Evening star., 1926-10-13
SMITH WOULD HAVE
COTTON AREA CUT
South Carolina Senator Sees
President and Explains Re-
!. lief Measures.
BY j. RUSSELL YOUNG.

BY j. RUSSELL YOUNG.
Reduction in the amount of cot
ton grown in this country as the
basis for a financial plan to permit
sthe present tremendous cotton crop
to be stored for advantageous market
ing was strongly advocated by Sen
ator Ellison B. Smith of South Caro-
lima as the only practical means of
meeting situations such as exist in
the cotton States today as result OF
the slump in the marketing Of this
commodity.
1t is absolutely necessary for the
Southern planters to make a big cut
In their cotton acreage, said the Sen
ator, himself a cotton planter. He
urges a cut provided for in contracts
between the growers and the bankers,
such as would hold in court. He con-
tends also that the police powers of
the States should be used in enforc-
ing such a contract. He assured the
President that 1t is possible to cut
the acreage, inasmuch as the South
ern planters have done it before "in
spite of all the carping to the con-
trary."
Finds President Sympathetic.
Senator Smith went into some little
detail in piCturing to the President
the true state of affairs as a result
of the depression growing out of the
startling drop in the cotton market
ing price. He found the President
very sympathetic and anxious to be
of assistance and said the President
appeared to be impressed with his
suggestions for remedying the cotton
situation and asked him to confer
x,{f hn hxy
Eugene Meyer managing director Of
the War Finance Corporation. The
President appointed this group sew
eral days ago to cooperate with the
Southern States to seek a solution.
The President was told by Senator
Smith that the financing of the cot
ton crop can be done through the
Federal Reserve system, through the
nember banks. and under the legis-
aation which created the system. The
banks, he explained could and should
lower the rediscount and direct dis
count rates. They could, If necessary,
issue currency against cotton in
storage, he added The latter privi-
lege is made possible by section 13
of the Federal Reserve act, Senator
Smith said.
"I know this is true, because I
wrote that section myself" he added.
S3O,OOO,0OO Insufficient.
In the opinion of Senator Smith
the $30,000,000 made available for
the intermediate credit banks in the
South to assist in the financing of
those affected by the slump, will
probably not be sufficient to ade-
uuatelv meet the situation. He does
not, however, think it is possible to
determine now just how much money
is needed.
He suggested plan that would
require the planters to sign papers
indicating a definite cut agreement.
He would then have the world noti-
fed that there will be no duplica-
ton of this years acreage. If this
Is done he holds the South will not
again find itself in this present pre-
dicament. Two factors alone enter
into the plan, according to his view
point, cutting the acreage and de-
Gliding upon the world needs and set
ting aside the means of financing
such O. crop annually, with it's carry
over. This would prevent slumps,
the Senator believes. and would as
sure a stable price
Senator Smith iisagrees with those
who claim that the United States
produces more cotton than the world
needs.
Senator Smith agreed that the
Governments crop estimates are not
always helpful because of the i'm
possibility or accurately determining
the size of a future crop. He did
rot care, however. to join with Sen
ator Robinson of Arkansas. who re-
Gently discussed the matter with
the President, in criticising the crop
reporting system of the Department
Of Agriculture. He stated that no
planter, no matter how experienced
he may be, can accurately estimate
his crop until the final figures were
all in for January each year.
Predicts Serious Sequel.
II the present situation in the South,
which he described as real peril, is
not adequately met. Senator Smith
predicted serious consequences. He
said the depression would be felt in
other parts of the Nation
eff you smash cotton he said, you
destroy the greatest purchasing power
in the United States, that of the
Southern planter"
He believes. however. that the pres
ent crisis will serve to correct the
present system of handling the cot
ton crop and the accompanying Specu-
lation in prices.
Senator Smith believes also that
America should make more of it's
monopoly of cotton.
America should be ashamed of it's
self" he said. "for having this great
advantage and not using it. That
tremendous leverage on world trade
should be national and not an indivi-
dual matter. England's rubber mono
ply would be insignificant in compari-
SON"
William F. Bennett. former Repre-
sentative from New York, now a
practicing attorney in Chicago. called
at the White House to confer with
the President today before starting
upon speaking tour under the
afSpices of the Republican congress
sional campaign committee.
Among others who called to see the
President today were former Senator
Rawson OF Iowa, who offered him a
hopeful viewpoint regarding the
political situation in his State. and
Chairman O'Connor of the Shipping
Board. who said afterward he dis
cussed only routine matters.
Strawns Are Guests.
Mrs Arthur Brooks, widow Of the
Presidents colored valet. who died re-
Gently, and for whom Mr.. Coolidge
had a high respect. called on the
President today and it was said after
Ae EP0NTe Stvin6tT ina Stirk Y