The Washington herald., 1914-08-06
GOOD DOMESTIC
CONDITIONS EXIST
United States in Splendid Con-
dition to Withstand Strain
of European War.
BANKS STRONG POSITION
Farmers Able to Hold Cotton-An-
alysis of Southern Railway Report.
Maryland Delaware Merger.

Washington banks have not felt I
necessary to ask for emergency cur
rency." and probably they will not d,
SO. Crop moving funds may be uset
later by banks with Southern conditions
but the financial situation here is II
such excellent shape that in all proba
bility government assistance will be un
necessary for even the most ordinary
conditions.
Under the new law a total of 500, 900.
900 will be available for New York banks
Collateral on which the emergency cur.
rency Is loaned Is scrutinIzed first Al
the New York clearinghouse by a spe.
cial committee and then ratified by the
government officials at the subtreasury,
Banks outside OF the Clearinghouse will
have 10 make application through Wash
inlgton.
The emergency currency Is different IN
no way from the ordinary national bank
notes. -
A prominent banker. in discussing the
foreign situation, said that the United
States today occupies a unique position
In the eyes OF the world. The banks Of
the United States today are in a stronger
position than ever before. the largest
crops on record are being harvested, and
the situation as whole in this country
Is on a sounder basis than at any time
In the past
He pointed out that in his opinion the
United States will be recognized as the
foremost nation OF the world when hos
tilities have subsidized on the other side
II will be recognized that American Sc
curfties are safer investments than any
In the world, and that confidence will
be displayed b. all nations In the ability
OF the United States to handle satisfac-
torily and without aid practically any
unfavorable situation that may arise In
business or finance.
The quick and concerted action that
has been taken by American bankers
who have co-operated with the govern
ment has already afforded relief to a
situation which otherwise might have
proven disastrous. No other nation Of
the world would have been able to have
accomplished results similar to those al
ready achieved on this side Of the At
lantic- The Authenticated measure
has afforded the country with sufficient
negotiable currency to meet any demands
that may be made. so that an expert |
ence similar TO that OF 1907 will not again |
recur. On the whole he said the situa-
" 3
Is sound, and difficulties that might have
been expected have been averted.
He added that the worst Is over, and |
that conditions will improve from now
On. With all the necessary precautions |
taken. 1t was pointed out that attention
would now be conferred toward providing
l means for shipping products to the
other side. Prominent bankers are now
negotiating with the government in the
and II Is hoped that within
week successful arrangements will be
made to accomplish the results desired.
The passage OF the bill in Washington
permitting foreign ships to come under
american register has removed the most
obstacle. and there now re-
mains to be accomplished provision OF
nough boats TO afford suficIent facfli-
les for the transatlantic shipments
hat will be made as soon as assurance
5 given that no interruption to the
ervice will be experienced.
At the moment no one Is willing to
enture an opinion as to the probable
lture course of cotton values. One
hing Is certain. viz. that crop develop
lents will have very little influence on
he price as long as war continues, The
xtent to which the foreign textile in ,
ustry will be affected, especially as re- :
ards the Lancashire mills which are !
OF in the zone of probable hostilities. :
a matter Of conjecture. However. II
conceded that the demand for our
otton abroad will be enormously curl !
dled- Even should the French and 9
nglish spindles be able to continue y
oerations. there are countless obstacles Q
the way of exporting cotton to thei c
points. :
" 10 q,
lips would be In a position to convoy h
erchsnt vessels and thus insure the q
'ntinuation OF commerce between the .
nited States, England, and France
Ut granting the establishment Of COM Il
ercial relations. the possibility of con- o
1ued prohibitive insurance and ex- i
Iange rates raises the question Of pro- a
ably exporting cotton. In view Of this
ntingency It is thought likely that AL
olonged war may bring about unpre- b.
dented conditions, with cotton selling a
r above its intrinsic value in England Z,
ID far below the cost OF production in D,
ed during the civil war, when cotton d
uld be purchased for almost nothing Il
the South and actually sold as high A
81 a pound IN the North. So
4 the United States had a merchant
arine to take advantage OF the trade
At could be opened up with nations ],
1t remain neutral, II Is admitted that e,
, outlook would be much brighter. II to
not doubted that the activity of AmerI- TO
n spindles will be stimulated, but while
mills may be called upon to I'LL the er
ps caused by the disrupting Of the in
strfes and decentralization OF the ex-l
It trade of the countries involved. II to
uld appear that they will be unable es
take full advantage Of such opportuni- te
$. of
he consensus OF opinion in the trade 20
present seems to be that the oniy Of
walton Of the producer lies in his ha
lily to hold back his crop until the
sis is passed.
he last government report officially e.
nts to total yield Of about 1850 600 "a
es exclusive Of linters.. Normally ST
tut three-Quarters Of the crop seeks
market before December /, but Il Is :
course. not probable that this ratio nc
apply to the movement this year re-
the event Of the continuation of the an
: for that length Of time. It would ,
obviously impossible to market sol ~,
Ell cotton under such circumstances, o.,
anything like a profit, IN view q iS'
oh It is fortunate that the South Is
a sound position and her farmers BA
orally well able to hold large part
their crops. B
l1s
18th June's gain of less than $4,000 in nj,