The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-16
Spinners Directing to Offer of
Government Aid to the
Farmer.
NINE CENTS NOT RUINOUS
Price Went to 81 "a Three
Years Ago and No Disaster
Followed.

Although members or the Cotton EN-
change have been busily engaged In
cleaning up tho local contract situation,
the various efforts which the South is
making to prevent tho sacrifice OF the
crop is engaging considerable attention
Thus far the plans that have been pro-
posed for financing the marketing OF tho
crop have not struck local cotton men
As entirely feasible.
At the meeting OF the Southern Cotton
Congress In Washington plan was rec
commended on Friday providing that the
farmer should be permitted to borrow
from Federal reserve banks ZIP TO No
venber / an amount equal to so per
cent OF the value Of his cotton as shown
ny the last 1--WE years average on one
half of his production. such loans. II
is suggested, are TO run for six months,
with the privilege OF siA months add
iional provided the cotton Is properly
stored and insured. II was resolved to
recommend this plan to the Federal Re
serve Board, and farmers will be ad-
vsed to sell half their crop and hold
the other hnlf. In this way II Is hoped
that a price OF 1874 cents a pound may
DO realized.
Judging from the talk heard In manu-
featuring circles. the spinners Of Amer
dca will protest strongly against the
Government giving the Southern planter
any concerted aid that will bring about
minimum price OF 12h cents a
pound. Tho manufacturer takes the view
that In these abnormal times the cotton
planter should share tho burden with
tho rest OF the community. II is pointed
out that only three years ago cotton
went TO the basis OF sa cents in the
South merely because the crop was "A
large one. The South WAS not impov-
erished by this decline and there was no
talk OF enlisting Government assistance.
With tho exception of the depression IN
the fall OF 1911 American spinners have
had to pay such high prices FOR cotton that
the margin OF profit has been dangerously
small, and In the last year most OF the
mills have lost money. II is a matter Of
common knowledge that cotton even now
is selling below 10 cents IN tho South. and
buyers of goods are insisting that they be
given goods on the basis Of current prices
Many mills have stocks which were made
up out OF cotton that cost them II cents
a pound, In order 10 get I'D OF these
Accommodations they must accept basis
of no more than I2 cents. Tor these .rea-
cons the cotton nanufact urers are dis
posed to protest against what they term
psternalistic aid for the cotton farmer
who has made about all the profit there
/
six years.
Some lines Of cotton goods offer a good
: chance Of proft for the manufacturer
These are chiefly fabrics that can be used
IN the bagging trade. The largest users
of burlaps are asking agents OF sheetinr
mills to submit samples OF forty incl
goods which they can make ranging from
two and onehalf yards TO four ard qua r
ter yards per pound up To the end OF tho
year II there Is no early improvement
/ on the situation on burlaps large CON
/ tracts for cotton goods Will be placed
/ The burlap trade has been demorallzeG
owing TO the failure OF Iute shipments &c
come through, and consumers have pur
/ chased at least $4,000 Yards OF cottor
goods In the past two weeks.
II II generally recognized that the
textile situation IN Lancashire ih de
! moi.iliZed. but the trade wss hardly
/ prepared for the pessimistic account SEN
nv Consul Robertson, stationed at Man
chester, who cBblcd aS follows To Wash
ington: Textile industry seriously dc
pressed before war now paralyzed
! Wholesale closing OF mills seem inevi
, table. Gloomy outlook for raw cotton
Impossible to prophesy extent Of damsg,
to Industry
The Chronicle furnishes the following
week. end figures Into sight 1884 bales
against 7s.51i bales last year. Tota
for the season thus far ii,i67, o56, sgJ,inS
lSG99c0 last year. The visible suppl,
OF American cotton is placed at 1861 .00'
bales, against o.. 900 last year. Spin
ners' taklngs for the week were place,
at 1857 against 1s1.S0T last year.
Various firms throughout the cottoi
trade yesterday were busy sending gu
kilograms and letters to customers ask
Ing for authority TO transfer commit
ments into the December position at Ger
tain specified discounts or premiums 7
Is believed that this step will bring abou
rapid liquidation In outstanding en-
sagements, Although no cables were re
celved from Liverpool yesterday 1t wa
believed that information Tomorrow
morning will give n pretty fair line oil
: the steps 10 he taken by Liverpool Il
cutting down contracts.