Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-01
COTTON STRENGTH
IS NOT TEMPORARY,
CONGRESSMAN SAYS
Representative Summers De-
cIares War Finance Cor
pofation Has Funds and
Intention to Help Growers

cotton Is not a temporary but per
manent position in which cotton viii
grow stronger, and that the wal
finance corporation has the power
the funds and the definite intention
to assist the growers to market this
years crop gradually and permit full
advantage to be taken of improving
trade conditions, were statements
made in Atlanta Tuesday by Con
gresham Hatton w. Summers. mem
Der of the national house from che
Dallas, Tex, district.
Congressman Summers is member
of the congressional joint commits
sion created to make a study of agri-
cultural conditions, starting several
months ago. The commission Is
composed of five members of the
house and five members of the SEN
ate. Congressman Summers is chair
man of the subcommittee on cotton
his associates being Senator Har-
rison, of Mississippi, and Senator
Robinson, of Arkansas. The commits
sion is conducting an exhaustive in
vestigation into agricultural condl-
tions throughout the entire country,
and the subcommittee on cotton is
making special study of cotton.
The act recently passed authorizing
the raising of one billion dollars by
the war finance corporation to be used
as a revolving fund to aid in the
gradual marketing of agricultural
products and live stock was largely
brought about by the work of the
commission on agricultural inquiry,
aided by the farm organizations.
Congressman Summers represents
one of the most important districts
In the south. He is member of the
judiciary committee of the house, is
an experienced and influential leader,
and has made particular study OF
the economic problems of agriculture.
His views are of especial interest at
this time throughout the cotton belt.
Gradual Marketing Stressed
Necessity for gradual marketing
of cotton was particularly stressed
by Congressman Summers in his gen.
eral outline of the cotton situation
as related to the lund placed at the
disposal of the war finance corpo-
whether we derive the full bene-
fits of this legislation enacted Tor
the relief of our great staple crop,
and of the general attitude Of the
~AN'
will depend in large measure upon
whether the crop is gradually mar
keted. The local bank or merchant
who closes down on cotton produce
the community faster than it should
go, will defeat to that extent the
success of the program"
Congressman Summers Is in At
1anta to confer with officials of the
Federal Reserve bank of the Sixth
VII wi nd
resentatives of the business inter-
ests. He came to Atlanta several
months ago when the congressional
inquiry into agricultural conditions
was inaugurated, and interviewed
bankers, business men and farmers
here and in many parts of Georgia
as well as adjoining states.
1.-THE retreat of cotton has been
stopped said Congressman Sum-
ners. 1.-THE market in the past few
days has made a stand with strong
support. Its position will not grow
weaker, in my judgment, but will be-
come increasingly stronger as the
full benefits Of the war finance cor
poration's program begin to be felt
throughout the belt, and as world
trade conditions gradually improve.
Several factors have combined to
check the retreat of cotton and
bring it back to a strong position.
The first group Of factors which 1
W f.,
IN order to become fully operative,
the faculty of definitely assured
financial assistance, such as will be
given through the war finance cor
poration. Now that this factor has
been supplied by the legislation en-
acted by congress, the full force OF
the other factors began to be felt
Immediately.
Factors Favoring Cotton
First, the factor of carry-over
and supply. The worlds carry-over
from previous crops and this years
crop will be more than consumed by
the worlds accumulated. REQUIRE
ments. The highest authoritative
estimate Of the carry-over plus the
n highest recent estimate of this
the end of this harvest with the
shortest supply of cotton it has had
An a very long time.
Second, the factor of purchasing
power. While the worlds .purchas-
ing power, as compared with need,
lated need is far above normal. So
that the one may be said to offset
the other. Europe's food produc-
ton is steadily increasing, with the
cessation of war. The more food
produced in those countries, the less
and the less food they import the
more money they will have for other
Imports, notably cotton.
Third, the factor of recuperation.
BIT is true that recuperation and re-
covery from the ravages of the war
i'm Europe are going on slowly. but
zthey are going on. The buying
bower of European countries is grad
ually coming back. 1t may return
more quickly than we have cal
& culated.
THESE factors, as I have stated,
check
treat of cotton until reinforced by
the additional factor of financial as
sistance or credit To meet this
situation, two things have been
$cDe, to-wit:
* liberalization Of the policy of
the federal reserve board in Wash
ngton. coupled with magnificent
support, given the farmers by the
Federal Reserve Bank of Atlanta
knd some other regional banks serv-
ng the cotton belt.
"a broadening of the powers and
resources of the war finance cor
peration. coz lied with the manifest
purpose of the managing director,
Eugene Meyer, r., to exercise those
powers and utilize those resources
For the purposes. intended.
Cotton's National Support
cotton for the first time has a
tational support. We have from time
mmemoriaI heard cotton spoken OF
IS a national asset, but that view
point was largely theoretical. In
he last ten months we have had a
demonstration of the power and i'm
bortance Of cotton as national as
let. The fall of the cotton market
Elosed factories in the north, put
heir operatives on the streets, clos
d the mule market of the middle
vest, closed the horse market Of the
northwest, and seriously affected
God markets and other markets in
Farious sections of the country.
Nov every man, regardless of the
lection of the country from which he