The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1915-08-27
HARDING EXPLAINS
COTTON SITUATION
Urges Southern Bankers to
Make Concessions to Finance
the Crop.
LETTER FROM PRESIDENT.
Wilson Says Cotton Producer Should
Exact What He Expects
From Banks.


board, told the Alabama Merchants
Association here that the placing of
cotton on the contraband list by the
allies did not create q desperate sit
telligent leadership. He urged
Southern bankers to make conces-
sions to finance the crop and pre-
dicted there would be international
| competition for the American crop
despite the fact that it was contra
band. Mr.. Harding handled, for the
reserve board. the arrangements for
the hundred million dollar cotton
loan fund. He explained to the Ala
bama merchants, however, that he
was not speaking tonight for the fed
eral board, but was giving his per-
sonal views.
Germany, said Mr.. Harding, sis
as anxious to have cotton as the allies
are to prevent her 1t is not incon-
ceivable that there may be evidences
before very long of international
South's great staple. 1t is at least
a possibility that cotton will be pur-
chased in large quantities for foreign
| account and stored in Southern ware
houses, to be shipped out as needed
and as opportunities for shipment
arise.
mo one has ever accused the Ger
mans Of being lacking in far-sighted-
ness. They are already looking for
ward to what will happen when pea CO
is restored and that they will make a
supreme effort to recover their lost
trade with other nations cannot be
doubted. Is it reasonable to believe
that they would look with compla-
cency upon the absolute control of
the cotton market by the mills of
England and America. permitting
them to secure their supplies of cot
ton at very low prices and defer their
own purchases until after peace is
made and take the chances OF secur-
ing then their own stocks at much
to believe that they will arrange to
buy cotton as the spinners OF other
nations buy it. and can they not
easily arrange to have their cotton
purchases stored in this country fcJ
their account until they can trans
port it to their own shores?"
REMUNERATIVE PRICES.
Mr. Harding said the South's vel
fare depends upon the marketing of
cotton at fairly remunerative rates
and Southern bankers should, wher-
ever possible. make liberal conces-
sions in their usual rates on com
modify 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 Sc
curity and solidity in the future I
am sure that the federal reserve
banks may be depended upon under
their power of rediscounting to CO.
optidte 10 the IulieSI extent Win the
banks in taking care of the cotton
crop and this assurance Is. of course,
not confined to cotton loans but ex-
tends to other staple commodities.
1T is now matter of public
knowledge that the British govern
ment and its allies have declared
cotton an absolute contraband By
that 1T is understood that cotton will
be subject to seizure. even when con
signed 70 neutral countries, unless
the shipment is made in accordance
with the terms and limitations of the
proclamation declaring il contraband.
AS the annual takings OF American
cotton by Austria and Germany
amounts to- about 100000 bales
the attitude of Great Britain and her
allies has created much uncertainty
in the cotton trade and great appre-
hension on the part OF cotton pro-
duccrs in the South"
WORLDS CONSUMPTION.
Mr. Harding assumed that 22,-
100000 bales represent the worlds