Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-09-17

And manufacturers are no less op-
timistic than bankers. The Factory
Magazine of Chicago, recently took a
poll Of 1853 eastern and middle western
manufacturers as to the prospects for
business in the fall. Forty, or practi-
cally one fourth Of the total number,
declared conditions exceptional" %
fine" or "above normal" 60 good
IS fair" and fairly good" only
seven dull and poor" and only one
much below normal and very poor"
Another point not to be overlooked
is
lIV.-The New Federal Reserve Act
lnsures Better Prices.
President Hirsch, Of the Texas
Bankers association, told the big
Cotton States conference Of Bankers
in Galveston: For the first time in
the history Of the south, gentlemen,
the southern bankers have the finan-
cial ability to market gradually this
the Federal reserve act had been
drafted for the benefit Of the south
ern producers" Just because the re-
serve act doesn't give the farmers all
the help they need-just because it
doesn't take the place-nor profess to
take the place-of the much h-needed
rural credits legislation-is no reason
for denying or minimizing the great
advantages it. does offer.
The Federal reserve system does en-
able the banks in the south, where
money is needed, to draw upon the
great reserves in other sections for
making loans on the cotton crop, or,
as Mr.. w. P. G.. Harding Of the Fed
eral reserve board, officially says:
Banks have now ample facilities,
which they have never before enjoy
ed, for re-discounting the notes taken
against such loans, and it Is for them
more than for any other agency to
determine the policy Of the south in
regard to the marketing Of the present
cotton crop"
And President Woodrow Wilson, in
is evident from what you tell me that
the country banks, with whom the
farmer and other producers directly
deal, can get money at from to Al
confidently expect that the banks in
the cotton states and in the agricul-
tural regions generally will content
themselves with a rate not more than
1 or per cent above the rate which
they themselves pay" 1t is up to the
banks to justify this faith expressed
by the head of the nation.
And the crop can be warehoused.
Mr.. Harding points out that even
last fall the south had facilities for
storing 11,577,465 bales, and these
facilities have been greatly increased
since then.
The next thing probably ought to
say is
V.-Twelve- Cent Prices Are Justified,
Contraband or No contraband.
OF the 8,543,000 bales Of American
cotton shipped to Europe in the fiscal
year ending July 81, 1915, only 242,OOO
bales went to German ports OF course
there was more that went indirectly
to Germany, but we must remember
that a considerable part Of Germany's
normal demand for cotton was export
ed to Germany's foreign trade, and
that this trade will now be supplied
by other countries. The contraband or
der may almost be termed Infamous
if England does nothing to compensate
us for trying to make southern farm
ers bear her burdens, but in any case
to offset the contraband order we
have Q) the greatly increased de-
mand for cotton for war purposes; (2)
the increased demand for American,
English and continental factories
that must supply the trade formerly
supplied by German mills, together
with the fact (3) that Germany is al
most sure to buy and store up cotton
right here in America to hold until
sea trade is re-opened. Even with
the contraband order in effect, there
fore, 12-cent prices are amply justi-
fled. whereas, with open seas to all
Europe, cotton would likely bring IA
or Is cents.
An able and eminent committee on
arbitration ought to be named at once
by England and America, to make a
fair and just estimate Of the damage
in price per pound resulting from the
| orders in council and contraband or
der, and England should then be re-
quired to pay this amount per pound
as bonus to every American cotton
producer this fall.
I confidently believe that II England
should change her contraband rules so
as to infiict corresponding injury upon
any strong American manufacturing
be required, and southern farmers
should rise up and demand that the
same recognition be given an agricul-
tural industry as would be given
manufacturing industry.
The practical lesson clearly taught
by present conditions, then, is
V.-Farmers Should Hold for Twelve
Cents and Bankers Should Help
Them Hold.
or course we must be reasonable
Don't expect bankers to lend on cotton
not stored or insured. nor expect them
to lend the full market value. Land
owing farmers Of good character who
have been depositors in banks. how
ever, will frequently be able to borrow
without such restrictions.
The thing 10 do is for farmers in
every neighborhood to organize, for
mally or informally, for standing to-
gether in holding and marketing the
crop, and find out just what the local
banks will do. Last year it was re-
peatedly stated by the minority Of
bankers who were willing to lend
money on cotton that few farmers
applied for such loans. Let not that
be said this year. We must keep the
! crop from being rushed to market at