Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-21
WAR FINANCE BOARD
is HELPING FARMERS
BY THEODORE TILLER
The Atlanta Journal News Bureau,
623 RIGGS Ri 'Idinp

WASHINGTON, July 20.-An en-
couraging survey of what the war
finance corporation is doing to aid
in the marketing of the south's cot
ton crop was issued here Tuesday
night by Eugene Meyer, Jr., manag-
ing director of the corporation, and
one Of the three members Of spe-
cial committee named by President
Harding to consider cotton financ-
ing. Other members of the commit
tee are Secretary Mellon and Secre-
tary Hoover, and the Meyer state
ment is evidently a statement con-
CURED in by the trio.
Mr.. Meyers analysis was issued
simultaneously with the announce
ment that the finance corpora ion
had agreed to make an advance of
100000 to southern exporter to
finance the expectation of about H.
900 bales of cotton from Georgia,
North Carolina and South Carolina.
This advance, it is understood, is
made to Barrett & Co., exporters, of
Augusta, Ga. Mr.. Meyer said the
presidents committee had sent out
a questionable to representative
bankers in the south on the theory
that because of unusual conditions it
is desirable to afford financing to)
cotton growers in addition to that
provided through ordinary banking
channels in the cotton territory.
Southern bankers, it was said con-
cur in this conclusion as do num-
Der of spot dealers and cotton ex-
porters.
Advances Made
1.-THE war finance corporation"
said Managing Director Meyer, has
agreed to make, advances, as an
nounced, which will finance 100000
bales of long staple cotton in theI
has made advances on $4,000 bales,
and these advances, through renew
ais, are expected to finance the ex-
port of about 100000 bales. Other
advances already concluded cover 90
900 bales in one case and smaller
quantities in others; and businessl
under consideration involves the fl
nancing of $4,000 to $4,000 bales inl
one transaction, 100000 bales in an
other, and 100000 bales in still an
other.
''A1l these loans mature within the
cotton year and are designed
to aid in financing the orderly mar
keting of the crop without encour-
aging holding for speculative pur-
poses. In addition. the federal re-
serve board is giving active consid-
Grafton to cotton financing and en-
tered conference Wednesday to
nnSi6ar IFS nOlicV Under nreSPnt
conditions.
IF it becomes clear that adequate
financing will be forthcoming through |
the war finance corporation, through
federal reserve banks in the cotton
and, in case of need, by pro- |
viding a fund from banking districts
outside of the south, it should, in my |
opinion, result in such increased con- |
fdence as to stimulate more normal |
takings by retail and wholesale mer-
chants, as we'll as by mills. Inquiry |
which [ have personally made lndi- |
Gates that retailers and wholesalers
are operating on the basis of the |
lowest possible stocks. This has re-
suited, to a great extent, in forcing |
stocks of raw materials, which nor |
mally are carried by mills, wholesal- |
ers, jobbers and retailers, back upon |
the original producers and the coun-
try banks that do their financing. The |
cotton business throughout the world |
has been showing a satisfactory |
gradual, but sound, improvement dur
ing the past few weeks, although |
some sore spots still exist. Foreign |
and domestic takings are both in
gradually.
"The object of the committee ap-
pointed by the president is to ascer-
tain if any unusual financial facilities
are needed to aid in the orderly mar
keting of the crop, and, if so, to con-
slider the best ways of providing
them"
WASHINGTON, July 20. - An
agreement to make an advance of
100000 to a southern exporter |
o finance the expectation Of approx
mately twelve thousand bales of cot
on was announced today by the war
nance corporation.
The cotton, the corporation said, is
rom Georgia. North Carolina and
South Carolina. Under this loan, the
cotton is to be held il warehouses
for export within a period of six
months.