The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1914-10-02

trIa=E1unGary.s have been removed.
II Foreign exchange conditions have
Improved by the formation OF the gold
i fund as approved by the secretary Of
4 the treasury and the federal reserve
/ board, and as our exports OF grain and
cotton increase Ia volume, as they
must do IN the very near future, nor
mail quotations for sterling bills VII
again prevaiI
| Cotton GOODS are the cheapest OF
all textile6 and should replace during
nard ZINES finer and more expensive
fabfics. Cotton can be used IN com
s1derablei quantities as a substitute for
Jute and other materials N the manu-
in England are reported as running
double time on khaki for army uni
forms, and there 10 no reason to doubt
that the trade Will ultimately absorb
the worlds production. Cotton manu-
facturers' must solve the problems
which have grown out OF the closing
of the cotton exchanges Of this coun-
try. whereby they have been deprived
OF q standardized price and Of their
power to hedge on contracts, and
must overcome the further dfMcH1ty,
occasioned by loss of confidence and
curtailMent Of credits, of financing
purchases.
Compared with the prices that have
obtained for the last three or four
<casons, present quotations seem very
low, but 1t is doubtful If large stocks
~ cotton could be secured at prevail
ing prices, as an active buying move
ment would undoubtedly enhance val
ues.
Production 100000 Bales.
cit is argued that the southern
states have produced a cotton crop,
which added to that grown in other
countries, is under present conditions
about 5000, 900 bales greater than is
required for the worlds needs. and the
fear that this is true is causing much
apprehension in the South. There
have been predictions Of general bank
ruptey and ruin, and yet regardless
! of all the pessimistic talk and In spite
of increasing receipts, the price has
advanced during the last three weeks
one and ons-hah to two cents per
pound; and if is we'll worth while for
cotton manufacturers to consider these
facts, to analyse them carefully, and
to anticipate the probable effects.
.tThe cause is not hard to find. For
many years the South has been gam
ing in wealth and it's farmers have
been growing more Independent, better
methods OF agriculture have been IN
troduced, marked progress has been
made in the diversif1cation OF crops,
large plantations have been subdtvtd-
ed into small farms, and in many
cases the tenant farmer has become
his own landlord. There is in every
| normal year certain proportion OF
/ the crop which come in early and
which seeks the market at any level
\ that it can and, which is commonly
called distressed Gotten This is the
cotton that is now. being sold at seven
and half to eight cents, and it would
be well for manufacturers to bear IN
mind that at these figures much cot
ton will be withheld from the market
for months to come.
at is true that there Is great
amount of indebtedness which can be
liquidated only by the sale OF cotton.
but In view of the increased cost OF
production in recent years, sales at
present prices would be in many cases
\ inadequate for the discharge OF thesa
obligations, so that even II the pro-
Queer, being unable to sell his cotton
for enough to pay his indebtedness,
should turn it over to his creditor,
many of these creditors would be in
a position to hold, and much Of the
cotton Will be withheld from the act
uaI market.
Financed at Beginning.
"The financing of the present crop
began with its planting last March or
April. 1t is the one crop In the South
on which loans are always freely made
until it is harvested, and lneVstlga-
tons recently made by chambers OF
co,,,T,arce in southern states show
/ that advances on cotton in different
4 states, made from the time of the
/ nianting of the crop until it left the
gins. range from $50 to $44 per bale.
1.-THE last four crops, including seed,
have brought the people OF the south
ern states gross average OF nearly
one thousand million dollars per year,
of which amount about one-haH mas
come from domestic and Canadian
mills, and the remainder represents
the value of exports to foreign @oun-
tries.
.fBy the sale Of this crop the South
has been enabled not only to discharge
| it's obligations promptly every fair,
hut has added half billion dollars
each wear to the national trade bal
ance. Cotton production is stimulated
by high prices, and conversely Is
Icurtailed when prices fall below the
! cost of production. This mas peeh
/ ma rticularly true in those years when
pr .i were low throughout the sea-
1 son and continued low during plant
4 ing time in the early spring. Never
Rave the evils Of over=production been
so universally appreciated IA the
i South, a. now. nor never before has
there been such grim detefminati on to
hold cotton and to radically cuftain
acreage. Public sentiment IN many
EsattEefn states has been 50. aroused
THAT there is now d general ciamor