The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1921-09-09
RELIEF TO THE FARMER.

Stability of the rate of exchange, or
something approaching as near to it
as in pre-war days, seems one of the
great problems of the day. AS has
been pointed out, the present instabil-
| ity is the paralyzipg incubus which
lies upon all enterprise in interna-
tional trade. To make contracts based
upon the shifting relative equal OF
foreign coinage, or money OF exchange
Is almost equal to trying to do bust
ness while the earth is quaking and
Erccking beneath ones feet in the
throes Of an earthquake.
To illustrate for the benefit OF those
not familiar with the subject: If, say,
a German min owner desires to buy
American cotton he must OF course
agree to pay the equivalent OF GER
tain price expressed in American cur
rency. Though he sells his manufac-
lures In marks, he must pay for the
raw material in dollars. The marks
he would convert into American dol,
lars were quoted month ago at
.0l2S of dollar each, today 1t is
worth only .0116 of dollar-that is,
a hundred marks are now worth in ex-
change only $116. Before the war
they were worth s23.S0. When ii IS
necessary to pay In marks the equiya.
lent Of thousands OF American dollars
such fluctuations as have occurred in
the past month lone In the exchange
value of the German coin are apt to
distress the foreign manufacturer or
dealer. II is the same with the Eng
fish sovereign. the French franc, the
italian lire, or any other foreign
money OF exchange. though not in so
great degree.
The act for the relief OF agricultural
conditions In this country which was
passed by Congress Just before the re-
cess is designed to meet and counter
act. In measure, the unfayorable.
abnormal situation created by the I'M
certainties OF the exchange money
market, To relieve the enormous strain
on International trade.
The foreign manufacturer or mer.
chant can no longer make contracts
ahead for large amounts of staples. A
change In the rate of exchange be.
tween the time when the cotton. grain.
or other staple was contracted for and
the date of It's arrival at Its destina.
ton might cause him serious losses.
Therefore, he ni,rst buy as he needs
| the goods and only as he can imme-
Idiatefy dispose or
\ To meet this situation the American
staples must he STORED near to his
h nd. ready for Immediate delivery.
lA pssica must establish large ware
houses and biz elevators and stock
lhem with the coihmodities she has
| Cor sale. Export associations. heavily
Icspitalixed, must be established In this
country to buy thes1istaples from the
) American PRODUCERS and transship
taem TO England or Europe. But there
limit to the amount that may be
bought az a time, limit fixed by the
uncertainties of the foreign demand
md the process of marketing these
staples must. necessarily. be slow and
long drawn out. There Is need. there
fore. OF more elevator and warehouse
room in this country and the cotton
farmer Of the South must become
accustomed TO warehousing his CO.
ton
II The administration OF this acs Is en-
! trusted to the revived War F1nancs
! Corporation which i now perEeetins
: lplaas for the purpose Of the market
5 siag q American staple agriculture
! wcdnegS in>sn orderly manner.