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FINDS BANKS WILLING,
BORROWERS CAUTIOUS
Prominent Writer Refute*
Statements Bankers Are Re¬
fusing Sound Loans — De¬
scribes Reasons for Reduced
Volume of Credit.
FIGURES supplied by typical, wMl
* managed banks in different parts of
the country show that a high propor¬
tion of all applications for loans have
been granted in the past year or two,
says Albert W. Atwood In a recent arti¬
cle in The Saturday Evening Post on
“The Idle Dollar.” Excerpts from Mr.
Atwood’s article follow:
“Frequently banks state that as high
as 90 per cent of all such applications
are granted and for from 60 to 75 per
cent of the amount asked for. Allow¬
ing that the bankers make these figures
as favorable to tbetr own. case as poa-'
• sible, it seems strange that we are told
again and again that banks are not
lending at all.
“If we take Into account the whole
class of regular bank borrowers, the
plain fact is very few want to borrow
yet For the word ‘borrow’ is merely an¬
other name for the word ‘debt’ and we
face a great world-wide drive to get out
of debt
"Ah experienced small-citjr banker,
asked if banks were lending freely
enough, wisely replied: ‘The really
good borrower does not wish to borrow
now. In fact, I think our customers are
making a remarkably fine showing Is
paying off their loans, especially loans
of long standing.’
The Shrinkage ef Credit
“Or it it • think of business concern*
rather than of individuals, it is con¬
servative to say that those able to main¬
tain high credit ratings have been moat-
2y the ones able to maintain ample cash
resources and, therefore, least in need
of credit. As prices and cost* fell many
concerns found themselves with plenty
of cash because of the shrinkage in
operation*. Cash resources were still
further swollen by reduced dividends,
and smaller inventories made bank bor¬
rowing still less necessary.
“Expressed in another way, banks
cannot expand credit, they cannot make
loans, unless there is a demand for the
same. Fundamentally, the business
transaction makes the loan, the loan
does not make the transaction. It is a
mistake to try to force upon business
organizations funds which they do not
need. Under the circumstances the
‘idle dollar’ is a natural and proper
enough phenomenon. A demand for
credit is difficult to create artificially,
and there is always danger in so doing.
“Banks must be liquid enough at all
times to pay depositors. The idea of a
commercial loan Is that It represents a
self-liquidating process in business. If
the banker makes only those advances
that are inherently sound, aud selects
his maturities wisely, he will have in¬
coming funds to meet demands.
Government Lending
“As everbody knows, the Govern¬
ment has vast lending agencies, for
home owners, farmers, and the like.
These have nothing to do with the sub¬
ject of this article, except that all such
Government operations would be im¬
possible If the banks did not lend the
Government money for the purpose.
“No one can set a time when borrow¬
ing will be resumed. But it will come
when men once more feel that condi¬
tions are sufficiently settled to warrant
them in taking chances, in entering
upon deals, and in trying to make
money.”
Mr. Atwood says that it may be that
the banks are overcautious now, just
as they were overconfident in 1929, but
calls attention to the fact that until
a little more than a year ago banka
were failing “partly because they had
loaned too freely, and were being
criticized right and left for precisely
that fault.” He adds:
“Indeed the banks which had been
cautious in their lending policy came
through the crisis safely. Under such
conditions it is utterly useless to criti¬
cize batiks for not making loans. After
the experience they had for several
years, especially in 1932 and 1933, It is
only natural that they should relax
their requirements very slowly and
gradually.
“Unfortunately, many of tbe applica¬
tions for loans are not people who
want temporary banking accommoda¬
tion for three or six months and are
quite able to meet their maturity dates,
but are from those who really need per¬
manent capital They are busted and
they want someone to stake them to a
new etart. What they really seek is a
partner to furnish them with long-time
capital. But depositors insist upon be¬
ing paid on demand, and, therefore, it
it a grave question whether banks
should tie up their funds for any length
of time."
HOW ONE FARMER
HELPED HIMSELF
A farmer accustomed to keeping
records found that it cost §16.50 to
produce an acre of corn. His average
yield was 33 bushels, selling for 50
cents per bushel. On thl3 basis he wa3
producing without either profit or loss!
A study of his costs indicated means
by which the yields might be increased
without proportional expenses. By mak¬
ing use of facts discovered at the Ex¬
periment Stations, the farmer secured
an Increased yield of four and one-half
bushels per acre (37% bushels, instead
of 33). By increasing the yield and
holding down expenses, this farmer
was able to make a profit of six cents
per bushel.
C LEVELA ND C OURI ER. CLEVELAND, GEORGIA,
GROW FLOWERS TO
USE IN BOUQUETS
They W# Thrive With Little
Care in Rows Alongside
Vegetables.
Flowers and Vegetables Together, j
Flowers in the home, on the dining!
room table, in the Hiring room, on the ;■
verandas are row an important part
of home life. The great wealth of •
this material comes from the annuals, j
Many of them while useful for provid-:
ing cut flowers ar.e not particularlyi
valuable as decorative garden blooming subjects *
in beds or, borders or their
period is of such abort duration that
they are not good material for a Ions :
season planting. j
Americans have taken very kindly
to the European idea of (fee cutting
garden and the old ecntinenttl idea of
interspersing Cowers and vegetables in
the garden. Growing annuals for cut¬
ting in rows in a vegetable garden
with the Same culture as the vege¬
tables is a most practiced plan giving;
better results often than the flower!
garden beds which will tbe not vegetables. receive j
as good cultivation as
Alternating rows of vegetables and
flowers ie the commonest practice. An¬
other is to have an occasional row of
annuals or to reserve space at one
side of the garden for them.
AH of the common annuals may be
grown fins way. The principal to them. pre¬
caution te be taken is thw
Usually they are sown directly in tbe
rows where they are to grow and the
sorts that make heavy growth swch
as zinnias, African marigolds and cos¬
mos should be thinned to 3 feet japart.
The failure of the cutting garden is
usually attributable to the fact that tile
seed was sown and the plants left to
struggle a® leaf, lettuce and radishes
so often are, only a survival of the
fittest .being of an: value. This is a
waste of material and the results are
not adequate to the space occupied.
It is easy to get good plants and b
good crop of flowers or vegetables by
thinning and it is certain that best
results will not be attained unless they
are thinned.
LITTLE GARDEN
WILL GROW A LOT
Five Foot Square Will Produce
Many Fine Edibles.
Lack of available spar* causes
garden, but the family which has
even a small amount of backyard
space, can and should utilize it, no j
matter how small it is.
Any space from, a 5 foot square up ;
may be profitably tilled into' some
kind of a vegetable patch. Thought
and planning must, of course, go into
such- a tiny undertaking, but with
careful consideration of the crops
most suitable to succession, a sui>
prisingly large amount of fresh, suc¬
culent produce may be grown for
the table.
This problem of succession, which
mean to follow one crop by another
A Small Kitchen Garden Takes Up
Only a Corner of Yoar Back Lot.
in order to get two or even three
products from the same pieoe of
ground, is a fascinating one. For in¬
stance. one row may be planted wilh>
radishes early in the. season, and
when they have been harvested,
beans may be planted. Also a‘ com¬
panion planting, early pear in the
tame row with carrots, the former
coming up and used before Hie. car¬
rots are ready for the table. MSS' a
packet of and early have radishes with a late
variety, two crops in the
same row.
As an alternative an early crop of
spring vegetables may be grown and
used, leaving the ground available
for annual flowers. Radishes, leaf
lettuce, young onions and a toff or
two of greens (spinach or mustard)
are good suggestions. They wIU be
ready for the' table quickly, and
leave the ground in fine condition for
flowering plants or bulbs.
Dahlias in t£e warmer parts of the
South may be planted now.
Spade the gar-dan and let the soil
weather lor two or three weeks.
fi .
ONE HUNDRED
YEARS AGO
Atlanta, Georgia, 1837, was then
named “Terminus,” later MAR
THASV1LLE, then the BIRTH OF
ATLANTA grew out lof the building
of the ‘vVeetern & Atlantic Railroad.
And now 1937, ATLANTA. GEORGIA,
stands the EMPIRE UITY of the
SOUTH.
Beginning October 7th to 16th,
THE SOUTHEASTERN FAIR will
Reiterate The now FAMOUS AT¬
LANTA With a CENTENNIAL
CELEBRATION.
And the reasons for such a cele¬
bration are these facts:—
Three railroads were chartered
by the GEORGIA Legislature in the
year 1833, as follows: THE CEN¬
TRAL, THE GEORGIA, and THE
MONROE.
CHARLESTON people were on the
aggressive to extend thetr road be¬
yond AUGUSTA, and when they hek)
a celebration at the completion or
the road, the remark, of the speakers
dealt largely with the subject of
extension.
In October of 1835 at a mass meet¬
ing of the citizens of CHARLESTON
a congratulatory resolution was sent
to the people of CINCINNATI, urging
the people of Cincinnati to join In
a trans-montano railroad from CIN¬
CINNATI to CHARLESTON. The
efforts of CINCINNATI and
CHARLESTON culminated in a con¬
vention held on JULY 4, 1836, in
KNOXVILLE, TENNESSEE. More
than nine STATES were represented.
GEORGIA had sixty delegates pres¬
ent. The object was to formulate
plans and to devise ways and means
for the building of a railroad from
CINCINNATI to CHARLESTON.
We know, of course, that the proj¬
ect of a route from CINCINNATI to
CHARLESTON did not materialize.
We know further that the Georgians
went back home aud began to devise
ways and means of carrying ont the
oft-repeated message of GOVER¬
NOR LUMPKIN for a railroad of
their own.,
When the Legislature met in
GEORGIA in November, 1S3G, GOV¬
ERNOR SCHLEY sent a message
Balling attentio; to the projected
railroad fror. 1 :e CHATTAHOO¬
CHEE to tl; NESSEE line, and
he signed oh -mber 21, 1836, his
approval to • -iginal act author¬
izing an apj, .ition for a survey
and part cor. (tion qf a railroad
to be known as “THE WESTERN
& ATLANTIC RAILROAD of the
STATE of GEORGIA.” Another
*680101100 at the same session au¬
thorized the Governor to ascertain
PiPon what terms the STATE of
TENNESSEE would permit the ex¬
tension of the W. & A., when built,
ta some point on the Tennessee
|Uver.
MAY 12, 1837. GOVERNOR
SCHLEY on May 12, 1837, contracted
with. Lieut,-Col. Stephen Harriman
Long to males the original survey.
Col. Long war- perhaps the best
equipped man in the United States
for the duties assigned to him.
SEPTEMBER 18, 1837. The orig¬
inal act authorized the building of
the railroad from the TENNESSEE
line to some point on the CHAT¬
TAHOOCHEE RIVER. On Septem¬
ber 18, 1837, Brisbane (Assistant to
Col, Long) wrote a letter to GOV¬
ERNOR SCHLEY and suggested
that the railroad be continued across
the CHATTAHOOCHEE and to the
top of the ridge eastward toward
DECATUR some seven miles from
the river. This point is the present
git® of Atlanta. The Assistant En¬
gineer urged the adoption of thl*
suggestion,
NOVEMBER 7, 1837. Under date
of November 7, 1837, Col. Long made
his final report cn the' survey with
estimates of cost* and his recom¬
mendations. Ib this report he stated
that approximately 25 miles of the
road, near the ETOWAH RT UR,
was ready for the letting o!
tract for construction.
NOVEMBER. 1S37. GOVERNOR
SCHLEY, in November, 1837, sub¬
mitted the report of Col. Long to
the Legislature and urged the build¬
ing of the railroad an additional eight
miles eastward from the CHATTA¬
HOOCHEE (the present site of AT¬
LANTA))
NOVEMBER, 1837. Following tht
receipt of GOVERNOR SCHLEY**
message, the Legislature on Decem¬
ber 23, 1837, authorized the building
of the railroad from the TENNES¬
SEE line to the CHATTAHOOCHEE
RIVER, and that it shall continu*
from the southeast bank of the
CHATTAHOOCHEE RIVER to some
point not exceeding eight miles, ag
ghall be most eligible to the running
of branch roads to ATHENS,, MIL
LEDGEVILLE, FORSYTH and CO
LUMBUS.”
At the terminus of the road a lit¬
tle village gradually grew into ex¬
istence and finally acquired the
name "TERMINUS,” afterwards, it
honor of GOVERNOR LUMPKIN’S
daughter, it became MARTHAS
V1LLE, and now is ATLANTA, GA,
©@02)!BS) 0 ® 00 Facts That Concern you
FOR THE FARMER r FOR THE WORKER:
A NEW 100 MILLION A MILLION NEW
DOLLAR MARKET RESPECTABLE JOBS
HIS CROPS FOR THE TAXPAYER:
A MILLION DOLLARS A OAY
IN TAXES PAID BY BEER —
TO LIGHTEN HIS BURDEN !
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CITY AND STATE.
There’s Even A Wheat Field At The World s Fair
§*g|
; / / a® WHEAT mi FIELD
«■
WOJB58 6AS8W
mi
What is probably the costliest
land ever used for growing wheat
is the ene-third acre ‘wheat field”
of tfie Continental Baking Company
at the New York World's Fair 1939.
The field, in the heart of the
Fair grounds, is located significant¬
ly at the intersection of the “Ave¬
nue of Pioneers” and “Agriculture
JRow,” not far from the famed
theme symbols, the Trylon and
Perisphere.
American 0< Nitrate Industry Symbolizes South’s Progress
Growth in Past 1
Exceeds All Previous
Records
“Keep All Your Bets on Dixie”
advises a recent editorial in the
Progressive Farmer, which calls at¬
tention to a report by the U. S.
Census Bureau showing that the
Southern states are gaining in
population twice as fast as all the
rest of the country.
Economists have been quick to
point to these figures as evidence
that industrial expansion in the
South in the past decade has been
responsible in no small measure for
the gain in population and oppor¬
tunity in the South.
Among the new major industries
now located in the South, paper
*nd chemical production are by far
the largest. Judging by the prog
|he Southern paper industry
The wheat was planted late last |
September under the direction of ;
the New York State College of Agri- j
culture of Cornell University. Grov
er A. Whalen, president of the Fair
Corporation, and M. Lee Marshall,
president of the baking company,
presided at the dedication ceremon¬
ies. •»
Approved grain-growing methods
were followed throughout. The j
is making, tinder the impetus of
Dr. Charles H. Heriy’s pioneering
research, it is anticipated that
America mar soon be independent,
of foreign pulp supplies. What this
means to the South is indicated by
government figures showing that in
the year 1934, America imported
361,825,000 worth of wood pulp,
representing 1,612,478 long tons.
The chemical industry, widely
hailed as the great industry of the
future, has also located many im¬
portant units in the South in the
last ten years. Outstanding among
these is the giant nitrate plant at
Hopewell, Virginia, which has made
America independent of foreign
sources for its nitrogen supplies.
Tbe Hopewell plant was first
placed in operation in, 1928. and
now produces a large part of the
nation’s commercial nitrogen. It is
the largest plant in the
manufacturing nitrate of soda,
uAtoctrwycD u-uc
grain was drilled, with complete fer
tilizer applied at, seeding time, and
was top-dressed recently with Area
aiau nitrate of soda. This is the fa
miliar American nitwit; ■ produced
at Hopewell, Virginia.
The crop, which will :.j harvest¬
ed in midsummer, is <•: ing much
interest on C” part of tors from
the South and otic r actions of
the count ry.
Above: A, plane view of the huge
Ame icsi irate plant at Hope
well, Va., now celebrating tenth
anniversary.
which is used extensively by South¬
ern farmers for side or top-dressing
cotton, corn, grain, and other crops.
The production of this commod¬
ity is a vast industry’, directly and
indirectly contributing millions of
dollars annually to the payrolls cf
Southern workers, and adding thou¬
sands of carloads of freight to the
traffic over Southern railroads. It
has also been a principal factor in
bringing about lower nitrate costs
to Southern farmers, and serves as
a valuable asset to the nation's
defense.
Southern leaders agree that this
industrial activity, and its further
increase in the coming years, will
far in helping the South achieve
j its economic destiny. - J
