The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1915-08-11
MEMBER FEDERAL BOARD
DISCUSSES THE SITUATION
Harding Gives His Views on the Cot
ton Situation, Comparing This
Season With the Last.

Conditions that confront the Soutl
in handling the 1915 cotton crop ane
the conditions year ago are con
trasted by w. P. G. Harding, OF the
federal reserve board, in the curren
issue of the Federal Reserve Bulle
tin. The position Of cotton to-day II
much stronger and financial and 9th
er conditions are much better than &
year ago, in Mr.. Harding's opinion
and if the people OF the South viii
not weaken their position "by unwise
action" they have little to fear.
"The cotton tragedy OF 1914" says
Mr.. Harding, will be succeeded II
1915 by nothing more serious than q
drama" Mr.: Harding warns the
South in it's desire to see broad mar
ket established for cotton to do moth
ing to embarrass President Wilson in
his conduct Of international affairs
"It should be remembered says Mr.
Harding. ''that the president owes a
higher duty to the South, to the
whole country and to mankind at this
juncture than the establishment OF
cotton values. Serious complications
between this country and any great
foreign power certainly would not
enhance cotton values"
After comparing conditions AFFECT
ing the market this year and last,
Mr.. Harding says:
"Under the most adverse condi-
tions conceivable, with decentralization
in every money market, with high In
terest rates, with emergency currency
being issued daily in large volume,
with enormous gold shipments
abroad, with crippled shipping facili-
ties, without adequate insurance pro-
lection and with ocean freights three
to five times normal, we began In
August, 1914, to market a crop OF
nearly 100000 bales Of cotton.
Financial institutions, already hard
pressed, were unable and unwilling
to make advances on cotton. In i'd
dition to this the Southern farmers,
who have this year planted record
breaking food crops, were faced with
a. deficiency in home-raised food
stuffs, and were in many cases forced
to sell cotton to pay off pressing in
debtedness and to secure adequate
food supplies"
Attention is called to the fact that
the high prices for cotton now pre-
vailing in Germany and Russia, about
thirty cents a pound, will attract cot
ton to those countries in spite OF ap-
parently insurmountable obstacles,
Just as high prices paid for cotton
abroad during the civil war made
blockade-running a steady business.
There seems to be no question that
ample funds can be obtained to fin
ance in a normal way much larger
volume of cotton than was taken
care of last year, and that even II Ger
many and Austria-Hungary should be
forced to suspend cotton manufacture
ing entirely, statistics show that the
mills of the united States, Great Brl-
tain, Spain, Russia, Italy, Japan,
China and India have spindles suffi-
cient to absorb every bale Of cotton
that is likely to be cultivated.
"It should be noted" says Mr..
Harding, that the reduction IN
American cotton acreage this year
amounts to more than 100000
acres, and that Egypt and India have
also made radica, reductions In cot
ton acreage. 1t is probable that the
worlds cotton crop, based on an
average yield per acre, will be about
100000 bales less than last year.
Cotton, unlike grain, is com
modify the market value Of which de-
preciates in time OF war, and the
South was a producer Of that COM
modify has suffered.
"The actual position OF cotton,
however, is so much stronger than
was the case a year ago, the financial
and other conditions are so very
much more favorable that there can
be no doubt that if the South will
keep cool and will refrain from mere
ly weakening its own position by un-
wise action the prssent nervousness
regarding the market for the growing
crop will soon disappear.
Even in the face of all the adverse
conditions during the last twelve
months the average price OF cotton
has been about what might have been
expected for a 17,000,000-bale crop
had there been no war, and there is
every reason to believe that the aver
age price of cotton during the next
twelve months will be higher. The
real question is: Will Southern mer-
chants and Southern bakers, and all
others interested in Southern trade
cooperate in securing for the cotton
producer the benefit Of this average
price, and will the cotton producers
themselves do their part? My knoWl-
edge of Southern character and OF
Southern business conditions justifies
a confident belief that an affirmative
oneuyar will ha GIVEN