Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-08-26

thus totaled 22.50OOOO bales. The
declaration OF contraband against cot
/ ton. he Thought. would perhaps be moro
effective in keeping it out of Germany
IMAM were the orders in council. If
the worlds cotton requirements by
reason of the war were curtailcd 3,OOO.-
900 bales for the coming season, he
pointed out, that would represent the
amount that would usually go to Ger
many.
! The Federal Reserve Board. he said.
has been advised by the Department of
! AEriculture's Office of markets that the
public. private and cotton-mill ware
houses in the cotton-growing States in
1914 had an aggregate storage capacity
or 11.577.465 bales.
, 1T is thought not at all unlikely
he said. that before the present crop
! comes to market there will be 5000
! warehouses of all classes In the South.
Should this prove true, there will be
f, storage capacity In the Southern ware
| houses for not less than l2,5O0.oOO bales
| OF Nat cotton, while the cotton-m
| warehouses will be able to take care
! of 100000 bales Concensus of opin-
| ioH vi vi lit
; Reserve Banks OF ST. Louis. Richmond
| Dallas. Atlanta and Kansas City. con-
suited by counsel for the Federal Re-
serve Board. seems to be that the
| holder of negotiable warehouse re-
ccipts is protected from all claims of
| subsequent lien holders and subsequent
creditors the original owner of the
commodity covered by the receipt
BANKS IN SOUTH HAVE
| AMI'LE FACILITIES
| I'm view of difficulties that may arise
in satisfying distant lenders as to the
validity under all conditions of ware
house receipts for cotton offered them
AS collateral, it would seem that-for
the present, at lcast--loans cotton
must he first negotiated through local
banks in the South. These banks have
now ample facilities which they have
never before enjoyed for rcdiscounttng
the notes taken against such loans. and
1t Is for them more than for any other
agency to determine the policy of the
South i'll regard 10 the marketing 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 market within a short
period.
You have an opportunity of conserv-
ing the value Of the Souths greatest
asset. and upon you, Southern bankers
and merchants. rests the responsibility
OF the veal or woe of !, great agricul-
tural section perhaps for years. Lead
ing tinancers freely express the fear
that the sudden prosperity developed
in some sections and along certain lines
OF industry Will be followed by Pc
Rod OF wild speculation and imitation
The banking reserves of tins country
are considerably more than 1000. 0oo.-
600 III excess Of legal requirements
Our gold holdings. over s2,0O0.0O0. 600
are larger than those of any other two
countries combined. Our trade bal
ances are pilng up unprecedentedly
probably amounting to Sl.O00.O00.O0O
during the last six months Of 1915
What better security could a Southern
bank ask than the obligation of a mer-
chant or farmer which he has been
carrying on a crop not yet existent?
What better investment than to carry
this obligation along for few months
II necessary, secured by the actual cot
ton properly warchoused and insured
and certain OF market?
WILSON WANTS BANKS
TO ALLOW LOW RATES
President Wilson, in a letter read by
MIR. Harding, expressed confidence that
banks In the agricultural regions the
South particularly. would content them
selves with not exceeding - per cent
above the rate they themselves pay
on money for meeting the cotton prob
I'm. and said the cotton producers
should exact what they have Il right to
expect from the banks. The Prcsi-
dents letter. read as part OF Mr.. Hard
ing's address. was in reply TO a letter
which had been handed the President
in Washington by Mr.. Harding during
conference at the White House last
Monday. 1t follows:
My Dear Mr. Harding-Thank you
sincerely for Your letter OF August -
II gives me just the information / de-
sired
What interests me most is this 1t
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 41-2
per cent, and that the question whether
the BENEFITS Of this advantageous rate
lis to be extended TO the farmers is in
their hands. 1t is Uncomfortable TO me
that those who are responsible for
dealing directly with the producers OF
the country should be willing TO 1eop.
ardize the prosperity OF the country
itself by refusing 10 share with the
producer the beneficial rates now OBJ |
tainable for money loans.
II think that we can confidently ex-
pect that the banks in the cotton
States and in the agricultural regions
generally will content themselves with
a rate not more than ! or per cent
above the rate which they themselves
pay. ] hope that the facts which you
nave stated TO ME will become gencr-
ally known among the producers of
the country, so that they may feel
themselves free 10 exact OF the banks