The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1921-04-06
SOUTHERN BANKERS AND
GOVERNMENT AGENCIES
TO AID COTTON TRADE
Genuine Progress Is Made, Says
i. Managing Director of War
Finance Corporation.

Washington, April 4.-Formation
of a program designed to aid the cot
ton interests in reviv1ng export trade
was begun at conference here to-
day between representative bankers
from twelve Southern States and Sec
retaries Hoover and Mellon as well as
Governor Harding of the Federal Re.
serve Board and directors of the War
Finance Corporation. ,.. -.
Although no formal action was tax
en- today propositions for government
aid in financing cotton exports were
suggested and tentatively indorsed.
The program, initiated at this time
specifically for giving relief to the
cotton growers, it is expected, will
eventually be broadened to apply to
the other farm products.
committee was named by the con-
ference to pursue further studies of
plans to create local or sectional bank
ing syndicates which would serve as
agencies to combine the financial
strength Of interest in the cotton crop.
Around these, it was proposed, would
be erected machinery for the extern
sion of credit to stricken European
States where long term credit is nee
essary and where there is no market
unless the exporters is willing await
conversion of the raw product into
finished merchandise.
The discussion was frank and Gov
ernor Harding took occasion to assert
that the cotton growers lacked con-
hdence and that any relief that could
come must have it's origin among
those interested and not in the gov
ernment.
After the afternoon session, Manag-
ing Director Meyer of the Finance
Coro pr..,iOn, under whose auspices the
conference was held, declared genuine
progress had been made in the di-
rectlon of plan which ultimately
would restore life to The cotton bust
ness. He warned however, that the
situation could not be remedied over
night and that only through combined
action of those interested in connec-
tion with such financial help as the
government would give in the shape
of loans would better conditions pre-
vail in the cotton belt.
While the conference today did not
go into details Of the program, it
is understood in general to be the
purpose to use the collective resources
of banks in sections where cotton is
tied up. The banks aiding in the fl
nancing of the exports, it was pointed
out, could, with their own paper, OBJ
tain further funds from the War FL
nance Corporation so that their ac-
tivities would not be curtailed by
lack of money.
Organization of export corporations
under the Wcbb-Pomerene and Edge
acts also was urged upon the bankers.
Secretary Hoover especially indicated
that, in his belief, the cotton inter
ests should, under those two acts and
with the assistance of the War Fin
ance Corporation, be able to establish
a successful export trade
Secretary Mellon suggested ware
house dcposting of cotton and sorne
other non-perishable products, on
which loans might be obtained from
the government, as a means of ena-
bling the producers to continue opera
tions He said the copper producers
had resorted to that plan when they
were confronted with no market for
their mine output. Money borrowed on
the warehouse receipts was being used
ne explained, to keep the mines run
nlng in the hope that eventually a
stored stocks.
Several bankers urged a reduction
in cotton acreage until the world con-
sumption catches up with production.
This brought from Governor Harding
the assertion that there was no actual
over-production, but a decrease in the
buying power of the European States
into which American commodities for
merly went The job of the cotton ex-
porter and his financial hacker. Mr..
Harding added, was to recreate the
buying power by supplying some
credit on sound economic lines.
The situation in Europe, as viewed
by the reserve board, he added needed
staDiiization, and he added that one
way to aid in this stabilization was by
ass isting those countries in manufac.
turing.
A committee was appointed to study
the local situation, and includes:
Robert F.. Maddox, Atlanta. chair
man; ID. M. Armstrong, Memphis; :, Ma
than Adams, Dallas; Charles Clai-
6orne, New Orleans, and Richard I.
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