The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1914-08-30
EXPORTER
Of COTTON
GIVES VIEWS
DECLARES COLLAPSED CREDIT IN
EUROPE is REASON FOR Ex-
PORT STOPPAGE - SAYS COT
TON WILL COME INTO ITS OWN.

Oklahoma City, Aug. 29.-The true
reason of the curtailmeut of cotton
exports is the collapse of credits in
Europe rather than a lack of ships
in the opinion of w. l.. Clayton,
Oklahoma City exporter of cotton.
In statement reviewing the pres
ent cotton crisis and forecasting the
probable future consequences of the
same, Mr., Clayton says:
"It is commonly. but enormously,
stated that the present inability to
export cotton is due to a lack OF
ships.
The true reason of the complete
stoppage of cotton exports is the
temporary, but almost complete col
lapse of credits in Europe, and es
pecially in the great world financial
center of London.
There are plenty of ships sailing
20 England, Spain and Italy from this
country, anxious for cott)l or othe"
cargo, but almost al, they get is
wheat, flour and bacou
England dominates the seas and
war risk insurance is easily obtain
able at . per cent which is not eX-
orbitant, but Europe has no money
for cotton until their food supplies
are built up to a point of safety.
80 far as cotton is concerned,
am satisfied that we are looking at
the darkest aspect of the situation
now; any change must be for the
better. Even with a continuance of
the war, Europe must have some of
our cotton. and they will contriye
some means to pay for it. This coun-
try owes Europe a great deal of
money; some bankers have estima-
ted our European debt at $50, ,OO00 900
and this will grow with the maturity
of interest on our bonds and stocks
pay her with cotton, but at present
she demands gold or wheat. Later she
will take cotton.
Cotton Must Come Back.
"When the war is over cotton will
gradually but surely come back into
its own. 1t is almost an axiom of
the cotton trade that 10-cent cotton
is not dear, at cents it is cheap,
and at s cents it is a bargain. In
1911 the south raised a crop of 16,-
2500Q0 bales which was 100000
bales more than the world needed
but when the market touched 81
cents many spinners bought three or
four years ahead, which Put the mar
ket up cents per pound within two
months. There were spinners in
Russia that year who bought cotton
for delivery as far ahead as 1917
However, we must realize that
even in the most optimistic view
of the matter, we must arrange to
carry over until next season a con
siderable portion of this years cotton
crop-how much, depends on the
duration of the war, and so as to
that opinions are valueless.
"Unless the surplus which must
be carried over is financed in some
way so that the producer is not COM
PEELED to sacrifice it at ruinous prices,
this surplus will fix the price on the
whole crop, and that price will be-
almost, but not quite. n: very low
est figure at which the farmer can
afford 20 go into the fed ard pick
his cotton and gin and taic 4. No
one wants to see a result o. this kind
arising from a condition not the fault
of the farmer, merchant or banker
Ordinarily. sound economy is against
the use of artificial means of Dol
stering the prices in defiance of the
law of supply and demand But this
condition which We are facing is
not the result of the natural opera
tion of the law of supply and demand
The condition is without precedent
and must be met promptly and Wig
Orously.
Storage First Problem.
"The first problem to be solved
in Oklahoma is the matter of storage
and insurance of our suprlus cotton
and the issuance for same OF bank
able warehouse receipt
81 am firmly of the opinion that
every town in the cotton section of
the state should follow the example
of many Texas towns, and erect a