Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-06-13
BANKERS ANNOUNCE
S5,OO0,0OO LOAN
FOR MARKET BODY
Banks Composing Atlanta
Clearing House Associa7
ton Make Definite Agree
ment

ment
The Atlanta banks composing the
Atlanta Clearing House association
have definitely agreed to furnish
$5,000,000 to finance the operations
of the Georgia Cotton Growers
Cooperative association.
This means that loans will be
made to cotton growers on proper
warehouse receipts and collateral to
the extent of $5,0OO,0O0, so that
the cotton produced by the mem,
bers of the cooperative association
may be marketed in orderly fash.
ion, without dumping it on the
market with disastrous results in
the way of price collapses.
Announcement of the decision of
| the Atlanta banks was made Sat.
urday by J. E. IConwell, president
of the Georgia Cotton Growers
| Cooperative association, after a
conference with a committee from
the Atlanta Clearing House asso.
citation.
An additional $3,OOO,Ooo to fl.
nance the associations cotton is ex-
pected from the War Finance cor
poration. Aaron Sapiro, attorney for
the association, will within the next
few days, make formal application
to the War Finance corporation
for such a sum to be used in MAX
ing advances on properly ware
housed cotton turned over to the
association under contract by it's
members.
That the War Finance corpora.
ton will act favorably on the ap.
plication is anticipated by the of.
t1cers of the association and the
bankers who have by their indorse-
ment and cooperation promoted
the success of the project. Eugene
Meyer, Jr., managing director of
the War Finance corporation, spent
|
attending the annual convention of
the Georgia Bankers association.
While here he held several confer
ences with Mr.. Conwell and other
officials of the cooperative associa-
ton, the upshot of the CONVERSE
tons being the assurance from Mr..
Meyer that the War Finance cor
poration would lend it's fullest CO.
operation to the movement.
$8,O00,00O Reserve
With fund of $4,000 900 on which
to draw, the Georgia Cotton Growers
| Cooperative association plans to
demonstrate to the farmers Of Geor-
gia and adjacent states that cotton
marketed in orderly fashion, as the
needs of the world demand, is decid-
eddy more profitable to the producer
than cotton dumped on the market
helter-skelter within a period of
three or four months. Advances will
be made to members of the associa-
ton to enable them to meet obliga-
lions where needed, these loans to
! be secured by warehouse receipts.
The 275,000 bales contracted for
| delivery tC the association will be
pooled, graded and held in storage
until actual sale is made through
| the association channels. Then the
proceeds will be turned over to the
producer. less q reasonable charge
for handling.
Bankers and officials of the COOP
eratiVe association pointed, out Sat-
urday that the action of the banks
comprising TIE Atlanta Clearing
House association constitutes one OF
the most definite, concrete iRdorse-l
ments of the cooperative cottou
marketing system that could be
wished. It's effect on the situation in
Georgia is expected to greatly bene-
fit the association and encourage cot
ton growers throughout the state to
align themselves with the organize
ton.
The Atlanta banks have also
agreed to advance funds for the cur
rent expenses of the cooperative an
ISOLATION in getting all departments
ready to receive and market cotton
within the next few months. 4
The Clearing House association
committee which handled the nego-t
tiations with the Georgia Cotton
Growers association included Eus
gene r. Black, president of the At
lanta Trust company; James s.
Floyd, vice president Of the Atlanta
National bank; w. w. Banks, vice /!
president of the Citizens and South
ern bank, and Hatton B. Rogers, +
vice president of the Fourth Nation
al bank and president of the Atlanta
Clearing House association.
To Use Cooperation
The Clearinghouse committee has
pledged to the cooperative associa-
ton it's best efforts and cooperation
in conducting the business Of the or Z
ganizaticn. 1t will, first of all, name
a trustee for the funds TO De a6%
Vanced by the Atlanta banks, but it;
will also advise frequently with the
executive committee Of the co-opera1
tive association as to ways and
means of carrying on its operations
most efficiently.
Officials of the cooperative associa~
ton are highly gratified at the atti-
tude and action of the Atlanta banks,
believing that thousands of growers
throughout Georgia "a'!Sr now cast
their doubts aside and af1Iiare with
the association.
"This favorable attitude and real
cooperation after investigation by
the banks of our own state means
much to our association said Mr..
Conwell. 1T should convince all
who previously have said that co.. !
operative marketing is right, but
doubted the ability of the association
to finance the cotton Of it's members.
Our association is now organ--
lied, backed by the farmers, the
banks and the government. We are
ready to do business; our success is
assured" IN