The Birmingham age-herald., 1924-09-21
BANKS AND STORED COTTON

l The statement has frequently been made in these counties that the ability of a farmer to obtain loans is largely matter of the farmers deserving such loans. That is to sayy a. bank is desir- ous of lending money where there is re- liable assurance that collections will fol- low without resort to legal methods or foreclosure. In other words, there IS no financial discrimination against the farmer because he is a farmer, but be- cause his methods are frequently not sufficiently businesslike to insure the safety of bank loan. Farmers who pur- sue successful business methods are good risks, and have no difficulty in obtain ing loans at their banks. Therefore, gov ernment legislation to extend credit to farmers is far less constructive than government assistance to the farmer in putting his affairs shipshape and on . sound financial basis because of the efficient methods employed.
 A proof that the banks will lend money to the farmer when the farmer is able to meet the bank on the same terms that other business men enjoy IS given in an. advertisement appearing in the Wetumpka Herald of las. week. The First National Bank of Wetumpka offers cotton loans at four per cent. To en- able our farmers to market their cot ton in proper manner, we will, until fur their notice, make loans on cotton se- cured by deposit of warehouse receipts at the low rate of four per cent. per annum." t The bank makes this offer, both in spirit of helpfulness to local agriculture and because it is persuaded that such leans would be good business. They will be good business in two ways. In the first place, they are made on good security that is easily made liquid. In the second place, they bring more money into the community" by enabling the farmer to hold his product for a higher price than he would receive, if he had to take the market offer at time of ginning.
 But back and beyond the entire situ- ation is the businesslike method of grad ing cotton and placing it in warehouses against receipts calling for so many pounds in each marketable grade. Properly graded cotton is more valuable than mixed cotton, or cotton which has been allowed to accumulate dirt or trash from improper handling, .or to become dscolored from being left too long in the field or in the open. Haphazard or care less handling of cotton makes the com modity a poor fisk; but cotton properly and cleanly handled, graded. and stored is the same as money in the bank. The banks themselves admit it. They go fur ther than that and are desirous of risk ing their cash on such reliable security.
 While it is true that the banks are in position to help agriculture on it's feet, it is equally true that agriculture cannot stand on it's feet unless it exercises it's own muscles of self-help and independent effort. The cotton industry, as well as other branches of farming, is organizing itself according to efficient standards. Not only are the banks willing to lend money on farm staples properly handled and stored, but the farmers themselves will enjoy the increased price that in- evitably results from such program. There is as much mutuality between the farmer and his bank as there is between the bow and the string. It is unfortu- nate that the farming industry has been so long finding this out, but it is grati- flying to perceive that the benefits are both prompt and noticeable.