The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1915-08-12
AMPLE FUNDS TO HANDLE CROP.
Federal Reserve Board Man Believes
Staple Will Advance in Price.

| the conditions year ago are con-
trasted by W. P. G. Harding, OF the
federal reserve board. in the current
issue of the Federal Reserve Bulle-
tin. The position of cotton today is
much stronger and financial and
other conditions are much better
than a year ago, in Mr.. Hardirg's
opinion. and if the people of the
South will not weaken their position
by unwise action" they have little
to fear.
The cotton tragedy Of 1914"
says Mr.. Harding, will be succeed
ed in 1915 by nothing more serious
than drama" Mr.. Harding warns
the South in it's desire to see broad
market established for cotton to do
nothing to embarrass President Will
son in his conduct of international
affairs. IF should be remembered,
says Mr.. Harding, that the presi-
dent owes higher duty to the South,
to the whole country and to man
kind at this juncture than the es
tablishment of cotton values. Seri-
Gus complications between this coun-
try and any great foreign power GER
tainly would not enhance cotton
values"
After comparing conditions affect
ing the market this year and last.
Mr.. Harding says:
Comparison of Conditions.
Under the most adverse condi-
tions conceivable, with demoraliza-
tion in every money market, with
high interest rates, with emergency
currency being issued daily in large
volume, with enormous gold ship
ments abroad. with crippled shipping
facilities. without adequate insurance
protection and with ocean freights
three to five times normal, we began
in August, 1914, to market crop of
nearly 100000 bales of cotton.
Financial institutions, already hard
pressed, were unable and unwilling
to make advances on cotton. In ad-
dition to this the Southern farmers,
who have this year planted record
breaking food crops, were faced with
deficiency in home-raSed food
stuffs, and were in many cases fore
ed to sell cotton to pay off pressing
Indebtedness 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 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.
Funds are Ample.
There seems to be no question that
ample funds can be obtained to f.
nance in a normal way much larger
volume of cotton than was taken care
of last year, and that even if Ger
many and Austria-Hungary should be
forced to suspend manufacturing en-
tirely, statistics show that the mills
Of the United States, Great Britain,
Spain, Russia, Italy, Japan, China
and India have spindles sufficient to
absorb every bale of cotton that is
likely to be cultivated.
1T should be noted" says Mr..
Harding, that the reduction in
American cotton acreage this yeal
amounts to more than 100000
acres, and that Egypt and India have
also made radical 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 a COM
modify the market value of which de-
preciates in time of war, and the
South as a producer Of that COM
modify has suffered.
THE actual position of cotton, how
ever. is so much stronger than was
the case 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 wifi refrain from merely weak
ening it's own position by unwise ac-
ton the present nervousness regard
ing the market for the growing crop
will soon disappear.
Even in the face of all the ad-
verse conditions during the last
twelve months the average price of
cotton has been about what might
have been expected for a 100000
bale crop had there been no war, and
there is every reason to believe that
the average price of cotton during the
next twelve months will be higher.