The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1921-05-11

lars worth of the bonds in thirty
days. Before we knew il we had a
demand for more than we could offer.
The banks loosened up We suddenly
found a real medium for growers
paper offered for the first time in the
United States with a specific nonper-
ishable commodity behind it. We
found that the people asking for il
were not the men on the street who
doesn't know about bonds but the
bank, the big merchants. They came
i'll with tales about how every bond
they bought with long maturity had
been going down. They wanted to get
some kind of bond that had a short
time maturity, in which they could
put their money for six months and
get all the money back in six
months-some bond which had Sc
curity behind it of some specific COM
modify that they knew about, like
wheat or cotton.
| went to New York and took it I'D
with a couple of bankers there. At
their request (they represent inciden-
tally three of the largest banks in
New York City, ! am supposed to re-
port with some kind of proposition as
to how much the Northwestern wheat
States-that is the associations of
Montana, Idaho, Washington and
Oregon-are going to put out in these
bonds this year. They want to know
If they cannot underwrite them in
New York. | am likewise supposed to
meet with the representatives of the
second largest paper house in the
United States to talk over the pro-
position. They want the proposition
underwritten and are talking of buy
ing as much as 100000 worth of
bonds.
The fly in the ointment is with our
local banks. We don't want to put all
our paper out that way We want to
keep our banking system as it is, We
want to put into bonds only the a
mount the local banks cannot handle
on the draft and acceptance system.
The Extremes Meet Happily.
| want you to know that it is that
commodity bond phase that attracted
Mr.. Baruch, who >had been thinking
along this lire from the standpoi
of the banker. Here you find two
systems (the cooperative system
from the standpoint of the grower,
and Mr.. Baruch thinking from the
standpoint of the banker) absolutely
meeting. 1t was exactly the plan he
worked out for the South Carolina
cotton men without knowing that it
had been done by the growers in the
Washington wheat group
Then the Federal Farm Loan Bank
had been thinking out something a
H. T. I -.
exactly the form of thing he had been
thinking about for farmers.
But it actually works 1t has been
done on small scale; the principle
is demonstrated 1t has not been talk
ed over with a single bank or bond
man in the United States who has not
grown enthusiastic. And | have talk
ed of it not to the so-called "pikers"
among bankers, but to some of the
leading bankers of the United States
and one of the largest paper houses
i'll the country. They are really inter-
ested. They want propositions on it.
The cooperative marketing associa-
tons have succeeded not only in
working out something on the mer-
chandising plan, but, inasmuch as
financing is inseparable from mer-
they succeeded in working
out things on tha financial plan We
have been in this business long
enough to learn, we have been in this
business long enough to succeed. We
have learned the methods in financing
as we'll as the methods in actual mar
keting.
1t Will Work With Tobacco.
Every one of the things have been
saying to you applies to tobacco.
realize that while | have been talking
in reference to wheat, eggs, raisins
and things like that you have been
applying those things to tobacco. l
have been doing the same thing.
have likewise been applying that to
tobacco. ! have not applied that to
tobacco in complete ignorance of your
tobacco problem. Before | went over
to the Virginia and North Carolina
| presented a series of ques-
tons to the Virginia and North Caro-
Continued On Page 6