The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-11-05
THE SOUTH IN A
STRONG POSITION
A Feeling of Confidence
Prevails Generally
NO INTEREST SUFFERS
Manufacturing Industries Are Wei!
EnlDioyed-Npre Currency Needed
to Move the Cotton Crop, but
Conservative Marketing Makes
.Lo cr,..;na Ia
the Situation Easy.

Especial to News and Observer
Baltimore, Oct. 31.-Letters from
representative bankers of the Sourh
written within the past ten DAYS ana
published N this weeks, issua IF tEc
Manufacturers Record sound q strong
not Of confidence and reliance rather
notable at this time of stress in the
money .oG er of the country Il IT
consequent uneasiness III other par's.
Few of the letters und.;tlNc to view
the South as a whole, but. dealing
with neighborhood conditions as relat-
ed especially to the cotton crop, they
present al encouraging prospect GER
orally E-oc. Atla-.ta comes tic state
meat that the money situat.o. :. the
South IS favo.ab.c n comparison with
other sections. as Souther. banks as
position tC handle the cotton crop and
currency is not as scare as IS usual ct
this season. In Georgia the manufac-
tuners n merchants are thriving. the
textile industry is in good condition
as to future orders and cotton is
bringing 6 renaunerative price. Bank S
at Wilmington, N. G.. have larger de-
tC1hOi - SikoAl Sf>A 0SloiS " Iii> AciAi oSN
are doing a large freight and pas
senger business and although in one
or two lines some decrease in the vol
ume of business is indicated. business
is still healthy. At other points,
though money is scarce, legitimate
ines of trade are being properly cared
for and there is a prospect of good
business for some months to come, in
spite of g tendency to slow down.
OYer-trading and u~nWarranted expan-
sion of credit have not prevailed to
the extent as they have in the East,
side speculative operations have felt
the tightness of money, no one has
suffered materially for legitimate bus
mess needs. Banks in Arkansas.
where everything seems to be prosper
ing have. in view of the disturbed
condition Of the mOney-narkct. be-
come inclined to ~Scrutinize security
values closely, to reduce the lines of
credit anG to advise thor customers
against undue extension of opera
tons.
As to the ability Of the South to
finance the present cotton crop. there
is q general consensus hat more or
less money is needed from outside.
The South is growing richer every
year. its m are building improv-
ed ware houses and are mark citing
their crop much more scientifically
than they ever cid before. but while
the necessity for outside aid is be-
coming less Imperative n will con-
tinuc to lessen With 4 few years more
of good crops at the prices now pre-
vailing tho South is hardly ready yet
even to hold bacf a very large part Of
its cotton without aid from outside.
At present. if the crop were placed on
the market all at once, there would
not be sufficient available funds in the
whole country to move i and neither
the banks of the South lone nor the
banks Of the East alone are able to
furnish the vast amount Of money re-
CURED t. move the crop under existing
conditions, and the good prices for it
this year call for a greater amount
OF money than ever before. COlServa-
tive BANKERS are encouraging the
growers to dispose of their crop grad
ually until their debts are paid mas
much as such 4 procedure helps the
credit of the farmer and that Of the
retail merchant n assists the mer-
chants inc the banks III putting ac-
counts iT.to shape for an extension al
credit the next season. After obliga-
tons ave been l~iouidated. there IS al
inclination to aid the farmers in hold
ing, AND one Mississippi bank has
even offered the farmers Of the neigh
bOThood hat sort of assistance, while
some in Texas have been known &c
XII la ''iI@ oSiAo - oA'N ~ l1 ~
care Of the crop, although in portions
of that State. as in other parts of the
South, the farmers have come into
such good financial conditions thai
they are not calling upon the banks
to help them. For instance. in por-
tons of North Carolina and South
Carolina the farmers were able this
year to pay their debts from their
tobacco and whcat croHs, and while
there is very little holding back OF
cotton it is expected that should the
prices decline, there will be consid-
cradle holding back. So, in Georgia,
most Of the "distress" cotton has al
ready been marketed and the balance
of the crop is claimed to be in tn,
hands of strong people in a position to
hold until prices suit them.
In parts Of Texas there has beer
some .c.ogging OF trade because Of the
holding q cotton, but the banks have
begun to bring pressure TO bear and
it is thought that by the middle o!
next north the greater porlon Of the
crop in the State will have been sold
This will materially improve conditions
Trere is sona resistance TO the devel-
nnment OF the warehouse sy"ter- a.