North Carolina Newspapers

a V-y J. W. NOELL, EDITOR A] VOL. XI Wher Let The Rec; rd Speak Finance Corporaticx The true story of how the fanner were sacrificed in the great defla tion period following May 10, 1920 aa told by official records. ^ THE POLITICAL OUTLOOK I> NORTH CAROLINA CALLS FOl CERTAIN PACTS OF RlflC EOT HISTORY. 0? ' A Question. What was the War Fin a nee Corporation, and for what par pose w*s it created T Answer, It was a corporatirat created by Act of Congress, for th< ^purpose ?first,' of assisting in tbi fcrcwution of the War, and later i< S^ftas continued for the purpose of as ^ kUng agriculture by lending mone) "formxportation of agricultural pro duett. (See War Finance Corporatior Act approved by U. S. Congress Apr C, 1918, and Acts Amendatory thereof.) Q. How was the War Finance Corporation created.? A. "The Secretary of the Treasury the Secretary of Agriculture, ami four additional persons, |(who shal be the directors first appointed ai hereinafter provided), are herebj created a body corporate and politic In deed and law, by the name, style and title of the 'WAR FINANCE CORPORATION' end shall have succession for a period of ten years.' (Sec. 1, War Finance Corpos^pw Act, Approved April 5 1918, 40 Stat 506.) Q. How was it to be managed? A. "The management of the CorJ poration shall be vested in a board of directors, consisting of the Secretary of the Treasury who shall be chairman of the board, and four othei persons, to be appointed by the President of the United States by and with the advice and consent of the Senate.'' (Sec. 3. War Finance Corporatidn Act.) Q. Who were the directors in charge of the affairs of the War Finance Corporation at the times hereinafter mlntioned? A. Sjcretary of Treasury, Secretary. of Agriculture. Eugene Meyer, Jr., F. M. W. Cuteheon, A. W. McLean, of Lumberton, North Carolina, and Geo. R. Cooksey. Q. Did it have all the powers of an ordinary corporation? A. Yes: it was eovemed hv its dir. ectors just as your local bank is governed. It waa continued in existence after the war for the express purpose of assisting agriculture, by lending money for exportation of cotton and other raw agricultural products. "The Corporation shall be empowered and authorized, in order to promote commerce with foreign, nations, through the extension of credits to make advances upon such terms, not inconsistent .with the provisions of this section, as it may prescribe, for periods not exceeding five year3 from the respective dates of such advances. (1) To any person, firm. Corporation, or association enSaged in the business in the United Htates of exporting therefrom domestic products to foreign countries, if such person, firm, corporation, or association is, in the opinion of the board of directors of the Corporation, m -i ui'tuno w puvain tunas upon reason ?aille terms through banking channels." (See Fourth Annual Report of the War Finance Corporation, Pages 30 and 31.) Act of Congress March 3, -.1919, 40 Statutes U. S. 1809, 1314. Q. When and how were advances (loans) to be made? A. "Where the exporter has made a definite contract for the exportation of products at a specified time, the Corporation may make the advance a reasonable time before the date of shipment, in order to enable the exporter immediately to purchase an^iold products for future expor'l^HUiier such contract. j^^^^^^Bvance to assist carrying ^ fficultural products in the k| until they are export^kde by the War Finance haoon as the products Bkrehoused or othercondition to afBjte for the ad^knnual Report ^ fjprporation, ^fce War MUTILATED be II NtD PUBLISHER "" _ ROXBQR( i the F For Itself! How The War l Failed The Farmers 0 Inual Report of. the War Finance Cor po ration, Page 3.) "; Q. When wal this authority to make ? loans for cotton tobacco and other ^exports suspended? (t A. May 10, 1920, after propaganda ' from Washington had resulted in the planting of the largest crop of cotr ton and tobacco in the World's his. .{tory; after unheard of expenses had Ibeen incurred in the, planting and. " purchase of fertilizers; after the far-1 " mers had sunk nearly everything they | 1 had in the crop which many believed 1 would go -far toward making them, inoepenaem ior Hie. ? The resolution suspending the making of loans was as follows: "Resolv' ed. That at the request of the Secre' tary of the Treasury and pending ' further action by this Board, the 1 making by the Corporation of fur thcr advances for export purposes, '.except pursuant to existing commitments, be suspended." (See Third. " Annual Report of .War Finance CorIporation. Page 5, as signed by Hon.' ' A. W. McLean and his associates.) Q. Was the "request of the Secre, tary of the Treasury mandatory and . did it have to be obeyed? A. No. No more than any other board of directors has to comply with I ' a request made by one if its members. ' See Sec. 3. War Finance Corporation; r Act. appointing Secretary of the l Treasury as Chairman, but giving hira no more authority than any oth', er director. | It was provided in Section Six of said Act that the Secretary of thei : Treasury shall approve the by-laws | ' regulating the manner in which its general business may be conducted [ and the privileges granted to it byi law may be exercised and enjoyed,, but did not confer upon the secretary 1 any authority over his associates, except as to .by-laws, and these had al.ready been adopted and the CorporaItion had been operating under them for several months at the time the above resolution was passed. Q. Why did the War Finance Cor' poration suspend the making of loans for purpose of exporting agricultural products? a i A. It was stated in the newspapers J that the making of said loans was ] I suspended in order to reduce the cost of living. The War Finance CorI poration has never explained. <j. Did it reduce the cost of living to the farmers? 'i A. No, the farmers were-the losers, I and thousands were bankrupt after the 1920 crop was sold, i Q. For whom did it reduce thS cost of living? IV A. No one, so far as known. The price of manufactured articles was kept up until stocks purchased on high prices had been sold out. The result was, the farmer in 1920 and 1921 had to buy his cotton goods at a high price and sell his raw product at a low price. In other words, they "deflated" at the coat of the farmers of North Carolina and the South. ! Q. What was the effect of suspend' ing loans ? A. You know the answer to this ] question better than anyone else. Cotton, selling at 42 cents per pound, ' after the passage of this resolution, dropped to ten cents per pound, and lower. No one living then can fail to remember the misery following this sudden and unheard of deflation. | Mere words cannot describe it. No panic this country ever saw left its victims in bo hopeless a condition. . The brankrutey courts are full even i now, of merchants who were forced '! nut of business because the deflation had left the farmers with no mon- 1 > ey to pay their - bills. Thousands of farmers were rendered helpless, hope- ' , less and homeless. Devastation was i complete. The following figures tell i I the story in language which no one i can fail to comprehend: ! "The cost of producing the 19201' crop or lj.zvu.uiro hales was estiraat ed by the Government to be 37 cents ? per poond, or 32, 322,250,004. The I price received by the growers for that 1 crop as a result of drastic deflation < in the market values of cotton after < the crop had been harvested will ' not net to them exceeding 10 cents i , per pound, or $i>0.00'per bale, 14,270.00 'bales at ten cents per pound, $663,- < 500;000. This would indicate a net loss on the 1920 crop of 31.657.750.000, or| approximately a loss of 240 per cent.|( (fTom statement of J. S. Wannamakicr. President Cotton Association, in j Bearing before the Committee on Ag- , ^ mltuve, House of Representatives, ^^^jpngTess. See page 107.of report Bearing.) brought .about this rdin- , of 20-21? action of the Federal Hand the War Finance J1 ^ Federal Reserve. Hhy means of pro-1 to local banks.' ration with,! I ^Bnd and pnw ju millions " did ' [ox bo Home first. 3, NORTH CAROLINA 11 1 s armer a nee Corporation had loaned fundi at for 5 to 6 per cent, as it had power to do,, the Federal Iteserve would not have been able to charge more. Exporters would hare had plenty of money with which to get rid of the surplus cotton, and the local banks would have continued making loans to farmers;. The panic would thus have, been avoided. Q. Who was responsible for this awful loss to the farmers and merchant* of the South? A. The directors of the War Finance Corporation who voted for the resolution suspending financial assistance for export of cotton, tobacco and other farm products, or who, by Vtoiw inonfi'ow /v- Ai- ? 1-' it?;_l - >I?VL1UU WL Iimbicuuuil lu IDBir duties, failed or neglected to vote a* gainst, and thus defeat, the resolution when it was offered. Not on of them even warned the country that public credit had been cut off. Q. Who voted for the resolution? A. Mr. A. W. McLean and other directors of the Corporation. There is no record that any of them voted against it. The record is as follows: "The Directors of the Corporation, at a meeting on May 10, 1920, adopted ' the following resolution: Resolved, that at the request of the Secretary of the Treasury and pending further '*M tion by this Board, the making by the: Corporation of further advances fort export purposes, except pursuant totexisting commitments, be suspended."!7 (See Third annual Report of WnS Finance Corporation, Page 5, and sign-j cd by Hon .McLean and his associates)^, Q. Who signed the report to Congress of the adoption of such a re-, solution ? A. The Secretary of the Treasury/ A. W. Mclean, of Lunmberton, north ATTENTION ... Inasmuch as it appears thai / direction of Senator Sinwwgn <dr&tts, seem to have determined McLean, Governor to succeed II duty to acquaint the rank and xl Mr. McLean's record as one of 41 Corporation, For thin porpowW and answers printed elsewhere h We do not believe that the take the risk of placing Mr. Mcl 1923, for the following reasons: [ 1. His record as Director o f cannot be successfully defended b olina. The record shows that in I he failed them. 2. The rank and file of oui They resent the idea of hnvintr their Governor?wheether they ^ PRINCE business has gone too fi 3. In 1924 the Boll-'Weevil v ands of our farmers will work th ember of that year many of thei the Democratic Party, and they v undertakes to run Mr. McLean 01 4. We will need a Democratic who can make a rousing canvass mirers do not claim that he is pel make an arousing speech. They si 5. If ever the powers that be file to their assistance, now is the bosses to be paying off their ol and give the people a chance. Nit confidence in the Democratic Par 6. Next year this time our 1 It must defend itself as against scandal, the Norwood scandal, th< Maxwell deficit debate; and the 1 pen if, at the same time, the Boll the head of our ticket a man who who will be on the defensive himi fthce Corporation failure. More reasons could be given ficient.?Editor. Carolina, and Geo. R. Cookaey. i Q. Who was the only member on this Board from the South at the time this j resolution was passed. A. A. W. McLean of Lumberton, 1 N. C. ? Q. Did Mr. McLean represent the ? -* f ? ' rTrccn-CTrc rrrc iauiins Ui ATsruuna i ind the South? A. No He stood with other mem- 1 >ers of the Board not to make avail- 1 ible any more money with which to 1 export cotton. If he had been faithful 1 :o the interests he was appointed to 1 epresent, he would have vigorously 1 >ppoeed such action and if not sue- 1 CTsfut in defeating it; would have at I east placed himself on record as be- 1 ng unalterably opposed to such a 1 Ha grant injustice to southern cotton I ind tobacco farmers. 11 Q. Did the War Finance Corporation J lave any money on hand to lend to J otton exporters ? J A. Yes. #375.000,000..00. which waa our times as much as the entire cotton j :rop of North Carolina brought in '22. | Q. Were ther any applications or j legotiations for cotton loans pending it the time this resolution was paurd T A. Yes, about $70,000,000. In addition , Mr. J. S. Wannamaker of South Carolina, President of American Cotton Association, as a result of a vast expenditure of efforts and money, had at that time perfected the sale of 300000 bales of-cotton at 40 cents per pound, low middling, f.o;b. contentra- . tion points in the South to the mills of Europe. In the midst of thts transaction of the-War Finance Corporation cut out all loans as above shown, to cotton exporters and this trade fell through. Every bale of cotton which . failed of exportation, lowered the price jjtcrery other bale. The . price fell . 1 ^ . ro (! ABROAD NEXT j^Wednesda^Ev^ning^^^ 's Need to 10c per pound between II j^^HiO end December, 31, 1920. Q Hncai ' efore Committee on 111 ^^Hulture, Sixty Seventh Congress, Hr Aftei - n had gone to ten ^ ts per pvvnn - nd farmers through JK North . Carolina and the South were bankru->t^v:d Mr. McLean and . , fib associates make any effort to rerame the financing of cotton exports, which was voluntarily suspended by them on May 10, 19201 Th A. Not until Congress in January, 1921 adopted a resol.uirn directing the Corporation to r am activities, end even then nothing was done until it was too late to help the farmers. (See Fourth Annual report of War Finance Corporation, Page 1) Q. Did Mr. McLean and his associat- J es, make any loans to the big corpora- bu linns erf fY?e nnnntwt foj Bub. Yes, the railroads, public utili- Wi ties, and industrial corporations, bor- ;e3 rowed about *272,000,000.00 as against , approximately $80,000,000.00 loaned on warehouse receipts, cattle loans and be export loans. (See Page 9, Fourth an- be nupl report-of War Finance CorporaQ. Were loans made by Mr. McLean] 'es and his associates to agencies of his nQ board to be loaned direct to cattle ma farmers of the West,? I A. Yes, $7,827,278.^6. See above re-' ? port. Pages 15 to 21 inclusive for list Of] these loans, name and address of,! and amount loaned to, each borrower, ha: Q..Did Mr. McLean and his associat-. bo; ps make any loans to the cotton or to tobacco farmers of the South between May 10, 1920, and Februray 1st 1921 ? . A. They did not. I Q. Did Mr. McLean and his associat- * cooperative associations any loans in ur. K? ? ' Democrats U1 l the office-holding class, under , fe Governor Morrison and AVD. lis appoint Hon. Angus Wilton tfrison in 1925, we deem it our ne: Be of the Demoratic Party with .. r, le Directors of the War Finance , "refer the reader to the questions 01 n this paper.' ms Democratic Party can afford to .ean at the head of ita ticket in op be f the War Finance Corporation y,, efore the farmers of North Carthe hour of their supreme need , a th< r people are unusually restless. a set of office-holders to name -(lis cant him or not. The CROWN cot ,r- - pe< -ill hare done hia worst. Thouseir 1924 crops at a loss. In Novm will be ready to vote against "a rill surely do so. if the Machine tei rer them. ! candidate for Governor in 192i jjl . Mr. McLean's most ardent adrsonally magnetic or that he can ly'he is too cold, should seek to call the rank and time. It is certainly no time for me ligations. Let them stand hack Th ithing short of this will restore Th 'y- ste Party will be before the people. high taxes, against the Watts ? Cooper scandal, the Morrison- tre Lord only knowa what will hap- so -Weevil hits us, and w* have at or cannot appeal to the people, hut ... self on account of the War Fin- , , bat we believe these are suf- 'nt [ twi ; . ! i 1 bei lid of cotton farmers? I A. Not to amount to anything. Cer-1 tanly they did not until after most of She farmers had been forced to sell their cotton to the manufacturer or :otton speculator, and then it was ever- up lastingly too late, lite local banks throughtout the 'country, on account >f the inactivity ol the War Finance 1 Corporation has been forced to call the eni loans made to farmers, and they in turn had been forced to sell at what- . sver price they could get. When maney became available, the cotton far- thi: iters did not have the cotton; the spec- pri lator or manufacturer had it. prI Q. Were there any strings tied to ,e\ the loans actually made to the coop- , srative association? A. Yes, Mr. McLean and his asso- *tt riatea stipulated that the association Ti nroold have to sell its cotton at stated gjv periods, irrespective of the prices prebailings* the time, and liquidate the loans, and if in the opinion of Mr. Mc- evc Lean and his associates, the associa- wh lion was "not at any time marketing Efie products of its members with sufficient rapidity, the Corporation < War Finance Corporation) may itself dispose of such portion of the pledged 1 commodities (cotton) as may be nee- ant rssary in order to comply with the terms of the agreement." (Fifth Anpus) report of the War Finance Corporation, ?age 8.) ed Q. What was thd effect of this stipu- ma lationT chl A. It made it impossible for the cooperative association borrowing from it to carry out'any general holding ab< movement which would be calculated bdi to increase, or hold up, the price of . ? cotton. When the cooperative associations 1 learned that they could be forced to mo sell at stated periods, whothcr prices gel (Continued on Page Four.) Sa . ' V ' .t' lonti $ii cembe- 12th, 1923 led ail MERICAN LEGION TO BUILD HUT JGION HUT, TOWN HALL AND WOMAN'S CLUB e Legion Boys Will Build Hut Which Will Care for a Long Felt |W?nt \t a meeting of the American Le< in held on last Saturday night the ys definitely decided they would Lid a hut, which will contain offices - me town oo*ra, rooms for the man's Club, rest room (or the ladwho may come to town, and best all, it is hoped arrangement will perfected whereby a nurse will on hand at all times that the ladcoming in from the country can ive their babies in catre of the rse and go about any business they iy have on hand. rhe second floor will be used as an litorium and will seat 750 people, ring the town something which B long been needed. Of course, the gs will not have sufficient funds complete this splendid building, t it is believed the friends of the glon will rally to their rescue and is make the completion an easy dertakir.g. (Ve heartily congratulate the boys, 4 feel sure they have made .no misce in the estimate of their friehds. LADIES BAZAAR Don't forget the basaar to be held ict Satnfday by the ladies of the ptist Church. You will find a world fancy articlos, suitable for Christis presents, both for the men as II as the woman. Doors will be en at 11 o'clock, and dinner will served. Let all of the men notify i good woman of the house when ?V 1 nflvp Sahitv4ow mnminrv + sy will not return for dinner,- as >y expect to lunch -with the Bapt ladies, and every man from the intry is advised that they are exrted to dine with them, also. Bazaar will be held in the Jackson rage salesroom. Be sure to atid. JETING OF PARENT. TEACHERS ASSOCIATION The Parent-Teachers Association t on Tuesday, Nov, 27th instead of ursday Nov. 29th, that being anksgiving day. Mrs. S. G. Winad told some plans for beautifyr the school grounds by . planting es, shrubbery and flowers. She alasked any one having trees, shrub rambling rose slips to donate for s purpose to report to her. dra. W. A. Bradaher made a very eresting talk on co-operation besen parents and teachers. [Tie president urged that each mem solicit new members. Hereafter i association /will meet the last ursday of each month. Mrs. A. B. Stalvey, Sec. VTTY MAKES THINGS HUM." Phis play was given last Friday evng by the young folks for the lefit of the B. Y. P. U. and in d and in truth, Patty did make ngs hum. It was well worth the ce, and every one is high in its lise. The young people did themves proud, and were greeted with lull house, nothwithstanding other Tactions were on for that evening, lese young people will probably e the play in other places, and we nt to say if you wish to enjoy an ming of real fun, dont miss jt on?n-cvojva?wiumu ,yuui rcavu. ^-o : WRENN-GLEfCN y, [Tie friends of Mr. W. W. Wrenn 1 'Miss Mary Gleen were treated a surprise on Thanksgiving day, en it was learned they had mortorover to Halifax, Va., and were rried by the pastor of the Baptist ireh. They returned to Roxbdro i are living at their country home >ufc two miles southwest of Rox>o, on route 1. o?; ? fcnox or Stetson Hats appeals to ?t folks, they will appeal to you, c your next hat from Wilburn & tterfield. V? ^ ?- j " .0 PER YEAR IN ADVANCE ' 1 No. 50 7riend THE TOBACCO. MARKET Prices Were Off Last Week, But Bet- " .-J3 ter This Week. For some cease there was a-stamp in prices the -first of last week, bat 1 this slump was not confined to Eesboro, but was general in the old belt, all markets feeling it. However, we are glad to say prices are just aboot back where Ithey were Ifjijore the slump. There were heavy sales Masday and Tuesday, and while the average was not as high, the cause was ! not in the price, but because of the large amount of common tobacco. One of the best sales reported was ! that of James Tally, who sold at the Hyeo. He brought in a load in his : iFord, /which netted him $325.00 Tobacco has been in bad condition, owing to the warm damp weather, * " but we believe just as soon as it clears up and turns cold you will see the market in as good shape as it has been during the season. ROXBORO WINS GAME | FROM BROOKNEAL >, The Roxboro Town Basketball Team was winner by a 31-21 score" i)ia the opening game of the season /last Friday night. The game, played , in Brookneal, with the Brookneal town Team, was hard fought throughcut, the Ttsrboro bovs getting an . early lead which they never lost. Brookneal's team waseomposed of the following: Elmer Clayton, Gordon Kent, Eoimett Bates, William White and Bennie Ginther. Roxboro: John Morris, Kenneth Oakley, James and I Mayiiard Clayton and Charlie Harris. Scoring, Field Goals, E. Clayton 3, i Kent 3, Bates 3, Morris 6, Oakley V if. Clayton 5, Harris 3. Foul Goals, ' |Je. Clayton 3, Harris2. " ._ II The Roxboro Town Team will play I j Bethel Hill High School Saturday, December 15th, in the Winstead Warehouse. , SCHOOL NOTES A finft Tpflphpm' Mcofinnr law*- Qn* urday. Only seven abent, six on aecount of sickness, and one called a- _ > way. Two were late on account of car trouble. We are pulling up oit our dollar for the Association. Don't forget, you 25 who have not paid, that you are honestly due this dollar. The Colored teachers' Will meet this Saturday. Let every one be present. 1 will be with you at roll call and | have something important to discuss. . Each teacher will please get the $10 I worth of seals that you are asked to sell for this county. It means much to take care of' the sick and you ought to do your part. The schools of the County will not close before the 21st of December . and only-two weeks will be given for holidays. We expect all schools to open on January 2nd. Where teachers have a long way to go home, it might be permissible to close and open on more suitable- dates. BOX PARTY AT HELENA There will be a box party at the Helena High. School Friday night, Dec. 14th, for the benefit of the church. Everybody invited. A CORRECTION ?? ' In our last issue we stated that "the. !contempt case against Mr.,G. E. Harris and wiife was continued." We regret that Mrs. Harris* name wa* in this article, as Mrs. - Harris says she has nohing whatever to dj with the case and her name should not have, appeared. We gladly make the r correction. " MR. CLAYTON KILLS FAT PIG. - o Our good friend Mr. Weldon G. Clayton reports the killing of his pig, which weighed 468 lbs. He jays this was the fattest pig he ever saw,, it produced 11 gallons- of lard. Oi DR. S. RAPEORT, of Durham will make a special visit to Roxboro Wednesday. December 19th, to examine e'yes and {it glasses. He will be at Davis' Drug Store : // . This will give you an opportunity- * of getting a new pair glasses for Xmas. " pioipatteg y UinqfjM a?ud pfo stuea eqt 1" iuni(Oguo3 (sag i>|o?j ^ 53