The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-08

local thundershowers to-day and probably
20 morrow; moderate shifting winds.
For Louisiana, local thundershowcrs to-
day and probably tomorrow; somewhat
warmer tomorrow. moderate winds, mostly
south
For eastern Texas. partly cloudy In north
local thundershowers in south portion to-
day: probably fair tc-morrow; moderate
south winds.
For western Texas. fair to-day and prob
ably tomorrow.
For Oklahoma. fair continued warm TO-
dsy and probably tomorrow.
For Arkansas, partly cloudy and warmer
to-day: continued warm and generally fair
tomorrow
In cotton circles the overshadowing
topic at present is the financing OF the
crop. Cotton Is already beginning TO
move and receipts will be more than
quarter Of q million bales before the first
OF Septernssr. Picking Is becoming gen.
erai IN southwest Texas and tho fields
IN southern Georgia are white with open
boils.
Various plans have been suggested tor
handling this big problem. but II must he
admitted that the proportions chat have
come from the south Snow an utter lack
OF appreciation OF the economic obstacles
TO be mot. Secretary McAdoo has already
voiced his disapproval of tho proposal
that the Government advance $50 per
bale or 10 cents per pound, to the cotton
growers w =. G. Harding OF Birming-
ham, Ala, a member OF tho Federal Re-
servo Board would not permit himself to
be quoted as favoriug any valorization
plan. Mr.. Harding took the position that
this was a matter for Congress TO pass
upon, and moreover he stated that the
tf,,,,
ketlng problem was entirely unJustihed.
"Why should Il he assumed that the
Southern cotton grower Is compelled 10
rush his crop 10 market at any price ne
asked THE banker Is not necessarily
compelled TO have his money from the
producer the moment the cotton is IN the
bale These loans have been In force for
several months, many of them since the
planting OF the cror. n II customary
for the farmer 30 take the proceeds from
the sale OF his first cotton and liquidate
his obligations The present crisis, now
ever. calls for unusual treatment and
bankers should exercise patience and not
press farmers too hard
There certainly will be enough or
this emergency currency going to the South
TO enable banks to loan $40 per bale on
a great deal Of this cotton Doubtless a
good deal OF the early receipts Will nave
TO be sold at a sacrifice. for no organized
~, 80 nra., g., a d,y or % Where
loans are already In force they should
be extended. This IL no time 10 put tn.
screws on the agricultural producer. SO
FAR as any definite plan ls concerned, this
rro,,abty y,iu no ,h-eshed o,rt nj tho meet o.
H. ~ southern banl,,nr and cotton in
,aTes,s IN Wsshington next week."
AItboiv, II would appaar that senti-
men, in southern banking circles and also
II, the Treasury Department AT Washing
ton Ia against any scheme approaching
valorization proposal. It cannot be def
nitely stoted at this time that some such
method will not be adopted. Nalor.2ltiun
in prIncip,e Ia not favored, hut tho present
emergency IS so extraordinary that prin-
cipl. might be cast aside for temporary
| expediency. II would not he surprising
therefore. II a valorization rlan. or some
thing like II, should And some very strong
adherents at the meeting which will take
place in Washington probably next Thurs-
/ day.
There are other questions 20 he consid-
| cred In the holding of the South's cottor
| besides the financing. The present crol
/ promises TO bo in excess OF 100000,
bales, and might run close TO l5'ooo'o o'
bales, including hnters rms prospectiV'
production might be reduced by an cary
frost, but the minimum propbp'y WON'T
not be far from 140oO'ooo paies'
II the South is to borro" money ano
hold its cotton, IN. question then arises
as TO where the unmarketed reserve ~ 10 De
stored. The present warehouse tacllltles o'
tho South have never been adequate foi
a crop that did not move rapidly 10 mar
ket II is doubtful II the total storage
facilities OF the great ports OF Galveston
New Orleans, Mobile savannah, charles
ton, Wilmington and Norfolk could TAKE
care OF more than 100000 bales. Th'
great interior markets OF Houston, Mem
phis Augusta, 81. Louis and Little Rock
In addition 10 innumcrable small interior
towns, might provide for 100000 bale'
or more.
Assuming, therefore, that the crop II
"a, 1000 900 bales. some storage protection
that Is not now forthcoming must b
given TO several million bales or the dam
age from bad weather will be enormous.
This view, OF course, does not TAX
into consideration the possibility OF al
, early termination OF the ocean embargo
which might come with a sweeping Brit
ish naval victory. Moreover. II cotton !
on the bargain counter American mill
are going 10 buy very freely. notwith
standing the fact that there Is complet
stagnatfon in textile circles at present
American manufacturers undoubtedly rea
lie their opportunity and will go afte
tho export markets for cotton goods a
they never have before.
one big influence In saving the stua
ton will be the contract markets.
looks Ike the irony OF fate for the SCOUT