Evening star., 1926-11-06
MEN AND MONEY
BY M. S. Rukeyser
(Copyright. 1926.)

Peanuts and tobacco will mitigate
the adverse effects. on the fortunes Oh
Georgia of the recent drastic decline
in cotton prices.
H. Lane Young, executive manager
of the Citizens and Southern BANK OF
Atlanta, takes the view that the serl-
BUSINESS Of the setback resulting from
the slump In cotton has been eXas-
gerated.
"About 40 per cent. Of the Georgia
cotton CROP" Mr., Young informed me,
has already been marketed. leaving
something like 60 per cent, or 90O,Oo0
bales, in the State to be gathered ana
stored, and think it will be the dis
position OF the farmers, who Will be
encouraged by country bankers as well
as the city banks. to hold large ma
jority of this 100000 bales for an In
definite period. / do not think this
will cause any freezing Of bank loans
in Georgia for the reason that the
sale Of the first 100000 brought Geor-
gia better prices than prevail now, put
ting the farmers in comfortable cir
cumstances. This has been true be-
cause Georgia for 10 years has been
diversifying crops, and, consequently.
is now producing only 40 per cent OF
it's previous cotton production.
Big Crops of Peanuts.
Georgia is now raising large crops
Of peanuts which are selling at 500
a ton, against SIS a ton a year ago;
the tobacco crop this year brought
$40, 100000 into the State; we shipped
Is, 600 peaches; we had a watermelon
crop that sold for good prices; we
are now making the largest crops OF
apples, hogs and sweet potatoes ever
produced in the State. In addition
to these, chickens, eggs and dairytng
have become large industries in our
State. All of this was brought about
by diversification.
ut is our opinion that the slump
in the price of cotton will materially
and definitely facilitate the move
ment not only in Georgia but
throughout the South to rotate crops
and further diversity. The outlook
in our district is entirely satisfac-
tory, and we see no reason why re-
tail trade for the remainder Of the
year should not continue to be good
and the prospects for good business
for the first part of 1927 seem as
sured.'
Asked whether a special Federal
revolving credit such as has been pro-
posed will help to provide the funds
needed to withhold cotton from the
market, Mr.. Young replied:
1.-THE banks of Georgia are amply
able to carry the entire balance of the
cotton crop for it's customers for an
indefinite period of time without out
side assistance or new financial ma
chinery."
Opportunities for Capital.
Queried concerning the opportuni-
ties for Northern men and capital in
the Southeast, the Atlanta banker de-
clared:
"a great deal of outside capital is
coming into Georgia for development
of hydro-electric power plants, cotton
mills, clay product plants and other
things, but, of course, we would like
to have a great deal more as the raw
material and other facilities are here
in great abundance. 1t is my opinion
that no other part of the United
States furnishes the opportunity that
is now being held out by natural re-
sources and otherwise as Georgia and
other Southwestern States for men
who are willing to work and for cap
ital seeking investment.
Our building movement is going
along in a satisfactory way, but
IlOQSlIlS lciClllllcS lIl lAC Oi al uAoSA ANSA'
are hardly adequate for keeping pace
with progress"
A cheerful picture of a section
temporarily disturbed by an unfavor-
able turn of the wheels of chance at
the Cotton Exchange.
Trend i'm World Economy.
The world is turning. toward greater
uniformity in sharing prosperity and
depression, according to DR.. Wesley
Clair Mitchell, leading authority on
business cycles.
"A trend in the direction of world
economy, in which all nations will
prosper or suffer together, is discoV-
cradle today" says DR.. Mitchell.
:Probably the nearest approach to
severe worldwide crisis was made
in 1920, and that case was obviously
dominated by postwar readjustments.
1t is clear, however, that a financial
crisis breaking out in any country Of
commercial importance produces finan-
cial strains in other countries and that
even mild recessions spread widely.
"As American business is coming
to have one story, diversified by agri-
cultural episodes, so, before the war
shattered international bonds for a
time, world business seemed to be ap-
preaching the time when it too would
have one story, diversified by political
and social as we'll as agricultural epi-
sodes in different countries"