The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-13
THE COTTON CROP PROBLEM
Secretary Carlisle Solves a Critical
Situation.

obtaining 500 O,OOO,OOO, Necessary
for the Marketing of the Great Sta
pie, Was Very Remote-But the
Prompt Action of the Treasury De-
partment Removes at Once a Posi-
bility of Disaster, the Extent of
Which in the South Would have
been Incalculable.
New York, Aug. 12.-Bradstreet's says
to-day: Especial kilograms to Brad
streets and information received through
trade and the press within few days
| have indicated likelihood of crisis in
| the cotton regions, owing to inability of
! banking institutions there to advance
! funds necessary to move the cotton crop
with anything like the usual freedom.
BANKS UNWILLING TO ADVANCE.
1t had become plain that few, if any,
southern banks would, if they could, ad-
vance funds to cotton buyers to enable the
| latter to hold the staple for an advance in
price, and recent disturbances among
southern financial institutions began to
raise the question how the cotton crop
was to be moved at all.
ENORMOUS COST OF COTTON PRODUCTION.
|
| packing, ginning, pressing and bailing
| cotton, and about $50 100000 for gather
ing and preparing for shipment crop of
| 100000 bales, it becomes plain that the
| phrase advancing funds to move the
| cotton crop" has a real and living mean
| ing. A considerable proportion of the
| cotton crop is raised by tenant planters,
and owners of land, as rule are ex-
| pected to make the necessary advances
to the tenant to provide for picking, gin
| ming, pressing and bailing. But with
| southern banks using clearing house GER
tificates and, in many instances, permit
ting depositors to withdraw only trivial
sums of money daily, the problem of how
to borrow $4,000, 0O0 or more to move the
| cotton crop had become a sectious one.
PROMPT RELIEF FOR THE SITUATION.
1t is with considerable pleasure, there
| fore, that Bradstreet's learns that an ar
rangement was made yesterday by the
! Secretary of Treasury, in view of the
| emergency referred to, by which the
| government, on the deposit of currency
with the sub-treasury at New York, will,
on being advised Of that fact, telegraph
| the sub-treasury at New Orleans an
1 order to pay like sum of money in silver
! dollars. This arrangement must go far
to relieve the financial stringency at the
| south with respect to the cotton crop.
CHARLESTON AND THE COTTON CROP.
Charleston, Aug. 12.-Careful inquiry
| among bankers here elicits assurances
that they are not anticipating any crisis,
and that the Charleston banks will be
abundantly able to furnish the money
which may be needed to move all cotton
that can be shipped to this port.
AUGUSTUS RIsIBILITIEs AROUSED.
Augusta Ca, Aug. 2-Bradstreet's
telegram about probable crisis in the
lou Z
and cotton men say the money needed to
| start the crop will be secured with ease.
| Farmers are amused at the idea of their
| not holding over enough money to pay for
| picking in case they need it. One quar-
ter of the $50, 900 needed is already in
the hands of farmers in the shape of bag
ging and ties.
| THE NEED OF SUCH SUM DENIED.
1t will not require even one-twentieth
of $4,000, 900 TO start the crop, which will
| command enough cash money to complete
the sting, pay back advances, and
| put the farmers in condition to hold cot
| ton; for it is a well-known fact that the
| farmers are better able to live at home
| this year and not spend money for pro-
visions than at any time since the war.
ALBANY BANKS FULLY PREPARED.
| Albany, Ca, Aug. 12.-The banks assert
| their ability to furnish all the money
necessary to meet the demands which the
| purchase of the crop entails. The low
| price, however, will have an apprecia BILE
| effect on the receipts. The average far
mer is more independent this season than
for many seasons past, and is in better
position to hold his cotton for better
! prices.
EXCITEs CONTEMPT AT MOBILE.
| Mobile, Aug 12.-Relative to Brad
streets report of the probable crisis In
l Al L.,
| here has hooted at the idea. One said
| Bradstreet was little previous, and that
money to move the crop would not be
needed for three weeks. The banks are
preparing to handle the crop, and will be
in position to do so when the time ar
| rives. Another bank president said that
so far as the Mobile district is concerned,
the money will be forthcoming when the
cotton is ready to move.
MONEY PLENTIFUL IN MOBILE.
'There has not been day since Decem-
| Der" said he, ''That we could not find
| S25, 900 in currency to advance on cotton
without giving the matter a second
! thought. There is an abundance of
money in Mobile and it will come out
when the cotton is ready to be brought TO
this market"
| SURPRISE EXPRESSED AT MEMPHIS
| Memphis, Tenn, Aug 12.-Bradstreet's
| report to the effect that crisis was i'm
minent withregard to the cotton crop, was
| a great surprise TO the bankers and mer-
chants of this city, the largest inland cot
! ton market in the world. Instead of
crisis, the solution of the financial problem
| is looked for confidently with the advent
| of the cotton season. The opinion is unan-
| imous that there viii be ample funds to
move the cotton with case and expedition
EVERYTHING GROWING BRIGHTER.
| The situation is improved in this city
! and better feeling exists. AS an evidence
of this it may be stated that for the past
! two months New York exchange was dis
counted at $50 on the $4,000 by Chicago,
which virtually prohibited the sale of
| Chicago products; to-day New York ex-
| change was taken at par, and many large
sales were made as consequence.
MONTGOMERY WILL HANDLE THE COTTON.
Montgomery, Ala, Aug 12.-Brad-
| streets report that the southern banks
| and factors would not be able to handle
the cotton crop this season on account of
the scarcity of money created some com
ment in commercial circles here In
| terviews with bankers, cotton factors and
| cotton buyers of Montgomery elected the
unanimous opinion that the cotton of the
| Montgomery district would be handled
| here this season without friction, just as