The Washington times., 1914-10-27
THE COTTON OUTLOOK.

cotton was worth around IL cents
the pound. They are going to open
with cotton worth somewhere
around 8 cents; quite likely less than
that. There must, consequently, be
adjustments of transactions that
were pending at the time when busi-
ness was suspended. 1t is as if the
placid flow of the cotton trade had
come to a Niagara, and had to go
over the falls. Boating was good
above the falls, and it is good again
below; but getting over, and on an
even keel on the lower level, is some
thing of a problem.
1t is to be said at this time that
pretty nearly everybody concerned
about the cotton situation has acted
well. True, there have been some
legislative proposals of an extreme
and socialistic sort, the adoption of
which would have made matters
worse rather than better. But these
proposals have not been adopted,
and they never had a serious chance
to be adopted; which is highly cred
liable to the aggregated common
sense OF Congress. The discussion
of them did serve to compel atten-
tion to the bigness and gravity of
the condition. Doubtless, indeed, the
demand for extreme measures did
more than little to convince the
fnanciers of Great Britain that
some worthwhile concessions ought
to be made to American cotton, lest
the States be tempted to undertake
financial measures that would react
dangerously upon the worlds deli
cate business adjustments.
Cotton was placed by internation-
al agreement of the London Con-
vention, among those staples that
should not at any time be made con-
traband of war; but the British gov
ernment declined to subscribe to
that agreement. Without British in
dorsement, of course, it would have
little weight so long as Britain
should continue the great sea pow
er. Circumstances have brought
England to see that her interest lies
in joining the rest of the powers in
that agreement, and so it is an
nounced that cotton will be permit
ted free shipment, even to enemy
countries.
In taking this position, needless
to say, England has not been actu-
ated by motives of altruism. 1t isn't
because Downing street feels a deep
concern in behalf of the American
cotton growers; but Downing street
knows that American cotton consti-
tutes the cornerstone Of American
foreign trade, and that American &C
counts current in London will not be
paid easily and cheerfully until cot
ton is moving again. Better, then,
for London to open the way for a
free movement of cotton, because
that will loosen up the payments
that London hopes to get from this
side.
Moreover, England will not be par
ticularly injured by reason of cotton
going freely to the German manu-
facturers. Letting raw cotton into
Germany is a very different matter
from letting manufactured cotton
out of Germany. Britain by no
means binds herself to that. About
all the German manufacturers will
be able to do will be to supply the
home demands of their country dur
ing the war. Their foreign trade is
hopelessly gone, save that limited
part which lies in Austria Hungary
and the southeast of Europe. Else
where, the German foreign trade is
cut off as completely as if it had
never existed; and it is this trade
that British manufacturers want to
annex. In their effort to annex it.
they will be aided by the German
absorption Of considerable guam
tity Of raw cotton, for that will re-
duce the surplus that must be cared
for, and consequently shake prices