The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-04-08
GOVERNMENT PLANS
COTTON EXPORTS
PROGRAM UNDER WAY RESULT
OF WASHINGTON MEETING
Committee Named to Continue Study
of Schemes to Create Local or
Sectional Banking Syndicates

OF SCucEucS 10 S1eoSS AoCoi OF
Sectional Banking Syndicates
Washington, April 4.-Formulation
of program designed to aid the cot
ton interests in reviving export trade
was begun at conference here today
between representative bankers from
IL Southern states and Secretaries
Hoover and Mellon as we'll as Govern
or Harding of the federal reserve
board and directors of the war finance
corporation.
Although no formal action was tax
en- today, propositions for govern
ment aid in financing cotton exports
were suggested and tentatively in
dorsed. The programs initiated at
this time, especially relief to the cot
ton growers, it is expected, will even
tually he broadened to apply to the
other farm products.
A committee was named by the
conference to pursue further studies
of plans to create local or sectional
banking syndicates which would serve
as agencies to combine the financial
strength of interests in the cotton
crop. Around these, it was proposed
would be erected machinery for the
extension of credit to stricken Euro
pean states where long term credit
is necessary and where there is no
market unless the exporter is willing
to await the conversion of the raw
product into finished merchandise.
The discussion was frank and Gov
ernor Harding Of the federal reserve
board took occasion to assert that the
cotton growers lacked confidence and
that any relief that could come must
have its originsamong these interest
ed and not in the government.
: Genuine Progress" Made
After the afternoon session, Man
aging Director Meyer Of the finance
corporation under whose auspices the
conference was held, declared. "genu-
inc progress had been made IN the
direction of a plan whion ultimately
would restore life to the cotton busi-
ness. He warned, however, that the
situation could not be remedied over
night and that only through combln-
ed action of those interested in con-
nection with such financial help as
the government could give in the
shape of loans would better conditions
prevail in the cotton belt.
While the conference today did not
20 into the details of the program, it
is understood in general to be the pur-
pose to use the collective resources
in banks where cotton is tied Up, the
banks aiding in the financing of the
exports, it was pointed out, could OBJ
tain further funds from the war IL
nance board 80 that their activities
would not be curtailed.
Organization of export corpora
tions under the Webb-Pomerene and
Edge acts also was urged upon the
bankers. Secretary Hoover especial
ly indicated that in his belief the cot
ton interests should proceed under
those two acts and with the assistance
of the war finance corporation be able
to establish successful export trade.
Secretary Mellon suggested ware
house depositing of cotton and some
other non-perishable products, on
which loans might be obtained from
the government as a means OF en-
abling the producers to continue op-
erations. He said the copper produ-
GERS had resorted to that plan when
they were confronted with no market
for their mine output. Money bor-
rowed on the warehouse receipts was
being used, he explained, to keep the
mines running in the hope that even
tually a market would be available.
Reduction in Acreage.
Several bankers urged 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
overproduction but decrease in the
buying power of the European states
into which American commodities
formerly went. The job of the cotton
exporter and his financial backer' MI
Harding added, was to recreate the
buying power by supplying some cred
it on sound economic lines.
The situation in Europe as viewed
bv the reserve board, he said, needed