The county record. [volume] (Kingstree, S.C.) 1885-1975, 1921-04-07
PLAN TO AID COTTON FARMERS
Financing of Exports Discussed at
Conference of Bankers

was begun at a conference here to-
DAY between representative bankers
from twelve southern states and Sec
retaries Hoover and Mellon as we'll as
Governor Harding of the Federal Re-
serve Board and directors Of the War
Finance Corporation.
Although no formal action was tax
en- today propositions for government
aid in financing cotton exports were
suggested and tentatively indorsed.
The program, initiated at this time
specifically for giving relief to the
cotton growers, it is expected, will
eventually be broadened to apply to
the other farm products.
a committee was named by the con-
ference to pursue further studies of
plans to create local Or sectlon"' bank
ing syndicateS which would serve as
agencies to combine the financial
strength of interest in the cotton crop.
Around these, it was proposed. would
be erected machinery for the extern
sion of credit to stricken European
states where long term credit is nec-
eSsary and where there is no market
unless the exporter is willing to wait
conversion of the raw material into
finished merchandise.
The discussion was frank and Gov
ernor Harding took occ issioE 10 assert
that the cotton growers lacked cor
fdence and that any relief hat could
come must have its origin among
those interested and not in the gov
ernment.
After the afternoon session, Manag-
ing Director Meyer of the Finance
Corporation, under whose auspices the
conference was held, declared genuine
progress" had been made in the di-
rection of plan which. ultimately
would restore life to the cotton busl-
ness. He warned however. that the
situation could not be remedied over
night and that only through combined
action of those interested in conAec-
ton with such financial help as the
government would give il. tie shape
of loans would better conditions ,re-
vail in the cotton belt.
While the conference today die no.
90 into the details of the progl ani, it
is understood in general to be the
purpose to use the collective resources
of banks in sections where cotton is
tied up. The banks aiding in the fl.
nancing of the exports, it was pointed
out, could, with their own paper, oh
tain further loans from the War FL
nance Corporation so that their ac-
tivities would not be curtailed o.
lack of money.
Organizations of export corporations
under the Webb-Pomerane and Edge
acts also were urged upon the bankers,
Secretary Hoover especially indicated
that, in his belief, the cotton inter-
ests should, under those two acts and
with the assistance of the War finance
Corporation, be able to establish Sue
cessful export trade.
Secretary Mellon suggested ware
house depositing of cotton and some
other nom -perishable products on
which loans might be obtaired from
the government, as means of ena-
bling the producers to continue opera
tions. He said the copper producers
had resorted to that plan when they
were confronted with no market for
their mine output. Money borrowed on
the warehouse receipts was being US
ed, he explained, to keep the mines
running in the nope that eventually a
market would be available for the
stored stocks.
Several bankers urged reduction
in cotton acreage until the world con-
sumption catches up with production.
This brought from Governor Harding
the assertion that there was no actual
over-production, out decrease in the
huying power Of the European state
into which American commodities for
merly went. The job of the cotton eX-
porter and his financial backer, Mr.
Harding added, was to recreate the
buying power by supplying some credit
on sound economic lines.
The situation in Europe, as viewed
by the reserve board, he added, needed
stabilization and he added that one
way to aid this stabilization was by
assisting those countries IN manufac-
turing.
\ committee was appointed to study
the local situation, and includes:
Robert F. Maddox, Atlanta. chair
man; D. NJ. Armstrong, Memphis; Ma
than Adams, Dallas; Charles Clai-
borne, New Orleans, and Richard |.
Manning, Columbia, S. c.
Besides those named on the commit
tee. bankers attending the convention