The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-04-06
GOVERNMENT PLANS
FOR COTTON EXPORTS
Program Well Under Way as Result
Of Meeting in Washington.-
Southern Bankers Attend
Conferences.

Washington, April 5.-Formulation
of a program designed to aid the
cotton interests in reviving export
trade was begun at q conference here
today between representative bank
ers from 12 Southern states and Sec
retaries Hoover and Mellon as well
as Governor Harding Of the federal
reserve board and directors of the
war finance corporation.
Although no formal .actiont was
taken 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
eventually be 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 fin
ancial strength of interests in the
cotton crop. Around these, it was
proposed, would be erected machin.
cry for the extension of credit to
stricken European states where long
term credit is necessary and where
there is no market unless the export
er is willing to await conversion Of
the raw product into finished mer-
chandise. -, - - 81 ~
The discussion was frank and Coy
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 it's origin among those in
terested and not in the government.
"Genuine Preyress'" Made;
= After the afternoon session, Man
aging Director Meyer of the finance
corporation under whose auspices the
conference was held, declared 'sgenu-
inc progress" had been made in the
direction of a plan which ultimately
would restore life to the cotton bus
mess. He warned, however, that the
situation could not be remedied over
night and that only through COM
bined action Of those interested in
connection with such financial help
as the government could give in the
shape of loans would better condi-
tions prevail in the cotton belt.
While the conference today did not
go into 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 fin
ance board SO that their activities
would not be curtailed. "... r.
Organization of export corpora
tions under the Webb-Pomerene and
Edge acts also was urged upon the
bankers. Secretary Hoover espe-
cially indicated that in his belief the
cotton interests should proceed un-
der those two acts and with he as
sistance of the war finance corpora
ton be able to establish successful
export trade. s. 49,. ~.
Secretary Mellon suggested ware
house deposting of cotton and some
other non-perishable products, on
which loans might be obtained from
the government as q means Of en-
abling the producers to continue OPP
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 market would be available.
Reduction in Acreage.
Several bankers urged a reduction
in cotton acreage until the world con-
sumption catches up with produc-
tion. This brought from Governor
Harding the assertion that there was
no actual overproduction but a de-
crease in the buying power Of the
European states into which Ameri-