The Sentinel=record., 1914-08-08

Washington, Aug. I'm an address
to the cotton growers and people of
the cotton growing states made pub.
tic tonight the congressional c.51nmlt-
tee which volunteered several days
ago to seek measures which would
prevent serious consequences to the
south because of the European war,
declared:
Our message to you is stand firm.
Sell cotton only as last necessity"
Members of the committee headed
by Senator Hoke Smith of Georgia.
after a careful investigation of con
ditions up to the present, gave it rs
their mature judgment that the least
possible cotton should be put upon
the market during the next sixty days,
asserting that the agencies of the fed.
eral government, both executive and
legislative, were doing all possible to
relieve the strain of the situation
caused by the lack of transportation
facilities and the danger facing no
market abroad. They called for I'M
selfish cooperation among the farm
ers, merchants and bankers of the
south for the common good and de-
clare:
1T should be understood that we
are not in the midst of a panic, nor
is financial panic possible under
our new banking and currency law;
and it is not necessary for us to
throw our cotton upon the market at
prices less than its real vaiue."
The statement of the congressional
committee follow
I'VE recognize the fact that cot
ton is the money crop of the south
ern people and any situation which
vitality affects it's value must be felt
by ali lines of commercial and in
dustrial activities
While the condition of war in Eu-
rope gives rise to situation which
is serious, we believe that it can he
greatly overcome if all agencies, Ia
tional state and local, promptly and
vigorously respond to their respective
duties
Your president, the several exceed
tive branches of the government. and
your senators and representatives are
eXerting every effort to devise means
by which the cotton crop may be mar
keted at a price warranted by nomi-
mai law of supply and demand and not
by a condition caused by the Euro
pean war.
THE important problems involved
in this situation are:
First, transportation. 1t is essen
tial that lint cotton and cotton man
ufactured goods should reach foreign
markets where they may be consum-
ed. We are confident congress viii
pass within a few days an amend
ment to our shipping laws which will
greatly facilitate transportation. We
have no doubt transportation faciii-
ties viii be available for cotton and
cotton manufactured goods within a
very short time.
Second, consumption of cotton. The
European war must necessarily re-
duce temporarily demand and cons
sumption. The state department has
cabled our consols abroad for detailed
information.
From the information we have re-
ceived we are confident the con-
sumption, domestic and foreign, win
be much larger than is generally sup
posed The mills of the United States
and Canada viii, consume approxi-
mately half of our production and the
demand for American cotton by Great
Britain and the Orient will not be
ereatly reduced Great Britain CON
sumes nearly half of our exported
cotton. Eleven million bales should
be absorbed by the trade, even under
the most aggravated conditions.
These facts should be most reas-
surfing and consequently dispel the
idea that the foreign trade in cotton
will be wiped out.
Third, money to market the crop
and care for the surplus. Already the
secretary of the treasury has arrang-
ed a deposit of $2o,O00,000 in south
ern banks. He desires this used and
| especially to handle the cotton crop.
During the present week congress has
passed an emergency bill under the
terms of which not less than $780,
100000 of additional currency viii be
available to meet every emergency
which may arise.
''The federal reserve banks soon 10
organize will accept notes secured by
agricultural products. This insure 5
ample money for moving the crop, 10
care for such distress cotton as may
come upon the market and also 10
keep in operation the factories for
the consumption of the crop. The fl
nancial situation of The country couTi
not be better when 1t is understood
that the treasury department stands
RANDY N Iand sc great nou,ar 70 mo