The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-27
MILLIONS IN LOANS
ON SOUTH'S COTTON
Banks Of the Region to BE Sup
piled With Emergency
Currency.
PROBLEM OF PICKING NET
Ample Funds to Meet an Outlay
Calling for at Least
$1OO,OOO,OOO.

1t was the general view In cotton circles
yesterday that the Washington conference
over which Secretary McAdoo presided
had resulted In establishing a spirit OF
hope and self-reliance In regard to the
marketing and financing OF the cotton
crop. While II was made plain to South
ern delegates that the Government would
not concern itself with any such pater-
na.istic scheme as .valorizition Il was
equally apparent that Federal aid would
be extended In conservative and sub
stantial way and that IL the South would
help Itself the Government also would
help.
The biggest item now confronting the
Southern farmer Is paying for the pick
Inc OF the crop. and this will foot up to
total Of about silO,0oO,oOO figuring on
the basis of a crop of $1,000. 900 baks
good deal OF this has to be paid out
In cash, at least in such cases where ten
ant families do moi do the picking en-
tirely themselves. About 100000, 900 will
be supplied to Southern banks, and the
disposal of this sum will b. safeguArded
with provisions requiring II to be loaned
exclusively on cotton or such other COM
modites as may como within the terms of
the new banking law.
The fact was made clear by Secretary
McAdoo that commercial paper secured
by cotton warehouse receipts would be
put upon The same basis with bonds a.
securities against which emergency cur
rency under tho AldT1ch-vre~land act
could be issued.
II would not be surprising II a better
demand for cotton by American spinners
resulted from tho Impressions gained at
the Washington conferences. Southern
interests made It quite clear that they
intended to hold their cotton and would
not countenance sacrificing H. great
deal OF distressed cotton naturally would
have TO he sold and the amount will be
larger this year than ever before.
Some sales were reported yesterday
on the basis OF ~ cents for middllng
in the Texas interior. but 1t Is not
believed that middllng cotton could be
obtained at that price. II was explained
by some Texas shippers now here that
while the basis price might be - cents
this was quoted merely to furnish quota
tlons on which lower grades could be dis
posed Of. Augusta. Ga, yesterday quoted
mlddlng 81 cents which was decline
OF "a cent from the level OF the day
before Mlddling cotton IL being sold
all the way from cents to 9i3 cents
landed New England points.
Texas advices report rapid progress on
tho warehouse movement. TO the necessi-
ties OF which tho South seems al last TO
have become awakened. large number
OF these warehouses will consist merely
OF sheHcr sheds where tho cotton may be
stored In bales, which are set on end
The cotton. however win b. well pro-
tcctcd from the clements and most OF these
sheds will be surrounded by wire fences
with a Waterman In charge.
The Texas Legislature is taking steps
TO have licenses issued for such ware
houses and to have bonds given where
licenses are issued This is for the pur-
pose 81 safegus rdins the cotton stored
there and TO provide against the owner
OF cotton being compelled to receive back
any cotton except that which he orr
gnally stored In the warehouse
crop reports generally are very favor
able and estimates from Texas put the
crop Of that state around 100000 bales.
There seems every warrant for believing
that the present crop will prove TO be
at least 100000 bales. and probably
more. Habersham King In his report for
the first three weeks in August says that
the month thus far has been phenomenally
favorable over the entire belt. and the
DEVELOPMENTS OF the past week are con-
strued as favorable over 90 per cont.
OF thu belt and partly unfavoraole to
10 per cont. on account OF the Interrupt
ton to picking resulting from the recent
rains.