The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1915-09-16

Cd use tuo 1910 CIOp 10 Gel ldluls -,
100000 and possibly 100000 bales
short of the worlds demands, mean
ing that factories and munition fac
tories will consume all the present
yield with the greater part if not
all the worlds visible surplus, l al
so wish to call attention to the fact
that
HH.-Amrican Prosperity Justifies
Twelve Cents.
The American Bankers associa-
ton has just been meeting in Seat
tie, Washington, and what was the
message that the president of this
greatest organization of financiers
brought the country? He predicted,
says a press dispatch, that "an al
most unbelievable prosperity is rush
ing on the nation," or to quote his
exact words:
"When bank reserves, which are
greater now than they have ever
been in the history of the country,
are distributed, the nation will en-
Joy almost unbelievable prosperity.
The volume of money on hand is so
great that it cannot find natural
outlet. The movement of the tre-
mendous crops, with the attendant
financial activity, will still further
increase the bank reserves
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 practically one-fourth of
the total number, declared condi-
tions 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 overlook
ed is
IV.-The New Federal Reserve Act
Insures Better Prices.
President Hirsch, of the Texas
Bankers association, told the big
Cotton States conference of South
ern bankers in Galveston: "For the
first time in the history Of the South,
gentlemen, the Southern bankers
have the financial ability to market
gradually this crop. 1t would al
most appear as if the federal reserve
act had been drafted for the benefit
of Southern producers. Just be-
cause the reserve 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-needed rural credits legislation
is no reason for denying or mini
mizing the great advantages it does
offer.
The federal reserve system does
enable 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 rediscounting 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 pres
ent cotton crop
And President Woodrow Wilson in
a letter to Mr.. Harding writes: 1T
is evident from what you tell me,
that the country banks with whom
the farmer and other producers dl-
rectly deal can get money at from
four to four and half per cent.
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 one or
two per cent. above the rate which
they themselves pay" 1t is up to
the banks to justify this faith ex-
pressed 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 increas-
ed since then.
The next thing probably ought to
V.-Twelve-Cent Prices are Justified,
Contraband or No Contraband.
Of the s,543,0OO bales of Ameri-
can cotton shipped to Europe in the
fiscal year ending July 81, 1915, on
ly 242,00O bales went to German
ports. Of course, there was more