Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-11-01
COTTON GROWERS
HEAR HOKE SMITH

BIRMINGHAM, Ala. Oct. 81
Speaking here Saturday before the
American Cotton association in an
nual convention, ex-senator Hoke
Smith, of Georgia, severely criti-
cized the refusal of Secretary Hous-
ton to put in full functioning opera
ton the war finance corporation
during the twelve months period be-
ginning in April, 1920, and the fed
| eral reserve board for contracting
the currency and curtailing credits
during the same period.
Ex-senator Smith emphasized the
fact that one-fourth of the popula-
ton of the United States is directly
dependent upon cotton for support,
and that their prosperity affects not
only the cotton belt, but the nation
as a whole. To curtail the buying
power of the cotton belt, he showed,
curtails by one-fourth the national
| buying power of manufactured prod
ucts. He showed that cotton ex-
ports have maintained the nation 8
balance of trade for the past fifty
years.
Cotton growers, he said, are en-
titled to helpful legislation at the
hands of their government, the same
as growers of other farm products,
but legislation, plus intelligent adj
M nj StY fior1 of ti0y1 not
alone a solution Of their problems.
Organization and cooperation among
| the growers Of cotton is essential to
success, and "every individual cot
ton grower has personal RESPONSE
bility.'
Congress in the past few years has
enacted much legislation for the
! benefit of the farmers, the former
| senator showed, and in this connec.
| ton mentioned the act creating the
federal reserve system and the act
| creating the war finance corporation
/ He showed wherein the provisions
| of the federal reserve act were made
| specially helpful to the agricultural
| interests. He showed wherein the
| special authority to assist in the
Raps Houston and Board
But the federal reserve board in
| the period above mentioned, declar.
ed ex-senator Smith, administered
| the system in such way las to fail
to meet our emergency, and acted
| unwiSely, and Improperly admins
tered our laws" Likewise, Secre
! tary Houston refused to allow the
war finance corporation to function
at a time when assistance for ex
ports was vitality needed by reason
| of the impoverished condition of the
| European countries growing out OF
| the war.
| II do not claim" said he, that
! the continued operation Of the war
finance corporation during the fall
| and winter of 1920-21 could have
| stopped the downward tendency OF
! prices, nor do I claim that an ex
| tension of credits by the federal re
serve board could have prevented 6
downward tendency, but l have nc
doubt that the course pursued in
! creased largely the destruction o!
| values, and that this course de
| serves the SeVereSt condemnation
1t was not until March 4, wher
the Republican administration tool
charge, the former senator con
tinued, that the war finance corpor
alton really did anything" al
though congress had passed a reso
luton in December, 1920, directing
Secretary Houston to revive it, ant
had passed the resolution over Presi
dent Wilson's veto. Under the lead
ershrip of Eugene Meyer, managing
director of the corporation" he con
tinued, "a great service has beer
rendered towards stimulating the ex
ports of raw material"
The cotton grower, declared Elk
Senator Smith, could fall into NJ
greater error than to suppose tn
only thing he needs is an oppor
tunity to borrow money to hold cot
ton. What he needs lis a consun
ing market which will spin and man
ufacture his yearly product, leavini
little or on surplus to be CARRIE
over from one year to another"
Conditions in Europe
Since foreign countries have a.
ways consumed one-half or more o
the cotton produced here, the fol
mer senator showed, European cor
ditions directly affect the price an
"reach down into the pocketbook o
the cotton grower" Restoration Q
peace and economic progress in Ell
rope is therefore, he said, supremel
important to the cotton belt.
; The south, he declared, ought t
= be and can be, the richest agricu
tural section of the world, but
: will never be able to reach that goa
without intelligent limitation of CO.
= ton production to the worlds d.
8 mand and without orderly marketin
in monthly instruments.
7 1--WE must organize" said he, 18th
: farmers, merchants and bankers c
= the cotton growing states into
: great and continuous co-operativ
/. movement to curtail cotton produ'
3 ton to the worlds demand. and
raise vast quantities of foodstuffs.
, All of the food supplies consume
in the south should be produced
the south, he said, and organize
marketing systems should be forme
to dispose of the surplus at prof
able prices. 1t is an old story. !
admitted, but must be continual
preached until it is practiced. F
urged the continuance and strength
| ening of the American Cotton ass
citation and spoke Of the future wit
: optimism and confidence.