$11 Million Available for Cotton Farmers to Finance the Cotton Crop
Raleigh, Oct. 28—Eleven millions of dollars available in North Carolina with which cotton farmers may finance their cotton and hold it off the market for a period of two years!
This, in substance, is the gist of the announcement made by Governor A. W. McLean that more than $1 million has already been subscribed toward the capital stock of the Cotton Finance Corporation being organized at his instigation last Saturday in Greensboro to assist the farmers of the state to hold back their cotton until prices improve.
“The response of the bankers and business men of the state has been most encouraging and most remarkable,” said the governor in commenting situation. “Nearly $2 million has already been offered, instead of the $1 million desired, and I am convinced that it would have been just as easy to get a capitalization of $5 million as it was to get $1 million. This is also an outstanding example of the interest which the bankers and business men felt in aiding the farmers and is an evidence of the concern they have for higher prices for cotton. With this corporation assured, and with adequate warehouse space available, there is no reason why the outlook should not improve at once.”
Attention was called to the fact that through the Cotton Finance Corporation cotton warehouse receipts and loans made on cotton in storage could be discounted through the Federal Intermediate Bank up to $10 million, making $11 million in all that will be available to the cotton farmers in the state. The interest rate will not be over 6 per cent, and perhaps even lower.
The storage space in bonded warehouses available at present is enough to take care of from 400,000 to 500,000 bales, and the cost per bale per month for the first year is but 35 cents, including handling charges, storage and insurance for the second year, or any fraction of it, the charge will be but 20 cents per month.
The personnel of the finance committee which he was authorized to appoint to provide ways and means for meeting the present cotton situation was also announced by Governor McLean. The members of the committee are as follows: J. W. Simpson, Greensboro; Thomas H. Shipman, Brevard; N. E. Calhoun, Winston-Salem; F. F. Fagan, Rocky Mount; E. B. Crowe, Raleigh; W. G. Gaither, Elizabeth City; N. M. Victor, Charlotte; J. Elwood Cox, High Point; John F. Wiley, Durham; Ralph W. Page, Aberdeen; and James H. Pou, Raleigh. M. L. Corey Richmond, Va., one of the receivers of the Tobacco Co-operative Association, as is Mr. Corey is very familiar with the system of financing employed by the Intermediate Credit Bank.
This committee is to co-operate with the warehouse committee appointed at the Greenhouse meeting for the purpose of bringing to the attention of the farmers, bankers and others interested in cotton, the various methods whereby cotton may be held from the market until the prices improve. The finance committee will co-operate with the banks and the cotton finance corporation, now being organized, and other agencies in the state as to ways and means of relieving the situation. It will also enable those desiring to do so to carry their cotton at the lowest possible cost for as long a period as two years, if necessary.
This committee will in no wise be connected with the cotton finance commission in any other than an advisory capacity, however, as the finance corporation will elect its own officers and directors at the first meeting of the stockholders of the corporation, which is expected to take place in a few days.
A telegram has been received by Governor McLean from Eugene Meyer, of President Coolidge’s cotton committee, advising that cotton financing corporations of $1 million capitalization have been assured in the state of Louisiana, South Carolina, Georgia, Alabama, and other cotton states are working on plans to provide similar corporations.
From the front page of the Concord Daily Tribune, Thursday, Oct. 28, 1926
newspapers.digitalnc.org/lccn/sn92073201/1926-10-28/ed-1/seq-1/
