The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-12-01

harvest Is OF almost unprecedented
quantity, so that there seems to be
likelihood that the supply would be in
excess of the demand, which, of course,
would affect the market price.
But even with respect to this mat
ter there is difference of opinion. The
worlds demand for cotton appears to
haye been increasing relatively in SYM
pathy with the increased production it.
self. Our own population is increasing
so rapidly that according to the best
estimates we shall have a poulation by
1850 of at least $50, 600, 900. Every man,
woman and child here or anywhere else
is dependant upon cotton for clothing
ard articles of domestic use. Furthur-
more. with the opening of the Panama
canal to navigation, 1t is probable that
there will come a considerable demand
for American cotton or cotton goods In
South America. On the western coast
of the South American continent, cotton
mills have already been establ she'd
Gome of them representing investment
by American capital like that furnished
by William r. Grace and company.
The Cotton Situation
There are many phases of the pres
ent cotton situation unlike any other
associated with our national industry
or our export trade and 1T is In view of
hese that Festus j. Wade of st. Louis
conceived and then worked out plan
for establishing cotton pool of 1885,
100000 This is purely emergency
measure. 1t aims to reach and cover
some of the difficulties which have
been caused by the outbreak of the
European war.
And yet there begins to be evidence
that the cotton manufacturing nations
of Europe, even including Germany, are
now strongly disposed to enter the
American market. especially at this
time when the market quotations for
cotton are below the cost of produc-
ton. Exports of cotton are increasing
each week by many thousands of bales.
And yet the purchase of these large
cargoes of cotton, some of which are
designed for Germany, can give only
Partial relief to the cotton planters OF
the south
One of the reasons which persuaded
Mr.. Wade that his plan is expedient Is
the certainty that there can be no great
loss to the planters of the south on
account of their cotton harvest OF this
year without thereby entailing eff
feots upon general American business
which may to some extent retard the
revival of general prosperity.
On the whole, this cotton problem is
the most difficult--although 1t is not
of the Immediate and pressing import
ance of the others which American
financing has now relieved-of all the
problems raised by the outbreak of
war in Europe. In some parts of the
south there seems to be regret that the
New York cotton exchange is open for
business And yet unless some new way
can be discovered for financing the cot
ton harvests, present and prospective,
~ Is Inevitable that the kind of deal
ings which are carried on upon the
floor of the cotton exchange will in
the long run be of advantage to the
cotton planters.
II there is anything which has been
taught by the experience of the cotton
exchange 1t Is that whenever cotton or.
in fact, any staple commodity sells
lower In the open market than the
cost OF its production. 1t Is certain
speedily to recover and sell at rig
urc reasonably above the cost OF pro-
drction That effect is inevitably pro-
duced through the operations upon the
floor of the cotton exchange.
Some intimations have come to this city
that in certain parts of the south pres
sure Is being brought to bear upon the
planters with intent to compel them, GER
tainly to persuade them, to plant less
cotton in 1915 than they have for some
years been doing. But the opinion OF
those who are OF authority In the cotton
exchange H. that no pressure of that kind
will be necessary. There is likely to be
voluntarily curtailment Of cotton plant
ing next year. What is lost in cotton may
be made up in other agricultural prod
ucts, especially corn, for It 10 now known
that several Of the cotton producing
states of the south have in soil and ell
mate the best of all qualifications for the
production Of abundant harvest of Indian
corH With the present diversification OF
industry there is no danger of overpro-
duction of this cereal.
A Waterway For Grain
A year ago, at the time when 1t was
practically certain that the Panama canal
would be ready for navigation some time
in 1914, limitations came to New York
that the canal was in all probability to
be utilized for carrying unbroken cargoes
of grain, principally wheat. from our Pa
cific coast and British North America to
Europe. 1t was the understanding In Can
ada that a considerable portion Of the
wheat raised in her northwestern wheat
region would be shipped from Vancouver
| to Europe by vessels which would pass
through the Panama canal. This was
understood to be one of the reasons why
| the Cunard company absorbed one OF the
| leading steamship companies OF Great
Britain.
Already there has been justification of
this prediction. From the Pacific coast
there have been cargoes Of grain cf all
kinds aggregating considerably more than
Is. 100000 carried within a few weeks In
Ia large number of steamers whose ulti-
mate destination was some one Of the
European ports. principally Liverpool
This is only beginning. Grain from the
Pacific coast OF North America, sugar
from Hawaii and nitrates from Chile are
to make up the greater part Of the COM
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