Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-04-05
SOUTH'S BANKERS
AND u. S. LEADERS
PLAN COTTON AID
Continued From Page ~

of the war finance corporation; Gov
! ernor Harding, of the reserve board;
| the comptroller of the currency, and
| E. G. Montgomery, of the bureau of
markets. The latter told the confer
ence that record-breaking world
| carry-over" of cotton faced the in
| dustry and a normal crop this year,
in his opinion, would give more than
| 100000 bales for sale next fall.
! This would be far above the con-
sumption requirements, he said.
Atlanta Represented
Bankers present at the conference
included: Robert F. Maddox and John
borne, Archibald Kains and P. H.
Saunders, of New Orleans; ]. S.
Reese, of Pensacola; Tom o. Smith,
of Birmingham; c. S. Fitzpatrick.
president of the Arkansas Bankers
association; Oscar Newton. of Jack
Louis; H. c. Mcqueen, of Whining
ton, n. c.; D. N. Fink, of Muskogee,
Okla; r. G. Rhett, Of Charleston, and
J. Pope Matthews, of Columbia, S.
c.; former Governor Manning. South
Carolina; T. R. Preston, Chattanooga;
Scott, Houston; r. E. Harding, Fort
Worth, and Nathan Allen, Dallas,
Texas.
Mr.. Claiborne, vice president of the
Whitney Central National bank, OF
New Orleans. was the first banker to
address the conference. With a
thirteen million bale crop this year"
said Mr.. Claiborne, land the carry
over of seven or eight millions, it
will mean 21,000,000 bales of cotton
on hand this year. This is far above
the demand and will be an absolute
calamity to the south. The produc-
ton of such a crop would be ruinouS
a nd the nnth must NOT nrO6Ilcp more
than seven or eight million bales this
year AS a banker. l believe it is the
duty of bankers to advise our GUS
toners that they cannot spend our
money and their time in producing
something that means a great loss.
If it were ma2ufacturer wanting
money, you would not lend it to him
if you knew he would lose money on
his venture.
Danger of Decentralization
"A cotton. crop OF 2l,OOO,00o- bales
this year, counting new and carry
over cotton, means a price of seven
or eight cents a pound and possibly
a revival of the 'buy-a-bale' move
ment of 1914. This government
should lend and take a stand to see
that cotton is not produced at a price rice
that means calamity to great sec
ton of the country, the south"
Mr.. Claiborne said this was not
in the interest of keeping high
price on cotton, but was a self-de-
Tense action because a big crop means
within the next few months prices
far below ten cents per pound, ana
that oVerproduCtion was the great
danger confronting the country in
this period of worldwide reduction
in consumption demands.
Eoover's Views
Mr.. Hoover, the secretary of COM
merce, said the government had at
this time no panacea to offer the
agricultural industry, but the con-
ference had been called because 1t
was believed that collective thought
would be useful and that a program
might be worked out whereundel
federal government agencies might
he employed to ameliorate present
distressing conditions. The cot
ten problem today" said Mr.. Hoover
lis primarily one of exports and also
extended credits beyond the normal
abilities of merchandise and bank
ing. We might as well face the
fact that there will be a reduced
consuming power for some years to
come, and we must feadjust our
selves to that condition, but we
should find some method to main
tain the industry and stable condi-
crop, under new conditions"
This broken link in the cotton
chain,' Mr.. Hoover said, lis the
link of credits. and the mend
ing of this link, so far as possible.
was the object of the conference
called here today. The situation. he
emphatically said, was beyond the
only be helped by combined action"
Harding Deeply Interested
At 1 o'clock today, the visiting
southern bankers and others attend
ing the cotton conference were re-
ceived by President Harding. The
of his interest in the betterment
of agricultural conditions and ex
pressed the hope that the conference
would arrive at a solution. He prac-
tically assured his callers that any
program agreed upon by Secretary
Hoover, the war finance corporation
and the bankers would have the I'M
qualified support of the administra
ton.
AS encourageme to combined ac-
| ton of the producer, the exporter
and the consumer. Mr.. Hoover cited
| the Webb-P omerene act, the Edge
act and the law creating the wal
| finance corporation. With proper
cooperation of the producer and
southern banker, Mr.. Hoover sug-
gested, these three government
agencies might be employed.
| - VI. montgomery, Oh the 1eu6rdI
department Of agriculture, said his
figures indicated a world carry over
OF cotton this year of ten to eleven
million bales.
The domestic carryover, he later
| explained would be 100000 or g..
100000. These figures, he said, were
far above the normal and were
| brought about by the reduced con
sumption power of Europe. The nor
| NAL carryoVer, he said, was 1000.
| 600 to 100000 only. Director Mey.
| er, of the finance corporation, asked
| Mr.. Montgomery if much Of the
carryover did not consist of low
| grade cotton. He said this was true
! although there was considerabl
| carryoVer Of the higher grades this
| year.
Favors SO Per Cent Cut
I Angus Mclean, another finance
! corporation director, said he agreed
| that there must be a material reduc
ton in acreage this year. This re
duction in cotton acreage Mr.. Nc
| Lean said, should be approximately
so per cent
81 grow cotton in North Carolina,
, said Mr.. Mclean, "and | am putting
in a reduction of 50 per cent in acre
! age and more than so per cent il
fertilizer, but I do not think even a
| that we can raise at a profit thi!
year. Why farmers will plant a nor
NAL crop at a time like this is hare
to understand, but it is partially eX
planned that many of them are ten
ant farmers, and if they do not plant
these tenant farmers will have moth
ing to do" .......----.