Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-04-12
{. G|lYTnN MI FNn0N
WRITES To HOOVER
ON COTTON PROBLEM

Suggesting the valorizat;on Of cot
ton in the same manner that Brazil
valorizes it's coffee, as the best
means at hand of remedying the
stagnation in the cotton market and
preventing business disaster in the
south, Secretary of State s. G. Nc
Lendon has written to Herbert Hoo
yer, secretary Of commerce, urging
the advisability of such a plan.
The secretary of states letter fol-
lows:
'Honora BILE Herbert Hoover,
Secretary of Commerce,
washington, D. C.
MY Dear Sir:
1.-THE state of Sac Paulo is about
the size of Georgia and South Caro-
lima. 1t produces about two-thirds
of the worlds coffee crop. Twelve
years ago there was q sudden and
unexpected increase in the crop,
which was so large that producers,
in their mad competition with one
another to sell, were completely at
the mercy of buyers. who took coffee
at whatever price they might be
willing to pay.
SIN this situation the coffee plant
ers were utterly ruined. The state,
however, came to their rescue and
adopted and put in operation Il valor-
ization scheme which saved this
great industry from utter ruin. The
state Of Sac Paulo, at a price fixed
by itself which would save these
planters from ruin, purchased $1,000
900 bags of coffee and withdrew it
goo In D1rIy hi r.
ed, the coffee planters were enabled
to market the balance of their crop
and the industry was rescued from
destruction.
1.-The state paid out about $780,
100000 and stored this coffee in New
York, New Orleans, London, Berlin
and Paris. The state was compelled
to prepare itself to hold this until
market conditions and crop condi-
tons should again become normal.
In order to insure success, the state
issued $75,000,000 of bonds bearing,
J. think, 6 per cent interest, and these
bonds were offered for subscription
at a fixed price. 100000 in New
York, 25,000,000 in London, 25,000,-
| 900 in Paris, 100000 in Berlin and
100000 in Brussels. When the day
| to award the bonds to bidders came
| (now keep in mind that this was not
a competitive bidding, but an offer
ms OpSII ~ GILL VIII WS1S Wiling "
purchase at the stated pAce) the
bonds offered in New York were ten
times oVer-SubSCribed.
Now it seems to me We have
reached situation not unlike that
which existed in Brazil in 1909.
ures given in the Worlds ALMANAC
for 1921, brought to the United
States for the year ending June so,
1920, the sum of $1,3S1, 707,502, man
ufactures of cotton $364,036,7S6, and
cotton knit goods brought ,$5l,575.-
the United States $11,951, 112. cot
ton seed meal $3,933, 500, and cot
ton seed oil $36,220,529. Therefore,
cotton brought into the United States
for the fiscal year ending June 80.
1921, the sum of $1,849,452,
Corn brought into the United
States $23,841,791, cornmeal S5,31S,-
$50 and cornstarch $10.23S,2S4, MAX
ing a total of $39,39S,225. The corn
crop of 1920 amounted to 3,2l6,l9z,-
900 bushels. Manifestly the pro-
Queer is dependent on the home
THE United States department of
agriculture has estimated that it
cost Mitchell county, Georgia, farm"
ers SO cents a pound to make their
cotton in 1910. As the United
States has been helping. pretty nearly
everybody in the world, why cannot
it help, just one time, the southern
cotton farmer? When he cannot sell
his cotton he cannot buy western
products nor eastern manufactured
goods. AS the war finance corpora
ton has been revived, L believe that
if this corporation would immediate
ly buy at 20 cents per pound 1,O0O.-
900 bales Of cotton, with a view to
holding it as the state of Sac Paulo
in Brazil did in the matter of cof-
fee. the instant effect would be the
revival of trade and a restoration OF
normal conditions. The achievement
is more possible than many of the
performances during the late war
and the benefits would be universal
''The valorization scheme in Brazi
was a. splendid success. The Valorl-
cation scheme / suggest as to cot
ton, believe, would not only cost
the war finance corporation moth
ing, but in the end would prove a
profitable business venture. AS to
the success of the valorizatlon
scheme consult Brazilian envoy. Au-
gusto C. de Alencar, now in WASH
ington. The war finance corporation
is strong enough to extend credits
as long as it might be necessary to
extend them, and is also strong
enough to find in Germany, or Rus
STA, or any other part of the world
persons, firms orr corporations
worthy of credit. A little cotton OF
fered to distressed Russia at this
time, on credit. might prove OF in
calcuIable benefit to the world.
Yours very truly,
IS. G. M'LENDON.