agricultural products would be re-
discounted at federal reserve banks
as freely as ever before. The FEEDER
al Reserve Board should give their
minimum rate of interest on all re-
discounts of paper secured by agri-
cultural products. Indeed, the pres
sure from all over the country upon
the board to lower all rates of in
terest will, L nope, be so great that
this also may speedily be done. =
ton factors from different parts Of
the south. The board had recently
ruled that notes given bys cotton
factors for advances to farmers can
not. under the federal reserve act.
be rediscounted at federal reserve
banks. This ruling is astonishing.
1t is an entire misconception of the
law. The hearing was to show why
this ruling should be changed. 1
believe it will be possible to satisfy
the board that this construction put
upon the federal reserve act should
be corrected. and that factors notes
must be rediscounted by federal re-
ser, banks.
Keep Cotton Sixty Days
TN the meantime, / would urge
that not bale of cotton be sold.
The present price of cotton is too
low even under the cheapest oppor-
TURTLES for production. Better keep
the cotton raised this year and raise
none next year than sacrifice it at
the present price. Not bale of cot
ton should be sold for the next six
tv days. There can be no orderly
marketing unless the. buyers seek
to purchase, and this condition has
ceased and cotton must be held or
the business interests of all the cot
ton states sacrced.
I'VE should all appreciate the in
formation brought to the attention
of the public by Comptroller of the
Currency John Shelton Williams
The immense resources of the banks
to which he refers are most encour-
aging, The federal reserve board
should lower discount rates and all
interest charges would then be re-
duced. This would greatly encour-
age and stimulate all lines of bust
ness"