The Washington herald., 1914-09-25
RATES
Main PROBLEM
Situation Promises to Improve
When Gold Deposits May
Be Made In Canada.
COST OF COTTON CLOTH
Ten-cent Cotton Leaves Manufacturers
with No Pro6t-B. & o. Urges
Increased Acreage.

High rates for sterling exchange pay
able in London are imposing an unbear-
able burden on this country which the
public does not fully realize. Merchants
with bills falling due for goods imported,
corporations with interest on bonds and
dividends on stocks, municipalities, the
Federal Treasury, and even the Red
Cross Society, are taxed nearly per
cent on all moneys ct present because
the machinery of foreign exchange mar
kets has been put out OF order by the
war.
The balances we owe abroad are no
larger than usual. and their settlement
would cause no inconvenience were con-
ditions normal: but European credits are
curtailed and money cannot be borrowed
in London against which to draw bills
Of exchange. We must maintain our
credit and meet our obligations. and our
importers and manufacturers must be
relieved from the payment Of extrava-
CANT premiums on every dollar they have
to pay for goods or supplies bought
abroad.
To remedy this difficulty we must Gre
ate a credit balance in London against
which bills can be drawn at once, and
the plan adopted is to deposit gold with
the Dominion treasurer at Ottawa, Can
ada, to the credit of the Bank of Eng
land, against which that bank will pay
out cash in London. The Federal Re
serve Board has approved the plan, and
has asked the banks in all reserve cities
in the United States to subscribe to the
geld fund Of SlO0O 000. The New York
Clearing House institutions will subscribe
S4j. .OoO000. and the Chicago banks have
promised $4,000 OoO; so the plan seems TO
be a success. Only one-fourth of the
amount subscribed will be called at pres
ent.
Cost of Cotton Cloth.
The South is enthusiastic over the prog
ress of movement to hold cotton for high
er prices. and predictions OF l0-cent and
12-cent cotton are being made. The un-
settling effect of the advance is the raw
material on the goods market and the mill
situation is overlooked. The significance
of the Southern movement reveals itself
in the following exchange of kilograms
between A. C. Duncan. president OF Ma
tional Association Of Cotton Manufactur-
ers. and W. D. Nesbit, secretary Of one
of the large "Buy-a- Bale-Of-COtton''
clubs:
Albert Green Duncan:
This organization is endeavoring to Sc
cure 10 cents per pound for that part OF
this years cotton crop which can be
consumed by the spindles possible of oper-
alton and to carry the balance until 1916.
ing this to be cost to produce, and be-
lieving our mills can find a market at 4
profit based on lO-Cent cotton for more
goods than they can produce. II this
price will liquidate our debts and give
a basis for profitable manufacture by
our mills no efforts to secure it should
be spared. Please wire US mill out
look and your opinion.
w. D. Nesbit, secretary Jefferson
County -a-Bale-of-Cot Club"
Boston, Mass, Sept. - 1874
Wv. D. Nesbit. Birmingham, Ala:
Rapid advance price Of spot cotton
has stopped buying movement for goods
started last week. Cotton cloth cannot
be sold at a profit today based on 10
cent cotton.
ALBERT GREEN DUNCAN"
Chance for Farmers.
J. H. Stewart. agricultural agent OF the
Baltimore and Ohio Railroad, views the
situation as favorable if the American
farmers will seize the opportunity for
H.