The Washington herald., 1921-09-02
EXPORT PLANS AID
COTTON ADVANCE,
MEYER BELIEVES
Renewed Confidence Adds
Millions to Wealth, in
His Opinion.
MAKES STATEMENT
Arrangements to Finance
One-Eighth of Surplus Are
Completed, He Reveals.
MAKES STATEMENT

Recent advances in the price Of
cotton. adding hundreds OF millions
to the wealth of the South and re-
lieving a situation bordering on
bankruptcy. are probably due 20
brighter prospects for financing Of
cotton exports and to renewed con
hdence among the banks. in the
opinion of Chairman Eugene Meyer,
jr.. Of the war Finance Corpora
lion.
In the last sixty days the War
Finance Corporation has directly
arranged, through the extension of
credits to Southern cotton growing
associations. banks and other busi-
ness institutions, for financing the
export Of approximately 100000
bales of cotton. This is roughly
one-eighth of the cotton surplus
now on hand, compared with a nor
NAL surplus of from 100000 to
1000, ,QA bales
Negotiations already concluded
and now under way will relieve
the situation to this extent, Chair
man Meyer indicated.
Makes Statement.
"Of course no one can say why
cotton has advanced in price," he
said, "but il were to hazard an
opinion, / should say IL was due
to the cumulative effect of new
credits for export. and to renewed
confidence on the part of the banks
and growers. We have been pay
ing particular attention to cotton.
naturally. because il is our largest
and most important CROP and in
normal times makes up from 20 to
IS per cent of our total exports.
'T think We have given the
growers confidence and have given
the banks down South confidence.
OF course the South has lacked
banking capacity for meeting the
crisis. Their banking resources are
not equipped to carry over 100000
bales of cotton from one year to
the next, and the effort to do so
has been a strain. We have shown
they can be taken care of. and the
result has been more confidence.
The growers have not been fright
sned, and the banks have come in
more freely with extensions OF /
credit. Some of the New York
banks particularly have extended
credit along lines paralleling those
on which We have operated. --
The banks have got to carry the
growers longer. There is no use
trying to sell cotton for delivery
in six months when people don't
want to, buy it for a year.
ha
price of cotton has been due to
these extensions of credit?" Chair
nan Meyer was asked
That is the natural assumption"
be replied. though II is none of our
business to say what the price of
cotton shall be. Our function is
merely to provide money for the
orderly marketing of the full crop,
md to make sure that the funds so
advanced are not used for specula-
tive holdings
When the War Finance Corpora
lion announced its first loan to
Southern cotton growers, on July
!. to permit the expectation of ap-
proximately 100000 bales, cotton
was selling for 12Is cents. As sub
Tequent loans were announced, the
price gradually advanced to its
present figure. around 16 cents.
Local Securities.
A comparatively fair volume of
trade in which transactions were
we'll variegated proved the out
standing feature on the Washington
Stock Exchange yesterday. Prices
generally ruled firm except in the
Ease of Washington Railway per
cent bonds. which recorded a frac-
tional decline over the opening quo
tation. Sales of this security to-
tailed $1,000 face value, at 61% and
Sih.
Washington Gas IS sold to the ex-
tent of $4,000 at TN. and the same
amount of Potomac Electric 1st 5s
changed ownership at S9h.
In the stock list. Washington Gas
Light assumed the leadership, IS
Bhares finding their way into the
sales column at 45h- Mergenthaler
linotype was traded in to the ex-
tent of "a shares at 1870; 6 shares of
Capital Traction sold at S5k and
s5z, and 3 shares of Railway COM
mon at IS
Call funds on the local board
tailed to record an easier condition,
money being offered at per cent,
FOR which per cent represented the
highest bid.
Personals.
Eugene z. Allies. formerly mana
ger OF the local branch office of
he National City Company and
now assistant vice president of the
home office, Is visiting friends and
relatives in Washington.
H K d. Peachy, manager of
Brooks. Stokes and Company. local
brokers. Is spending a three weeks
Eacation in Shenandoah Valley, vir-
yinia. Mr.. Peachy will return ON
Labor Day.
stock Exchange to Close.
The New York Stock Exchange
win stand adjourned on Saturday,
.emaining SO until the following
Tuesday.
+, WASHINGTON PRODITCE