The Birmingham age-herald., 1914-09-02
Holland Says That Action Was Just As Important to American Business As to Farmers Themselves.
By HOLLAND


 New York, September Specially American bankers are making will be suf- ficient to protect the cotton planters Of the south. For it is deemed quite as in- portant to general American commercial interests that this greatest of American harvests in money value, with the possible exception of corn. should be protected financially it is of importance to the planters themselves. A normal cotton crop, including by-products, has been es- timated for several years to be of the money value of considerably over Sl,ooo.- 000,0o0. Our exports of raw cotton have several times in recent years represent ed in money the aggregate trade balance in favor of the United States. Or in other words, our other international com merce has about balanced-the money value of exports beiag equal, substantial y, to the money value of imports. But our sales of cotton to foreign nations have averaged about $500 ooo.c0o year. Three years ago one of the leading inter- national bankers at this time of the year said that exports of raw cotton would give a visible trade balance of be- tween $4O0,00o,000 and $500, ,00o000, thereby favorably influencing the entire volume of our foreign trade. The prediction was an accurate one.
 Sooner or later unless the European war results in absolute cataclysm, the Lancaster district of England and cotton manufacturers in France will make heavy demands for American cotton. But until 1t becomes practicable to export cotton 1t must be warehoused.
 Fortunately, American bankers in CO., operation with the government at Wash ington, will be able to secure ample funds With which to finance the warehoused cotton. In this city it has been the es- timate for several days that probably as much as S500. 00000O of currency can be wisely utilized in protecting the cotton financially. There are also intimations that 1t was in part due to the belief that the American banks would deem it duty to protect this cotton so that the south ern planters should not meet with heavy losses that Secretary McAdoo recommend ed that the maximum limit of $500 000, 900 for issues of additional currency under the Aldrich-Vreeland act be increased so that it would be lawful for him to issue If in his judgment such action were ex- pedient, not less than s1 900, ,000, 900.
 An Expert Opinion
 No one is better qualified to speak of the needs of the cotton planters than is W. F. G. Harding, who. fortunately is a mem- per of the federal reserve board As president of one of the leading banks Of the south, the First National of Rir- mlngham, MT. Harding for years has been brought into intimate financial and bank Ing associations with the cotton planting interests of the south. Mir. Harding who was In New York for several days after the stock exchange was closed, said in- formally to his friends that there would probably be between 13000,000 and 14.000 GOO bales of cotton harvested in the south this year. Ordinarily no small part of this cotton would be speedily upon the ocean. Snd before the end of the year much Of 1t would be in the hands of manufac turers@of Great Britain and France.
 The hope has been very strong that within 50 days ocean commerce would be protected so that it would be pos- s1bie Tor American exports to be car rled to the markets of Great Britain and possibly France But until the ocean has been policed so that our com merce will be protected, much the greater part of it necessarily being carried in ships flying English flags. the cotton planters must store their cotton in the warehouses.
 Cotton Warehouses
 Early in the spring discussion began respecting the commercial practicabiI-