Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-14
MEYER OUTLINES
NEW SCHEME: To
HELP SELL COTTON
BY THEODORE TTLIER
The atlanta Journal News Bureau,
623 Riggs Building,

"ASH1NG ON, july 4o.-EuSene
Meyer, Jr., managing director of the
war finance corporation, issued a
statement here Tuesday night, out
lining the adoption of a new policy
by that corporation with regard to
advances to American cotton growers
agricultural interests and obtain ag-
ricultural credits in the expectation
Of surplus farm products.
Director Meyer uses the: advance
of 100000 to cotton cooperative
association of the south to Illustrate
the new purposes of the finance COR
poration to aid exports.
In his formal statement Mr.. Meyer
said:
THE advance of $4,000, 900 to the
Staple Cotton Cooperative associa'
ton, of Memphis, approved recently
by the war finance corporation, marks
the adoption of a new policy by the
directors of the corporation. The
corporation, which was assisting in
financing the expectation of domestic
products by banking advances TO
American exporters and American
bankers, has steadily broadened it's
policy in order to meet the present
emergency which exists in the mar
keting of agricultural and -, other
commodities.
AT first, advances were made to
exporters only on cotton actually ex-
ported under definite contracts of
sale, but later, following conferences
with cotton exporters and bankers in
-. H,,11
and New York, the corporation an
nounced it's readiness to consider APP
piications in connection with the eX-
portation of cotton on any one of the
three following plans:
Il. For prompt shipment against
deferred payments.
%. For future shipments within
reasonable time against either prompt
or deferred payments, after arrival
in foreign countries where goods
were under definite contract for sale.
"3. For prompt shipment to ware
houses in foreign distributing points
Ito be held there on account of the
American exporters and bankers for
marketing out of warehouses.
THE advance to the Staple Cotton
Cooperative association carries
these plans a step farther. By its
out of the 100000 bales OF long
staple cotton pledged as security, it
will export within one year a quanti-
ty sufficient to repay the full amount
of the loan out of the proceeds of
export sales, the cotton to be held in
American warehouses until the time
is favorable for export.
THE advance represents approx
mately one-half of the present mar
ket value of the cotton and will run
for a maximum period of one year,
but may be repaid sooner, as the cot
iS pYnnrta6 and sold
THE Staple Cotton Cooperative
association comprises within It's
membership many of the leading cot
ton planters in the Delta district of
the Mississippi. In fact, the owners
and producers of 100000 bales of
long Staple cotton, out of total av-
erage yield of approximately 100000
bales, have agreed to sell their cot
ton through this organization. The
action of the corporation will enable
the association to market its cotton
in an orderly way during the current
cotton year without unduly forcing
sales.
eff a similar plan, could be carried
out in connection with other types
of cotton, it would be helpful in re-
leving the situation. Properly financ-
ed, it would insure the orderly mar
keting of the crop and make it un
necessary for the producers to dump
on the market unduly large quantl-
ties of distressed cotton within a
short period. But it would do more.
1t would help to stabilize the market
so that the consumers of cotton
would perhaps feel justified in re-
plenishing their stocks, which, in
most cases, are much lower than
usual at this season of the year.
1.-THE war finance corporation
stands ready to assist other organi-
cations as we'll as cotton exporters
and banking institutions, in the same
way that it has assisted the Staple
Cotton COOPERATIVE association, pro-
vided the advance can be made upon
a sound business basis, and provid-
ed also that the corporation may be
definitely assured that the advances
will be repaid from the proceeds OF
export sales within year.