The chronicle=news., 1914-10-01

ing demand for raw cotton by the
mills, with a marked increase in the
demand for export.
"Of course he continued. "as
long as present conditions continue
the demand from Germany, Austria
Hungary. Belgium and France. will
be greatly curtailed, but there
should be good demand from Great
Britain. Spain, Italy and from Rus
sia. which can obtain its supplies in
dependently of routings through the
Baltic Sea. Ship room is now avail
able. prompt action by Congress has
enabled our government to provide
marine insurance. the Bank of En-
gland is again discounting bills and
practically all the obstacles In the
way of exports to all foreign coun-
tries, except Germany and Austria
Hungary. have been removed. For
eign exchange conditions have with
in the last few days been vastly i'm
proved by the formation of the gold
fund as approved by the Secretary Of
the Treasury and the Federal Re-
serve Board. and as our exports OF
grain and cotton increase in volume,
as they must do in the very near
future. normal quotations for ster-
ling bills will again prevail.
Cotton goods are the cheapest of
all tex lies and should replace dur
ing hard times finer and more ex-
pensive fabrics. Cotton can be
used in considerable quantities as a
substitute for jute and other ma
terials in the manufacture of bur-
laps and sacks, mills in England are
reported as running double time on
khaki for army uniforms. and there
is no reason to doubt that the trade
will ultimately absorb the worlds
production. Cotton manufacturers
must solve the problems which have
grown out of the closing of the cot
ton exchanges of this country,
whereby they have been deprived of
n standardized price and of their
power to hedge on contracts, and
must overcome the further difficulty,
occasioned by loss of confidence and
curtailment of credits, of financing
purchases.
Compared with the prices that
have been obtained for the past
three or four seasons, present quota
tions seem very low, but it is doubt
secured at prevailing prices. as an
active buying movement would un-
doubtedly enhance values.
''Tt is argued that the Southern
states have produced cotton crop,
which added to that grown in other
countries, is under present cOndi-
tions about 100000 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 bankruptcy and ruin. and
yet regardless of all the pessimistic
talk and in spite of increasing re-
ceipts, the price has advanced during
the last three weeks one and one
half to two cents per pound; and it
is well worth while for cotton manu-
facturers to consider these facts, to
analyZe them carefully, and to an
ticipate the probable effects.
.'The cause is not hard to find.
For many years the South has been
gaining in wealth and its farmers
have been growing more inde1end-
ent, better methods of agriculture
have been introduced, marked pro-
gress has been made in the diversi-
fication of crops, large plantations
have been subdivided 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 1t can find.
which is commonly called distressed