Paragould soliphone., 1922-02-24
BANKS ORDER COTTON CROP
 BE REDUCED
f f cdIeraiI cdIeraiI Reserve R Leads Leads At At tack on One Crop System to Boom Business; Banks Will Be Careful"
By H. c. HAMILTON international News Service Staff
 CorreSpOndcnt.

Correspondent.
 Atlanta, Feb 23.-Assurance that there will be plenty of money for financing farmers who abandon the one-crop system this year is contained ill a statement by Cover nor M. B. Wellborn, of the Sixth Federal Reserve Bank, in which he denies reports from New York that reserve banks and member institu- tions in the South are insisting up- on liquidation of spot cotton held by growers and merchants to pay present indebtedness before more credit is extended. Mr. Wellborn declared that so far as his institu- tion is concerned the policy of the Federal Reserve Bank is just the re- verse.
 'The Federal Reserve Bank of Atlanta" he said, twill assist grow CTS through the member banks and will do all in its power to assure a gradual and orderly marketing of cotton over reasonable period of time. It has never been the policy of the Federal Reserve Bank of At lanta to force liquidation of cotton or other commodities. That mat ter, we think should be left to mem Der banks and their customers for their judgment and discretion.
 Voicing the belief that the cotton acreage would not be large this year, at least not in excess of that of last year, MT Wellborn said:
 Banks Will Be Careful.
 Bands will, I think, be exceed inly careful in making loans to to plant cotton, as hereto fore most of the cotton has been produced by tenants.
 'I believe the acreage should be held down to such an extent as to permit intensive preparation and which, with a moderate amount of fertilizer will mean great Pr yield per acre"
 The cotton crop this year should not exceed 10,000,000 bales. in the opinion of Mir, Wellborn. who de- dared that crop of 1O,O0O,0OO bales, added to the carry-over that will be on hand August 1, will be ample to supply the demand until -he next crop is gathered and will eliminate to large degree low prices, due heretofore in a large part to the heavy carry-over.
 He stressed the importance of di- 'erSified crops to hasten the return 'f normal conditions and prosperity n the south and said:
 Abandoned One-Crop System.
 The supply of money for agricul-I ural use this year will be ample. md l am sure the banks will aid hose who have abandoned the one .rop system"
 lh urging upon farmers the plant ng of small cotton crops this year ie pointed out that fertilizer prices Ire likely to be high and that q mail amount Of fertilizer properly pplled to limited acreage wouId 'roduce better crop than the same | mount spread out thinly over a arge acreage.
 Mir Weliborn sounded note of ptlmism and voiced his belief that he farmers of the South would trough diversified crops and cur ailed cotton acreage. be able this all to pay on old debts and have ioney left to give them purchasing ower, thing necessary. he said 'r the return to national normalcv Ie predicted that if the farmers fol- 'w that system this year prosperity thesouth will return to near nor lal this year.
 The Southwest" he said. ~and he rest Of the country, for that