Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-10-14
Co-oberat;ve Marketing As
A Factor IN Farm, Finance
r is interesting to observe, apropos o


TT is interesting to observe, apropos of
Mr.. Sapiro's notable address on CO.
operative marketing of farm products
that the annual value of this country's
crops for the last six years has averaged
eighteen billion dollars.
So vast sum Of vital wealth, equalling
for a single twelvemonth the estimated
value of all the railroads in the United
States, assuredly should command the keen
est attention and the most competent service
that systems Of finance can provide. The
producers of these necessities are them
selves entitled to liberal consideration, for
if ever they should cease their labors all
the processes Of our economic body and
indeed of our daily human life would fail
to function. Aside from the rights of the
farmer, the basic interests Of business, the
prosperity of industry and commerce, the
welfare of the nations rank and file, de-
mand that the needs of agriculture in the
impo mt matter of marketing be met, and
be- met adequately.
Until late years, however, these needs
have received sorely inadequate accommoda-
ton. It has been the fault of no financial
group, but rather the deficiency of a. system
which constrains the farmer to dispose OF
years output Of the soil within few
months. Truly has it been observed that
while he himself buys retail he must sell
wholesale-and must sell, for the most part,
in an over-crowded market. Moreover,
while his products are consumed gradually,
as the years demands appear, he is accus-
toned to market them within one brief sea-
SON. Little wonder that his earnings are
Outlines disproporationately small, or that
r the prices which the consumer pays under
this inefficient regime are disproportlonateIy
high.
The consequences of failure to provide
adequately for the marketing of farm COM
modties are succinctly described by Bruce
WIN GXnduS-
tive study of the problem, in the South as
we'll as in the West. AS an Illustration
OF the farmers plight in times OF stress
and Of what can be done and has been
done by way of sound assistance ne tens
something of the services OF the war
Finance Corporation to cotton growers IN
1921. Cotton" he writes, sis largely an
export crop, much Of it going to the textlle
mills Of England and the continent or Eu-
rope. In former years European purchasers
have provided the money to finance its
handling. In the spring and summer OIL
each year American banks were accus-
toned to draw 90-day bills on Europe IN
anticipation of the harvest. But IN 1871
Europe had come pretty close to the emu
of her string. Her financial resources were
small and because of fluctuations in ex-
change she did not dare to buy for advance
delivery. The cotton planter found prices
greatly reduced, his market both at nome
and abroad sharply curtailed, and ne was
suddenly called
pressure which they themselves could not
control) to pay for a years operation IN
few weeks. 1t was in this Juncture that the
War Finance Corporation, hastily revived by
congress to do what it could toward anne
liorating conditions, came to the rescue IL
announced it's willingness to lend on safes
of cotton either for immediate or deferred
shipment with immediate or deferred pay
ment Some cotton was shipped to foreign
{ warehouses and held there for SALE While
some was held in America subject TO future
sale for export. The potential demand was
~ co,,<se as real as ever. People all over
the world were still using up cotton faDrlcs
which must be renewed. The task was one
Of oiIing the wheels of machine Whlcn'
though it had slowed down almost 10 tne
point Of stopping, was still gooo anu capa-
HE of running" Thus a total Of approx
n,atelv a million bales was financed. More
far-reaching than the aid itself was It's IN
fluence in restoring confidence ana us DEM
onstration that forced sales OF farm prouuctS
are not unavoidable ,.
cornoration has approved advances aggregat-
ing almost half a billion. dollars for export
aids for agricultural loans to banks, LOT live
stock companies and for cooperative mar
keting associations, it is evident that tellns
strides have been taken in the important
task of financing the farmer. Moreover the
leading banks of the South, and particularly
those of Atlanta, have done substantial WORK
of their own. Ever mindful OF the interests
of agriculture and definitely helpful thereto
in So far as resources and sound methods Of
banking would permit, they have been
prompt to recognize their widened opportu-
mites for service through the growers sell
ing organizations when these are rightly de-
signed and competently administered. the
Georgia Cotton Growers Cooperative Mar
keting Association, measuring up t the most
approved standards, has been accorded liberal
banking support, and is now making eco
nomic history of the highest moment.
1t was at meeting of the executive heads
and directors of this association, held yester-
day in Atlanta, that Mr.. Aaron Sapiro, famed
far and wide as ar authority on cooperative
marketing, declared that three groups are es-
sential to the successful selling OF farm prod
ucts, namely: farmers, business men and
bankers. california" said he, worked out
her cooperative marketing system (Which
adds to her enrichment by millions year,
through the perseverance Of her farmers. the
business principles of her merchants, and the
sound guidance Of her bankers" What this