Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-10-01
MANUFACTURERS
Of COTTON HEAR
TALK BY HARDING
Member of Federal Reserve
Board Delivers Able Adj
dress to Mill Men of New
England Predicts Prosperity
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isv MORNING JOURNAL srGctsL tKtsso wiRsi
lenox. Mass Sept 30.-Before the
National Association of Cotton Manu-
facturcrs here tonight W + q. Hard
ing. member of the federal reserve
hoard and student of present economic
conditions in the south predicted that
within the next few months there VIII
be a steadily increasing demand for
cotton goods by consumers and a con-
sequent demand for raw cotton by the
mills and TOR export. Mr.. Harding
said.
Il shall not undertake in the pres
ence of the foremost experts to haz-
ard any guesses as to the probable
consumption of cotton within the
next few months. but / will be bold
enough to predict that AS the season
progresses there will be "A steadily In
creasing demand for cotton goods by
the consumers with a corresponding
demand for raw cotton by the mills.
with marked increase in the de-
mand for export.
"Of course" he continued. las long
as present conditions continue the de-
mand from Germany. Austria Hun
gary. Belgium and France, will be
greatly curtailed, hut there should he
good demand from Great Britain,
spain. Italy and from Russia. which
can obtain It's supplies Independently
of routings through the Baltic sea.
ship room is now available. prompt
action by congress has enabled our
government TO provide marine insur-
ance. the Bank of England is again
discountng bills and practically all the
..ia In of tg all
foreign countries except Germany and
Austria Hungary, have been removed.
Foreign exchange conditions have
within the last few days been vastly
improved by the formation of the gold
fund as approved by the. secretary of
the treasury and the federal reserve
board, and as our exports of grain
and cotton Increase in volume, as they
must do in the very near future, nor
mai quotations for sterling bills Will
again prevail.
Cheapest of Textiles.
Cotton goods are the cheapest OF
all textiles and should replace during
hard times finer and more expensive
fabrics. Cotton can be used in con
siderable quantities as a substitute for
iutc and other materials in the man
ufacture Of burlaps and sacks, mills In
England are reported as running dOu-
BILE time on Khaki for army uniforms,
and there is no reason to doubt that
the trade will ultimately absorb the
worlds production. Cotton manufac-
turers must solve the problems which
have grown out of the closing of the
cotton exchanges of this country
whereby they have been deprived of
a standardized price and of their pow
or "a haIp4 and
ercome the further difficulty. occa-
stoned by loss of confidence and cur
tailment of credits. of financing pur-
chases. Compared with the prices
that have obtained for the past three
or four seasons. present quotations
seem very low. but it Is doubtful If
large stocks Of cotton could be Sc
cured at prevailing prices as an active
buying movement would undoubtedly
enhance values.
III is argued that the southern
states have produced a cotton crop,
which added to that grown in other
countries is under present conditions
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 gem
eral bankruptcy and ruin. and yet re-
gardless of all the pessimistic talk and
in spite of increasing receipts. the
price has advanced during the last
three weeks one and one half to two
cents per pound and il is well worth
while for cotton manufacturers TO
consider these facts. to analyze them
carefully, and to anticipate the proba-
Bile effects.
South Gaining in Wealth.
The cause is not hard to find For
many years the south has been gain
ing In wealth and its farmers have
been growing more Independent bet
ter methods of agriculture have been
introduced. marked progress has been
made in the dNersification 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 q certain proportion of the crop
which comes in early and which seeks
the market at any level that it can
find, which is commonly called dis
tressed cotton This is the cotton that
is now being sold at seven and a half
10 eight cents, and it would be well for
manufacturers to bear in mind that at
these figures much cotton will be with
IVA Aibih tH' iudihft lol libllAHS ~
come.
1T is true that there is great
amount of Indebtedness which can he
liquidated only by the sale of cotton.
but i'm view of the increased cost Of
production in recent years, sales at
present prices would be in many cases
inadequate for the discharge of these
obligations, so that even if the pro-
Queer. being unable to sell his cotton
for enough to pay his Indebtedness,
should turn il over TO his creditor,
many OF these creditors would be in
a position 60 hold, and much Of the
cotton will be withheld from the ae-
tual market.
Loans Freely Madc.b
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 free
~ made until it is harvested and in
vestigations recently made by cham
bers of commerce in southern states
show that advances on cotton in diff
ferent states made from the time of
the planting of the crOp until il left