The Union daily times. [volume] (Union, S.C.) 1918-current, 1921-07-14
Sc PER COPY
TO DISCOUNT ALL
COTTON PAPER

: Representative w. F. Stevenson
( Yesterday sent the following wire
from Washington to The State:
: Have seen federal reserve board
and they have instructed the federal
) reserve banks in the cotton states to
! alscount all cotton paper presented
by member banks when paper is Sc
cured by sufficient cotton, and the
board has authorized the banks to
give out public statement to this
effect
j. Pope Matthews, president of the
Palmetto National bank, when asked
yesterday what effect this action of
the federal reserve board would have
on the financial situation, said: This
action will tend to stimulate and
support the banks in the cotton belts.
and will tend to allay any panicky
feeling; the knowledge that the fed
eral reserve board is lending it's sup
port in efforts being made to bring
about orderly marketing cannot but
be helpful, and encouraging to all
interests. Such an arrangement as
outlined is now in effect as to Lib
ertv bonds"
j. Skottowe Wannamaker of ST.
Matthews, president of the American
| Cotton association, when informed of
the message from Representative
Stevenson and asked for comment
on it's effect, said that it meant the
saving of millions of dollars to the
farmers of the South, as, instead of
selling their cotton for less than
one-third the cost of production, they
will be enabled to hold their cotton
until confidence is restored and the
markets opened. Mr.. Wannamaker is
of the opinion that relief from finan-
cial strain in many sections will be
felt as a result of the action of the
, reserve board and that pressure will
be eased.
Mr.. Wannamaker's statement fol-
lows:
Through special committees of
. the American Cotton association, the
: president of the United States, the
y secretary of the treasury, the gov
!, ernor of the federal reserve board
:, y and the comptroller of the currency
y were furnished with complete
y synopsis of conditions in agricul-
( tural sections of the cotton belt and
special request was made that the
federal reserve board announce that
Z it would loan $100000,000 on cotton
o stored and insured for 80 per cent
IL of the market value, such loan to be
5: made through member banks and
l. non-member, banks of the federal re-
% serve system and to be renewed
lions s Bshss Ssins sSisssa S&s 81
r out that the federal reserve districts
in the South could rediscount such
Is paper with the other federal reserve
* districts. ,H. ., ".s% NE
IS Senators and congressnien .of, the
re South and West practically unitedly
co-operated with and Soined in this
a request and it twas indorsed by thou
sands
y throughout the agricultural sections.
II 1.-The national headquarters of the
p American Cotton association was
notified this afternoon that the re-
: quest had been granted even in more
o liberal terms than anticipated. In
t stead of limiting the amount to
: $lOO,OOO,O00 all cotton paper present
S ed by member banks will be redis-
e counted for 80 per cent of the market
value of the cotton through 1921 or
S until market conditions become nor
e mai. Among the kilograms received
I conflrmlng this was the one from
n Representative Stevenson of South
D Carolina"
Will Save Millions.
"This means that 80 per cent of
l the market value can always be
granted on cotton as special redis-
r counts and that the banks can redis-
count this paper with the federal re-
, serve in the Same way in which Lib
erty Loan bonds were handled with
out being debarred on account of the
amount of their credits.
ut also means the saving of mil
lions to the farmers of the South as
instead of selling their cotton for
less than one-third the cost of pro-
duction they will be enabled to hold
the same until confidence is restored
and the market opened"
i The American Cotton association
has lust filed requests through con-
gress and the crop reporting bureau
of the department of agriculture that
a special investigation be made as to
the use of nitrate of soda, additional
acreage abandonment since the last
government report. ravages of the
boil weevil and that the same be
shown in the August report.