The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-09-19
TRYING
TO Hold COTTON
Every Effort Being Made to
Prevent Staples Falling
in Price.
RAILWAY HEAD HOPEFUL
Southern to Continue Improvements.
New York Bond Willing
to Pay Freight.


over the cotton crop has brought the
trade back to the stage OF barter. In
many places growers pay for goods with
cotton at the rate OF 10 cents a pound.
The market price for actual cash sales
at Savannah has been TO Sl-4 cents
recently. but in trade prices are always
somewhat more favorable. Some ferti-
lizer people are taking cotton at this
price in payment for advances which
they have made and for which they hold
notes maturing now and IN the near
future. In the more advanced States,
where intensive cultivation Is at its best.
as in South Carolina. the average use
OF fertilizer is probably a ton a bale.
At any rate. the South probably has
spent from SIS, 900 to 500 Oo0. 900 in fer
tillZers this year.
From present prospects a good deal of
this will be paid for directly with cotton
at $50 a bale, rather than with bank
checks. as usual.
Live stock traders also are taking cot
ton in exchange for cattle, horses, and
mules. An enterprislng trader in the
Piedmont district OF North Carolina &C
cepts cotton at $50 a bale. agreeing TO
hold II until 1915 and give the grower the
benefit OF any advance that may accrue
meanwhile. This shows the liberal spirit
which the merchants throughout the
South are manifesting In the effects to
enable cotton growers 10 settle their
debts. The method is being adopted with
the implement people. the automobile
people. and various others.
Buy-s-BaIe Movement.
A second great development is the
buy-a-bale movement The difference is
that, as distinguished from barter, this
brings in cash and cash is the most i'm
portant consideration now, especially in
the beginning OF the picking season. 1t
costs so a bale to pick, gin. and cover
cotton. Out OF this $50 a bale is the cost
Of picking. AS this is labor cost 1t will
have to be paid in cash or in orders on
the store. Here is where the rub comes.
People who have so to spare will do an
immense amount of good TO the cotton
communities as a whole by joining the
buy-a-bale movement at the beginning OF
the season. The high rates OF money
throughout the South are making II all
the more difficult TO command cash for
immediate needs. Any failure on this
score will result in much damage to the
quality OF the crops.
The greatest OF all movements. how
ever. is the back-tO-home movement of
cotton. Not one of ten bales brought
to the gin or to town Is getting into
market in some places. The sentiment is
against selling or trading at less than 10
cents, and growers are holding on with
grim determination. Last year there were
ginned to September . over 3.OO0.O00 bales
this year a much smaller total is ex-
pected, because growers are holding
much OF their picking in the seed, so as
TO avoid the expenses OF ginning which
are about $50 a bale, including covering
and ties. This phase of the situation
should not be overlooked as a market
factor which is bound to continue until
the situation clears up.
Financial Position Better.
According 10 reports from New York
applications for aIlotments OF the new
per cent revenue bonds and corporate
stock notes OF New York City are pour
ing into the Offices of the banking syndi-
cate and it is believed that the issue will
be very heavily oversubscribed. London
advices show an inclination 10 take them
in exchange for revenue warrants now
maturing and also to buy them for In
vestment. This tends TO contradict the
opinion that a flood of foreign Hquida-
ton would follow the reopening of the
New York Stock Exchange. and it i'm
proved sentiment in the financial district
Ii also caused a decline in sterling eN-
change 10 the lowest point since war
broke out, in spite OF a decrease in eX-.
port orders for grain and sharp drop in
price on the Chicago Board of Trade.
Canadian crop reports were decidedly
bullish The government estimate puts
that wheat crop at 16O,OOOOOO bushels as
compared with 232 10000 bushels last year.
and this gave special significance to the
decline in Chicago in the face Of such
news. Nothing from the seat of war
justifes hopes OF early peace, though
some traders talked that way.
Another highly favorable item of news !
was the weekly report OF the Bank OF
England. which disclosed a gain of So
COZ. 600 in gold and a proportion of re-
compared with 1881 per cent last week. |
The banks bullion holdings have been
exceeded only five times in its history, |
and 1t also succeeded in reducing its loan
accounts which proves that the joint
stock banks have regained courage and
are bearing their share of the burden Of
financing the Commerce of Great Britain.
1t is probable that the banks bullion
will make new high record
next week.
Southern to Continue Work.
President Fairfax Harrison. of the
Southern Railway, says contemplated i'm
provements in the Southern will not be
postponed.
The history OF the South, says he,
especially in the last forty years. has
been one of self-help. and the men who
have made the Industrial South OF today
are still in the saddle. 1 believe that
they are able to meet this crisis them
selves. Though we are undoubtedly enti-
tied to rely upon, and will have the CO.
operation, of all of the agencies OF gov
Federal or State, to which free
man should look in emergency, We are
being tempted by the suggestion that
government, Federal or State, should do
more for us than it has ever done for
any one before. We have become so used
10 the principle that government shall
interfere in business for the regulation Of
It that some OF us seem to have forgotten
that justihable regulation Is a treatment
of a disease and not habit Of nutrition.
THE Southern Railway Company and
The companies associated with II are 60
ing ahead with undiminished vigor to
accomplish the improvements for which
capital has been provided and Is in hand,
and which have been found to be neces-
sary to enable US to take care Of the
demands of the commerce Of the South
Is we have experienced them. to say
nothing Of the future. believe in the
South today and in the future OF the
South. Its record OF achievement in the
past Is an earnest Of whatNIt will &C.
,omplish in the future. Those who have
.hA Vision to see and IN behave In this |