The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1915-08-30
until they can transport it to

Mr.. Harding said the south's well
fare depends upon the marketing of
cotton at fairly remunerative rates
and southern bankers should, wherev-
er 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 bank
ers should be willing to forego tenn
porary profits for the sake of secur-
ity depended upon under their power
of rediscounting to cooperate to the
fullest extent with the banks in TAX
ing care of the cotton crop. and this
assurance is. of course, not confined
to cotton loans. but extends to other
staple commodities.
1T is now a matter OF public know
ledge that the British government and
its allies have declared cotton an abb
solute contraband. By that it is
understood that cotton will be sub
ject to seizure, even when consigned
to neutral countries, unless the ship
ment is made in accordance with the
terms and limitations of the proc
lamation declaring it contraband. AS
the annual takings OF American cotton
by Austria and Germany amount to
about 5000 900 bales, the attitude of
Great Britain and her allies has Gre
ated much uncertainty in the cotton
trade and great apprehension on the
part of cotton producers in the south
Mr.. Harding assumed that 22,50O,-
goo bales represent the worlds nor
NAL consumption. The visible sup
ply now, he said, was 4,250,0O0 bales
and an estimate of 12.90e,OOO bales
for the present American crop could
not be regarded as too low. He took
8 900 600 bales as fair estimate Of
all other countries. His estimate for
the next twelve months including
what is now in sight, thUs totalied
% 100000 bales. The declaration Of
contraband against cotton, he thought,
would perhaps be more effective in
keeping it out of Germany than were
the orders in council. If the world s
cotton requirements by reason of the
war were curtailed 3,Ot1 00C bales FOR
the coming season, he 10 ntcd out
that would represent the amount that
would us ally 50 to Germany.
The federal "c5er"e board, he said.
had been advised By the department
of agriculture's office OF markets that
the public, pr',t.c and Gotten mil,
warehouses in the cotton growing
states in 1914 had an aggregate stor-
age capacity of 11,577,465 bales.
1T is thought not at all unlikely =
he said, that before the present crop
comes to market there VIII be 5000
warehouses of all classes in the
south Should this prove true, there
will be storage capacity in the south
ern warehouses for not less than 12,-
| 500, 900 bales of fiat cotton, while the
cotton mill warehouses will be able
to take care of 100000 bales. Con
census 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 negotiable ware.
house receipts is protected from all
claims of subsequent lien holders and
subsequent creditors the original own
er of the commodity covered by the
receipt.
''In view of difficulties that may
arise in satisfying distant lenders as
to the validity under all conditions
Of warehouse receipts for cotton Of
fered them as collateral it would
seem that, for the present at least,
loans on cotton must be first nego.
tiated through local banks in the
l
south. These banks have now ample
facilities which they have never be-
fore enjoyed for rediscounting the
notes taken against such loans and
it is for them more than for any
other agency to determined the policy
OF the south in regard to the market
ing of the present cotton crop. The
results OF a gradual marketing of the
crop this season will be far more
satisfactory than would be the case
were the crop forced upon the mar
ket within a short period.
"You have an opportunity of con-
serving the value of the south's great
est asset and upon you, southern
bankers and merchants, rests the re-
sponsibility of the veal or woe of a
great agricultural section perhaps for
years. Leading financiers freely eX-
press the fear that the sudden pros
perity developed in some sections and
along certain lines of industry will