The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-12-08
COTTON SITUATION
ADJUSTING ITSELF.
DECLARES Redo
Creditors Working In Per-
feet Harmony With Debt
Ors-CreditOrs Give
Every Assistance

William p. Redd of Birmingham in a
letter to the New York Journal of Com
merce, which appeared in the issue of
December 4, discusses cotton conditions
as follows:
1.-The cotton situation in the south is
not as hopeless as 1t appears to many
who viewing 1t from a distance.
Not unlike the foreign exchange situa
ton, which seemed deplorable for a time,
the cotton situation is slowly but sure
" adjusting itself The creditors who
furnished the cotton belt with money
and merchandise to make the crop are
working in perfect harmony with the
debtor who shows good faith Having
financed the present crop once, the cred
itor is asking that at least a part of
his capital be returned to him In cash
and that the remainder be secured with
asked and granted.
Credits In Future
1.-THE merchant and farmer who is not
willing to show good faith is careless
of his obligations to an extent that
places him in a class unworthy of credit
when conditions are either normal or
prosperous. The credit man for the flu
ture will reckon credits in the south by
the good faith shown by the debtor fol-
lowing the European wars. This atti-
tude by those who invest their capital is
demanded by prudence and good judg
ment, and the seeker of credit who has
taken the advantage of the present sit
uation by not showing good faith should
suffer in proportion to his deserts.
THE south has a cotton crop equal
In size to any previous crop. In ad-
dition there has been grown more corn.
oats and other crops than ever before.
Many farmers are in a position to ad-
just their obligations on a satisfactory
basis and hold their entire cotton crop
for many months.
THE credit world is giving every assis-
lance to those worthy of it. granting
extensions. with cotton as collateral, for
from 30 days to 10 months as the ne
cessity demands without the assistance
of any other factor (such as a cotton
pooh, this readjustment is rapidly clari-
flying situation that looked hopeless 30
days ago.
1.-THE consumers of raw cotton are fac
ing situation that will change to a
condition more serious than has con-
fronted them since the civil war; Phe
REIMBURSEMENT referred to will retire from
the market until after the planting sea-
son of 1915 at least 100000 bales of cot
ton. The knowledge of the vast amount
of cotton being held will keep the price
under cents per pound. which is un-
der the cost of production In the mean
time crop diyersification has commenced
on ar enormous scale by comparison
with former years. The banker, the
manufacturer and the merchant have SO
clearly defined their policy for another
season that the southern farmer has no
alternative between growing cotton un-
der the cost of production without credit
and growing food crops with credit, with
the prospect of very profitable returns.
The cotton acreage of necessity will be
reduced SO per cent.
Prolific Cotton Year
This has been a prolific cotton year,
and statistics for 10 years show that
nc two big crops have followed each
other. Under normal conditions we could
not expect more than 100000 bales
with full acreage; under present condi-
TONS 100000 bales With Germany TAX
ing cotton under England's ruling, we
will export 100000 bales of this crop
and consume 100000 bales at home
With an estimated crop Of 15,500,0O0 bales
we will have disposed of 13,000,000. leav-
ing a surplus of 100000 Add this to
the cotton grown on SO per cent acre.
age and you have 100000, with the wars
pr obably over and the world demand
ing is, 900 900 bales of American cotton.
What will the spinner then pay for cot
ton.
when the boil weevl first entered
the south it brought adversely to those
sections for one year. The kind of d.
versification above described was of ne
cessty forced upon them. These Sec
tons today are prosperous and not suf-
fering from the low price of cotton. The
cotton belt as whole will undergo
wonderful agricultural change next
season. Truly, Lord Bacon was right
in writing that, while prosperity doth
best discover vice. adversely doth best
As-~a~.As ~-i.&M~ss