The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-08-25

Southern People Must Watch
and Provide for Withdrawal
of Surplus Cotton and To-
bacco From Market Where
if Is Giutted; Fine 0ppertu-
mites are Coming
wv. +. YELv ERTON.)


Washington. d. c.. Aug. 23.-Co-
anoration. resourcefulness, initiative
8, meeting new conditions, a~fertness
and courage are necessary II people
20 the United States are to meet the
nresert cotton and obaccO situation
md at the same time rea the benefits
accr,ing from the war in increased
trade with other countries, according
N Senator Simmons, who has Lax
many conferences about the erect or
tho var. Senator Simmons has talked
with a great many people from the
c.ate and conferred with nan legis-
ators here.
Senator Simmons Conclusion.
The conclusions which Senator SIM
mons has reached in his study Of the
situation are given in the
statement: =,
the Senator said, differentiated itself
in an important particular from that
Of our food products and many lines
of manufactured goods. This differ
entistion grows put of h fact that
while there will be an increased for
elgn demand as a result OF the war
for most Of our products, both. Of the
farm and the factory n the mines.
at possibly higher prices, there WIFI
be a dimunition of h foreign demand
for both our raw cotton and our
manufactured tobacco. While 1t is
not expected that the cotton and to-
baec0 factories of Europe will be al
together shut down their activities
will be more or less curtaiied, thus
cutting off a demand for h $4,000
600 worth of tobacco and 5000, 000
bales OF cotton which we have here
tofore sold abroad, mostly to Europe.
While there will be likely be but lit
lie interference with the operations
Of the cotton factories of countries
like Italy and probably Great Britain,
there will be quite a falling off in the
output of the French and German
factories.
Provide For Withdrawal.
This situation makes it prudent
and wise If the price OF cotton and
tobacco is to be maintained, to pro-
vide for the withdrawal from the mar.
ket, pending the var of a reasonable
amount Of this years cotton and to
baccg crops.
With respect TO other farm, mine
and manufactured products the finan-
eial problem is chiefly one Of supply.
Ing adequate mone to meet the new
situation until the channels of cea
traffic are open and shipping facili
lies are provided.
To meet this double situation botl
.he Administration and Congress
nave been exceedingly active. Thi
Vreeiand-Aldrich act has been g,
amended that tn country at larg,
can secure through the national bank
a new issue of notes. should the.
take out circulation to the full
amount authorized. to the amount o
ABOUT Sl.750, 000, 900. OF this tn,
South can get s15S, 00e, 900. Thi
money is immediately available to ma
uohal banks INC can be had upol
not only government bonds, but State
county and municipal bonds, con
h"erclitl PAPER and other approved Sc
'urltles tn the extent of 125 per cen
VI their capital and surplus, less note
~ ISSUE already outstanding. Th
,uil amount of this possible issue ca,
ne mad upon bonds and other secur
ny out oniy 80 per cent Of it can b
..u upon commercial paper. B
commercial paper is meant 'tw
."ihe paper. If the situation seem
- require it, the per cent Of issu
eu upon commercial paper ca
anu VIII be increased. The note Of
"N secured by a warehouse depOs
VI cotton or tobacco, will, he was as
mmLled' be held by the Secretary of tn
ae1Sery to be a security and nc
'"tcrcial paper so hat these note
500 'e used as a basis of circulate
;SS' as and to the same extent and t
amount of issue as State. count
or municipal bonds.
..r, TWO Kinds Of Currency.
W. currency provided for in til
n1tdnd-Aldrieh act is bank nots
cnr"Veu by individual banks while til
orr nncy provided for under the Fec
not reserve system is governmel
FsI 'oaned to member banks by tf
EMU reserve Banks. This Iatt,
,his rlcy VIII not be available unit
orr Nv system is fully organized
nleta .a'lon which will not be con
Thsro'or several months to com
banL. no difficulty about Sta
setting the same accommod,