The Birmingham age-herald., 1914-08-20
Expert, In Speech to Farm CTS Union, Points Out Effect of the War Raging In Eu-
 rope
THINKS GOVERNMENT SHOULD AID FARMER
 BY LOAN OF MONEY
Should Deal With Them Directly. Producers Ought to Agree On Minimum Price to Accept
 for Cotton Trying to
 Beat Farmers

Harvie Jordan, president of the south ern Cotton association. and said to be the best Informed man In the United states on the cotton situation. believes that the present crisis in the cotton market, due to the European war is the gravest that this country has ever faced. He so expressed himself yester- day afternoon in an address delivered before the convention of the Alabama Farmers Educational and Co operative union at the Jefferson theatre
 MT. Jordan pointed out that the Uni ted States has been shipping abroad to the countries now engaged in war ap- proximately s,o00,oo0 bales of cotton every year. This market, he said. now has been swept away for the time be- ing and it begins to appear that this years cotton crop will have to lie in the warehouses for want of a pur- chaser.
 The speaker expressed the opinion that the United States government should enable the farmer to hold his cotton by lending him money on it. thus maintaining a fair price on the com modity. The money from the govern ment to the farmer should be given by direct distribution and not through the medium of state and national banks, he said
 Harvie Jordan's Address
 MT. Jordans address in part follows:
 q want to say to you in all candor that we have never faced as serious a situation as We stand face to face to- q " T,, .<t.lo what the situation is we have got to analyze it. l will therefore, confine myself entirely to the production and the consumption of the American cot ton crop, which is now at hand
 Last year was a fair year for cot ton and We may take the figures on exports for that year as examples. Great Britain. Germany, Austria, Bel gium, France Italy, Russia. Spain and all the other little countries in Eu- rope including Holland. Denmark, Swe- den and Switzerland. consumed to- tai of something like s.000.ooo bales of American cotton last year. The American consumption is about s.5oo,- 900 bales. This year Great Britain probably will consume about three fourths of it's normal consumption, but what will happen in the markets of the world which now are closed? There is not a single cotton exchange in the wrold that is now open. This is the fist time in my life that I have seen a bale of cotton placed on the street for sale and not a buyer presented him self to bid upon it.
 Cotton is worth just as much today from a buying standpoint as it was before the war started. If the German army goes through Belgium it will mean the destruction of the cotton mills in France which consume something like 800.000 bales of American cotton every year. If we get an outlet in the United States for 600OOO0 bales and an export trade of, say, 50 per cent of the normal trade, that will leave about 100000 bales of cotton on the hands of the farmers. The yield of this years crop will be approx imately 14,000,O00 bales, according to government bulletins.
 Intention of Government Now. if these foreign countries which have been using our cotton are unable to continue to use it by virtue of continuation of the conflict our market will be lost.
 NOW Wndl QOeS tne SoNeTHHenI pro- pose to do? have not been to Wash ington. but I have been reading in the newspapers about conferences being held there every day. The proposition which has just been outlined for gov ernment aid Is about along this line: That they will pass bill for licensing cotton warehouses so that the govern ment will itself issue the license They have about $500.000.0O0 in emergency curr ency. About $3,000.000 of this money is to be distributed throughout the south to state and national banks to be used for the sole purpose of mak- ing loans on cotton to be held in ware houses. If the government adheres to that proposition it will mean that you will draw some or 10 cents a pound on your cotton. or 75 per cent of its value.
 q believe that the United States gov lernment should deal directly With the
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