The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1921-04-07
MCLEAN TAKES GLOOMY VIEW
Former Treasury Assistant Says Eu-
rope is Not Able to Buy
Our Cotton.


home town Lumberton, and while
there gave The Robesonian an inter
view which may be of interest to
Herald readers, many of whom prob
ably know Mr.. Mclean personally:
Mr.. A. w. Mclean after a short
visit to Lumberton returned last
night to Washington to resume his
Official duties with the War Finance
Corporation. A Robesonian reporter
asked Mr.. Mclean if he would not
make statement in connection with
yesterdays Washington dispatches
to the effect that he and the other
members of the War Finance Cor
poration are trying to do something
to aid in the expectation of Ameri-
con cotton. In reply Mr.. Mclean
stated:
At conference on Monday the
directors of the War Finance Cor
pcration, after consultation with
Secretary of Commerce Hoover and
Secretary of Agriculture Wallace,
decided to arrange conference with
few bankers from each of the cot
ton growing states on Monday, April
4th, for the purpose of discussing
with them plans to look into the ex-
portation Of cotton to European
countries. The War Finance Corpora
tion has been authorized by law to
extend cf,dit to American exporters
or American bankers in connection
with the expectation of cotton and
other products to foreign countries.
The corporation cannot, however, un-
der the law extend credit to foreign
concerns. Credits must necessarily
be extended to American exporters or
American bankers. No advances can
be made until the sale of the pro-
ducts has been arranged IN the for
eign countries. OF course, cotton can
not be exported except by ship-loads.
II is manifestly impossible for in
dividual farmers or even small group
OF farmers to do this within the pro-
visions of the act of Congress and
obtain the financial relief direct, be-
cause they cannot arrange the con-
tract for sale on the other side, and
Tor the further reason that ship
loads of cotton are required. The
War Finance Corporation, therefore,
II 1t does anything in the matter, is
bound to deal with cotton exporters
o. large banking groups who can
provide for sale of large quantities of
cotton and who can provide for the
movement in ship-load quantities. So
of the South have shown very little
disposition to take advantage of the
act to help out the general cotton
situation. The War Finance Cor
poration hopes to lay before the ex-
porters and bankers plan that will
encourage them to undertake the
enterprise. If the farmers and others
interested in cotton were organized
into corporations or associations in
the same way that the California
fruit growers are organized, there
would be no trouble in arranging
these credits. The trouble with the
Southern farmer is he is not or
ganiZed in a financial way 1t is
impossible now, in a short time, to
provide these organizations except
possibly through some of the large
banks that are carrying cotton and
which, of course, are interested in
exporting cotton.
ASke6 as to the general demand
in Europe for cotton, Mr.. Mclean
stated that the conditions are not at
ali favorable. He stated that con-
fidential advices coming from foreign
countries show that while there is
need for cotton in these countries,
they are wholly unable to buy on ac-
count of their deprecated currency,
and their general lack of security.
He says in a great many of the coun-
tries in Europe the conditions are
very much like those which existed
here at the close of the civil war, and
that the population Of these coun-
tries are spending every available
dollar for food stuffs and therefore
are unable to buy clothing or raw ma
lC rnh ;,,t.~
the manufacture of clothing. 1t also
appears, he says that large supplies
of clothing held by the various war
ring countries at the close of the war
for the use of their armies have been
sold at extremely low prices; that
people are using this clothing until
they are able to buy new clothing,
that it will probably take a year or
more to exhaust this surplus of old
clothing and clothing material now
on hand. Mr.. Mclean further stated
that the prospects of higher prices
for cotton are very gloomy, that there
Is such a big surplus of cotton on
hand in the world now, that if any
considerable crop is produced this
year the price may go to four or five
cents pound. The only thing that
could save the situation would be for
the southern farmers to plant no
cotton at all this year. This of course
is impracticable for the reason that
tenants and others living on farms
must have something to do. Mr..
Mclean stated that from information
he had received it looked as if Sou
thern farmers were going to reduce
the acreage very little and they ought
to be warned now that this is Sc