The Washington herald., 1914-10-18
Relief ASSURED
BY COTTON POOL
Gold Fund VIII Get Trade
Started. but Next Crop
Must Be Cut.
RAILROAD RATE RAISE
Forceful Resolutions Adopted for the
Interstate Commerce Commission
Meeting Beginning Tomorrow.

The relief 10 the cotton planter through
the operation Of the cotton gold fund win
be by a more or less circuItous route, but
It VIII be none the less efhcacious for
that reason. The planter in the first in
stance win have to go TO the manufac-
turer, the manufacturer will then call
upon the merchant. the merchant will
deal with his own bank and this in turn
will call upon the Federal Reserve Board.
which viii give the necessary assistance
out of the fund
All interested in the trade must under
stand that there is no desire to make an
artificial price for cotton, the purpose be-
ing merely 20 get the trade started and
relieve the whole country OF one OF the
most difficult problems by which il has
been beset since the outbreak OF the Eu-
ropean war. The Wade plan is entirely
different from government aid proposals
There is a prospect OF a substantial in
crease in exports of American cotton
fabrics, and through the administration
Of the fund the mill owners will be able
70 obtain supplies OF raw material and
to sell their finished product on a basis
low enough to encourage the growth of
that branch of trade. Low cost Of pro-
duction is always a great aid in the de-
velopment of an expert business, and 1t
may yet be found that the present de-
have not been an unmixed evil, as they
may help materially in enabling Ameri-
can manufacturers to capture markets
which heretofore have obtained their sup
plies from Europe. Once the markets are
captured 1t should be a comparatively
easy matter to hold them.
Sir George Paish, who is here today,
evidently regards the cotton situation as
Of vital importance In his opinion the
price of cotton in speculative contracts
will depend upon the amount of surplus
cotton taken OF the market in the United
States. If the st. Louis plan of raising
s1500O0.OOO TO lend on cotton at about
cents a pound is carried out, the cotton
growers and spot merchants in the South
will be able to hold back about 50OO,0OO
bales and the remaining 100000 bales
Of the estimated crop will then move
freely.
Domestic and foreign mills and cotton
merchants will hold OF until they find
out how the surplus cotton is to be
taken care Of, and they will not buy
freely for future requirements until they
know what next seasons acreage is to
be. As this works out IL 100000 bales are
taken of the market through the opera
ton of the st. Louis cotton pool plan
and the balance is sold as actual con-
sumption absorbs it the Southern inter
ests will get 10 cents or more for the
100000 held back if the acreage is cut
in two.
If another full crop is planted the
price will go down to still lower levels
because the price of 5,OO0,OO0 bales will
hang over the market and will become
distress cotton of the worst kind at
the end of the year. II should be un-
derstood that cotton that is held simply
is transferred to next years crop.
Railroad Rate Increase.
In view of the reopening of the rail-
road rate case before the Interstate Com
merce Commission tomorrow, resolutions
passed by the Missouri Press Association
are not only, timely but state in a concise
and forcefuI form the necessity of the
commission taking favorable action at
the earliest practicable date.
The resolutions are as follows:
Where's. The railroads Of the United States are
the most vital forces for agricultural commercial.
and industrial progress in the nation well the
largest employers Of labor and the heaviest pur- |
chaseIs Of steel lumber and other materials; and,
Whereas, The European war has closed to them |
indefinitely the money markets Of England. Ger |
many, France, Austria. Belgium and Holland thus \
compelling them from this time forward 10 finance l
their needs and requirements in the United States
and bringing them face to face with the greatest /
crisis IN their history: md
whereas, We believe it essential for the future
agricultural Commercial and industrial welfare Of |
the nation that the railroads Be permitted receive
hiFh-class service. to make such improvements and
bettsrmeuts from time &C time the needs Of the
different communities may require, and to reestab-
lish American railroad securities a highly re-
spectsd and sound investment; therefore. be il
Resolved, That the Missouri Press Association,
realizing the great and vital part which the railroads
have played in the deveIopment Of great Com-
nonNealth in the past. and the further fact thst
We are still in need Of many new lines and extsn-
sionS before we shall be able realize the fullest
possibilities Of the matches Of State
invites the cooperation Of al thinking citizens and
our law-makinE bodies to the accomplishment Of the
hove ends In this connection heartily indorse
the nonpartissn proposal Of Congress to surround
the issuance Of railroad securities With such safe
guards as viii hencefoFtE protect the public and /
the purchaser Of railroad securities alike"
JuIy-AuEust Earnings.
The Norfolk and Western reports for
July and August combined as follows: ]
lsA lsL2