Omaha daily bee., 1910-10-09
FOREIGN BANKS AND COTTON
Attempts 20 Make Americans Assume
All Risks-URited States Can
Finance Crop.
~ PRESTON II AnAMs


NEW YORK, Oct. s-(Special to The
See. lone OF the most interesting features
OF the commercial situation today is the
controversy over the endorsement of cotton
bills of lading and there are those who, Of
the opinion that before II is over, there will
be some changes which will have far-reach-
The foreign banker has played a pretty
prominent part In the handling of the cot
ton crop heretofore and has made very
losses for which he himself has been largely
responaebl because OF loose business meth
DDS he has tried TO make the American
banker assume all the risk OF loss.
Nobody has even accused the New York
banking fraternity of being "come-ons"
when the chase Of the nirnble dollar is con-
cerned, so they have been quietly getting
things In shape to finance the cotton crop
without the aid Of the foreigners, assuming
the risk all right but incidentally the profits
The foreigner must have American cot
ton SO large percentage Of English work
me men depend directly and indirectly upon
the product Of our southern fields that-al-
though cotton is not fool-England would
starve II its supply OF American cotton were
cut off. The continent OF Europe takes
more American cotton than does Great Bril-
tain,
That the United States is able to finance
It's own cotton crop there is no doubt. New
York banks have, In the past, been repre-
sented as being antagonistic to cotton. Such
a claim can no longer be made. There is
a small group OF banks In New York very
much interested in cotton today. A few
years ago they were very little Interested
These banks are stronger than all the banks
or Liverpool and have probably resources
as great as all the foreign banks that have
for years been interested in cotton. There
viii be no trouble In financing all the cot
ton raised in the south without the aid of
foreign money. The man with the bale on
the street will find the money in the local
bank to buy It, The question of the financ-
ing OF cotton merchants Is another matter
II foreign banks wish to withdraw from
cotton 1t will effect individuals and inter
ests, out ii viii not hurt the farmer. Tha
person injured most will be the foreign con-
sumner,
The American money that will go to H.
nance the crop, II the foreigner Is through
with the business, may not be as cheap as
foreign money-certainly it's sympathy will
not be with the bear side Of the market 70
the extent that OF foreign money Island
cotton.
People who have been complaining of the
high cost Of living as reflected in wheat,
soon find a new cause for complaint. Shop
keepers have begun to issue warnings that
coffee prices are destined TO rise.
The advances in price which are likely
TO take pluce soon Will not be brought
about by any trust, nor will they be con-
fined solely to the United States.
They will be the result entirely of condi-
lions In the worlds coffee market which
in the last few months have developed In
decidedly interesting manner. Through
a combination Of circumstances raw coffee
prices are now higher than at any time In
many years; here In New York the Coffee
exchange spot" price is IL cents a pound
for Rio coffee, unroasted' as contrasted
with 9 cents a month ago, s cents three
months ago, 7 cents a year ago, and 6N
cents eighteen months ago. The abrupt
advance in the last month has not yet led
to a corresponding rise in the prices OF
roasted coffee by retailers. and, for the
most part roasters have not yet advanced
their prices TO correspond with the higher
cost TO them OF the raw berry, but II IS
clear that the roasters have had their
profits cut down sharply because OF the
high price level which coffee has attained
and some OF those who did not lay in a
sufficient supply when prices were lower
have begun to protest that the coffee mar
ket Is "cornered"
That New York warehouses contain large
supplies OF unroasted berries is admitted
Altogether there are some 2 800 900 bags
stored here, but some OF these, l. 400 900
bags, are hypothecated under the Brazilian
''valorization loan" OF two years ago, and
cannot under any circumstances be sold
now, This leaves an available supply on
hand OF 10000 bags TO care for the COM
1910 and this supply, even allowing for I'm
crease through shipment now under way
from Brazil, Is far below normal A year
ago the supply at this time was double
800 900 bags.
These figures apply only to New York
but they reflect conditions in ali OF the
worlds markets. Supplies OF the raw
berry are unusually low, and as roasting
| demands exceed supplies, there Is a con-
slant dimlnuuon IN the available surplus.
Were the coffee that Is hypothetical
against the Brazilian loan to be sold II
| unquestionable would right matters In
Europe and the United States there are
g. 900 bags held back from market under
the provisions OF the loan. That amount
Is sufficient, roughly figured, 70 supply
the world for nearly half a year. But only
certain amounts OF this 'valorlzed" coffee
can be sold yearly, the terms OF the loan
against whom the coffee Is held being Inn
perative. The 1910 supply has already gone
into consumption, and because No more OF
II can be brought forward under the
provisions OF the loan until next year n
Is easy to see why some coffee people
have been ready 10 say that there is a
corner"
The trustees Of this coffee win sell TOO.-