The Montgomery advertiser., 1907-10-26
PANIC IS FELT HERE
FARMERS BECoME APPREHENsTvE
 AND SELL COTTON.
Cotton Association Sends Telegram Urging PInnters to Hold The staple For Higher Price, Ac-
 cordinx to Agreement.

Effects of the money panic in the East are already being felt here ana as a result the sale of cotton during the | last week has been enormous. as com pared to the previous weeks this season. While the banks of this sec ton claim that they have ample money with which to handle the crop. they admit that the stringency of the
 money market threatens to be g seri- Lupus hindrance. F As a result of the enormous amount of cotton which, has been placed on the
 market the price has gone down until the fifteen cent minimum price fixed by the Southern Cotton AsFociauon
 seems far in the future. and bat q frac- tion over ten cents was offered in the
 local market. and in other sections or
 the state.
 A representative of one of the largest cotton firms In the state returned from l a buying trip in the smaller cities | yesterday and stated that practically all the cotton being carried to ware houses now is sold as fast as IL IS weighed and classed.
 "This is due" said the buyer, ito the | fact. that creditors are pushing the | farmers, and are demanding that they sell and pay up their debts. Money lis very scarce in these towns, despite the fact that claims are freely made | that there Is money in plenty.
 Those who are fortunate enough to 1 have a sufficient amount of cash money on hand to be able to store their cot I ton and hold 1t are uneasy, and large number of these even are selling.
 They are afraid that there will be a general panic. and that the market will go still lower. M
 srhe offering of this unusually large amount of cotton, together with the
 harassed condition of the money mar | kef is reSponsibie for the steady de- cline in the market during the last I few days. Spinners are beginning to take fresh courage in the face eof the weakness shown by the producers and win let no opportunity pass to force l the market down as low as possible. I There Is great uneasiness in the country districts over the course eot- ton has taken, and in some places the banks are going very slowly in advanc- | ing money was told in one city that limits are being piaced on advances.
 and that 1t is possible that these will
 be cut still lower unless there is some relief within the next week"
 r. Tn this connection a telegram re- I ceived by Charles L. Gay. president
 of the Montgomery County division
 of the Southern Cotton Association, l from Harvfe Jordan, president of the | association at large. is of interest. President Jordan urges the farmers to
 hold their cotton. declaring the present financial stringency Is purely tenn porary.
 The telegram follows: l Atlanta, Ga, Oct. 2b, 1907. aC. L. Gay, Montgomery, Ala
 1 Encourage owners to hold. Get local bankers to cooperate. pepres- sion artificial and temporary.
 | "Harvie Jordan" Local bankers say that deposits are | lighter now than they were at this. time l last year, but that there is no disposi- ton on the part of depositors to draw I out their money The shortage in the deposits fin Montgomery is attributed to l the lateness of the cotton crop. and the disposition on the part of many plan | ters to hold their cotton.
 Retailers say that their business is practically the same as at this time | last year, but wholesalers allege that there is disposition on the part of small country supply men to withhold orders for the present. The cause of l this is not definitely known, but it is believed to be result of the unsettled
 condition of legtsiative affairs in the state.