Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-26
Welfare Depends on Marketing.

Mr. Harding said the south'S welfare
depends upon the marketing of cotton
at fairly remunerative rates, and
southern bankers should, whenever
possible, make liberal concessions in
| their usual rates on commodity loans.
High interest, he pointed out, means
| forced sales
present conditions" he said, fully
| justify low rates. and southern bankers
should be willing to forego temporary
profits for the sake of security ana
the federal reserve banks may be de-
pended upon under their power of re-
discounting to cooperate to the fullest
extent with the banks in taking care
of the cotton crop, and this assurance
is, of course. not confined to cotton
loans. but extends to other staple COM
modities.
ut is now a matter of public knowl-
edge that the British government ana
its allies have declared cotton an alb
solute contraband. BY that it is under
stood that cotton will be subject TO
seizure, even when consigned to neu-
trail countries, unless the shipment is
made in accordance with the terms and
limitations of the proclamation declar-
ing it contraband. AS the annual tax
ings of American cotton by austria and
Germany amount to about 3OO0,O00
bales, the attitude of Great Britain
and her allies has created much uncer-
tainty in the cotton trade and great
apprehension on the part OF COTTON
producers in the south.
Worlds Normal Consumption.
Mr.. Harding assumed that 22.500.00O
bales represent the worlds normal con-
sumption. The visible supply now, he
said. was 4,250.OO0 bales. and an esti-
mate of -, 0OO, 900 bales for the present
American crop could not be regarded
as too low. He took 100000 bales as
a fair estimate for all other countries.
His estimate for the next twelve
months, including what is now in sight.
thus totaled 22,50O,O00 bales The dec
laration of contraband against cotton,
he thought would perhaps be more
than were the orders in council. If
the worlds cotton requirements by
reason of the war were curtalled $780,
| 600 bales for the coming season, he
| pointed out, that would represent the
amount that would usually go to Ger
| many.
| The federal reserve board. he said,
\ has been advised by the Department of
Agriculture's office OF markets that the
public, private and cotton mill ware
| houses in the cotton growing states in
1914 had an aggregate storage capacity
of II, SIT .465 bales.
| ut is thought not at all unlikely" he
said, that before the present crop
comes to market there will be 5000
warehouses of all classes in the south.
Should this prove true, there will be
storage capacity in the southern ware
houses for not less than 12,500.000 bales
of fat cotton, while the cotton mill
warehouses will be able to take care of
/, 3O0,O bales. Concensus of opinion
of representatives of the federal reserve
| banks of st. Louis. Richmond. Dallas,
| Atlanta and Kansas City, consulted by
counsel for the federal reserve board,
seems to be that the holder of nego-
table warehouse receipt is protected
from all claims of subsequent lien
holders and subsequent creditors the
original owner of the commodity COW
cred by the receipt.
I'm view of difficulties that may
arise in satisfying distant lenders as
| to the validity under all conditions of
| warehouse receipts for cotton offered
them as collateral. 1t would seem that,