Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-06
9TH NATIONAL BANK
To FINANCE SEVENTH
Of STATES COTTON
Bank viii Advance IS Per
Cent of Value for Four
Months at Seven Per
Cent
By RALPH SMITH

The Fourth National bank, of At
lanta, yesterday announced the de-
tails of a plan for financing one-sev-
enth of the Georgia cotton crop for
1921, under terms and conditions that
will help to stabilize the price and
save the farmers from the financial
loss usually occasioned in the har-
vest season by reason of their ina
bllity to market their product in an
orderly way.
In a nut shell, the Fourth National
purposes to make loans for period
Of four months, at per cent inter-
est, on cotton to the extent Of seven
| ty-five per cent of the market value of
the staple at the time the loan is ne
gotiated. On a basis of 20-cent cot
ton, it is estimated that the banks
resources will justly advances on at
least 100000 bales, which is one-sev-
enth of the states production, ac-
cording to the latest government es-
| Inmates.
The significance of the prOgressi We
step taken by the Fourth National is
more fully appreciated when it g
realized that if other large financial
| institutions adopt similar policy, 1t
will be easily possible Tor the city
banks of the state to finance Geor-
gia's entire cotton crop without call
ing for aid from outside or from the
war finance corporation.
The Plan Outlined
The plan of the Fourth National,
which is outlined in a pamphlet is
sued yesterday and amplified by a let
ter written by Charles I. Ryan, vice
president of the bank. is based on the
following salient points:
1. The bank offers to lend rs per
cent of the market value of cotton,
when properly warehoused and IN
sured.
| 2. The rate Of interest will be Z
lper cent.
grades below low middling, which is
| the lowest tenderable grade on the
New York cotton exchange.
A. The customer must agree TO
maintain a margin Of 25 per cent at
all times.
accepted as security must be issued
by warehouse whose financial stand
ing, management and Methods are
satisfactory to the Fourth National
and to the inspector of the Feceral
Reserve Bank of Atlanta. In this
connection, it is pertinent to observe
that preference will be given to
warehouses organized and bonded un-
der the federal warehouse act.
6. Warehouse receipts must be In
negotiable form, reciting that the
cotton will be delivered only upon
surrender of the receipt when prop
erIy Endorsed. 1t is provided, how
the commodity is deliverabl to the
holder of the receipt no Endorsement
will be required.
7. The receipts must plainly iden-
tify each bale of cotton, and must
also state specifically the amount or
advances made against the cotton, or
recite that no advances have been
g. All cotton must be fully cover
ed by insurance policies in accept
able companies. either payable to the
Fourth National or by a any ,,s oank TO
9. A certificate of grade issued by
an agent of the Fourth National, pre-
ferably the Cotton Certlfication and
Inspection company, must be furnish
ed with each loan.
10. The inspection service shall in
clude also the pulling and shipping to
Atlanta of samples of cotton inspect
cd.
H. No loan shall be made for
longer term than four months, and
the note used must be the regular
form of the Fourth National bank,
payable in Atlanta.
Statewide Facilities
Although the notes are payable in
Atlanta, it will be unnecessary for
borrowers to come to Atlanta to ne
gotiate directly with with the Fourth
National for desired loans. The plan
provides that the correspondent
banks of the Fourth National
throughout the state shall act as It's
agent in making the loans.
Indeed, the Fourth National was
moved in the adopting of the plan
by a desire to accommodate not only
it's own patrons but the clients also
of it's correspondent banks in the
state, of which there are several
hundred.
The fact that the Fourth National
has correspondent banks in every
section of the state assures that its
liberal policy in extending credit
will be available to cotton producers
in every county in Georgia.
MIR. Ryan's Letter
The letter of Vice President Ryan,
which has been forwarded to the
It Jul III . wi ~SFNAAO-'N O'
lows: =.
1.-THE Fourth National Bank of
Atlanta has always endeavored to
administer it's affairs on the funda-
mental principle that any business
can only thrive and permanently
prosper in proportion to the service
it renders the public With this in
view, it's officers have tried to con-
duct it's business on as liberal
basis as possible, ever mindful of
the necessity of preserving the
soundness and liquidity Of it's as
sets.
"Since our organization, this in
stitution has never directly or in
directly fostered, or encouraged,
speculation, which practice, if gen
eral, would be especially disastrous
to our section at this time, when
only by a liquidation of dents can
we hope to return to normally. In
the past, even when there was an
active demand for export cotton and
a substantial buying by domestic
mills, a surplus of cotton has always
come to the market at the ginning
season, which condition affected the
price unfavorably.
''It - the consensus of opinion OF
those who have studied the sftua-
ton, and it has ben given careful
consideration by the Federal Re-
serve bank and by governmental
agencies, that the dumping of the
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