Douglas daily dispatch., 1926-10-09
COTTON CROP NOW
NAT|ON'SPROBtEM

| WASHINGTON, Oct. 8 tAP) = The
cotton crcp, It's size and value thrust
! itself to the front today as one Of
the pressing problems of official
washington simultaneously with a
forecast by the department of agri-
culture that this years yield woula
be the largest in history-16,627,oOt
bales. e-i-
Government officials interested in
the problem went over plans by
which the southern rarmer, his COM
modify already enormously shrunken
I in value, might be placed in a. posi-,
tion to meet the situation facing him,
Southern members of congress busted
! themselves in seeking ways ano
means to help.
President Coolidge was brought in
to the conferences by Senator Rob-
inson of Arkansas, the democratic
senate leader, who visited the Whit,
House to seek government interven-
ton in the way of furnishing funds
with which to finance orderly mar
keting while Secretary Jard.ne, in e
letter to the president of the Ala
bama Cotton association, outlined q
plan which he thought should be
tried out.
The agriculture departments fore
casts were sharply criticized by both
ERobinson and Representative Black.
democrat, Texas, who has been active
recently in efforts to change the
method of crop forecasting.
At the. White House, it was an
nounced that the chief executive had
been in conference with secretaries
Mellon and Jardine on the cotton
situation. Secretary Jardine inform
ed Coolidge that cotton was a COM
modify which lends itself easily to
credit, while Mellon expressed be-
lief that the federal reserve system
would be able to furnish the credn
necessary on whatever sound plan
was devised.
Secretary Jardine expressed con-
fidence that the country was amply
he described as a commodity that
was not injured by storage.
1.-The, bankers and other business
agenies of the south are Loyalty co.
operating to restore confidence" he
said, "and L assure you that the de-
partment of agriculture is actlveiy
supporting that movement.
"Other agencies of the federal gov
ernment are also available. Credit
facilities through . ordinary banking
channels appear to be adequate, but
we have in addition, if needed, tne
services and resources Of the inter-
mediate credit banks. 1t was for just
such emergencies as the present one
that these banks were established.
Those in charge OF them have assured
me that they are ready to do every
thing in their power At present
they are loaning money freely to
the cotton co-operatives, ana they
are prepared to also extend credit to
other cotton farmers.
eff this additional source OF credit
is needed, it may be drawn upon by
creating local financial credit assoc'a-
tions. These can be established with
q minimum of $10,O0O,O0O local capt.
tai, raised among business men, farm.
ers or other citizens. Ten times the
amount of the capital can be Dor,
three years at a moderate rate OF
interest,"
After declaring final determination
OF the acreage to be planted rested
with the farmers themselves, the =oc-
retary said it was ''manifestly 10
their interest to adjust that acreage
to meet the needs of the consumers
ito avoid wide fluctuations in cotto-,
prices. The best way to avoid sucn
fluctuations is to be in position TO
carry continuously an ample. reserve
sufficiently large to absorb any Sur
plus from one or more good sesaon- :
and to supplement the shortage vL
several bad seasons. We are now in
position to begin the creation of such
a reserve. We should accept the op
portunity and make the most of it.
Senator Robinson predicted move
would be made at the next session OF
congress to modify or abolish the
cotton crop reporting methods. Rep
resentative Black expressed the be-
lief that the crop had been greatly
cver-es timated.