The Birmingham age-herald., 1915-08-31
NESb|TT WR|TESON
 COTTON SITUATION
 IN OPTIMISTIC VEIN
Only Million Bales in Excess of Needs Up to August 13. Fifteen-Cent Staple
 Possible

W. D. Nesbitt. in an article in shis weeks Rotarygrams the official puhiiea ton of the Rotary club of Birmingham, Of which Oliver Cox is editor, presents fig ures to show that the worlds supply of cotton in excess of it's needs up to Au- gust 13 1916, is only 100000 bales. Mir Nesbtt figures this way:
 Bales American crop. 1915 testimated). .12 ,oJo, 10 Balance of world, 1915 testimated). 5000. 600
 
 Total ...............-.......22G 22 Go ,to0 He points out that the world will con sume 2l00o.00o bales during the next i2 months from figures available.
 MT. Nesbitt's figures do not Include the worlds supply of invisible cotton that Is, cotton held on farms
 The article in full, as printed in Rotary grams, follows:
 Article on Cotton
 An occurrence of far reaching impor- tance of the past week was the visit to Birmingham, for a conference with sonth- ern merchants and bankers, of Hon. W. P. G. Harding. the Alabama member of the federal reserve board. He brought from President Woodrow Wilson and Sec retary of the Treasury William McAdoo written messages to the southern colt sn producers and business men His address at the Biion theatre on Thursday night before the Alabama Merchants associa. tion was an unusually able exposition of our financial and cotton situations
 The outstanding facts in these messages and address were:
 "(FirsD-Through the operation of the federal reserve system there is now an ample supply of money to carry, if neces- sary, this years total cotton crop.
 ''tSecond)-To the extent that these funds are needed. southern banks msy se- cure them upon rediscounts with the fed eral reserve banks at an interest rate of ?1a per cent.
 'CThird)-The present democratic ad- ministration at Washington, through the President the Secretary of the Treasury, and the federal reserve board. urges the cooperation of all southern banks 1the only avenues through which this mCney can reach the producer and cotton ~ner) to aid in bringing this cheap money to these southern borrowers against cotton and other non-perishable farm produe ts, when same are warehoused insured, and represented by proper warehouse receipts.
 The money is thus largely supplied and the method outlined by which our banks may distribute cotton loans in the south in small or large quantities at reasonable rates and still have profit for their labor and liability.
 This supply of loanable money is di- rectly helpful to the cotton producer or owner and indirectly it's distribution into our communities will stimulate all saurh- ern enterprises and supply to large ex- tent the cheap money long needed by the south
 "It Is time that we should rally to the support of a wise and conservative government that has kept us out of de- structive war entanglements, while ad- justing our internal financial affairs to enable each of us, whether individual or community, by proper study and effort to satisfactorily protect and develop our undertakings.
 Need of Warehouses
 "The Alabama Merchants association. through resolution. and MT. Harding in his address called attention to the need in Alabama for the passage of the uni- form warehouse receipts act, passed by the Alabama house and now before our senate for action.
 MT. Harding also made clear that in spite of English contraband orders. our cotton situation is tremendously strong, with a promise of increased rather than decreased prices from present levels. Tn spite of the European war and the largest American crop ever grown Q1,- 0Oo GOO bales last year), on August 13 1915, the worlds visible supply of cot ton was only 1000, GOO bales in excess of that on August 13, 1914. The war de emard for cotton used in manufacturing high explosives, tents, khaki, and other requi- sites, has been so great that seemingly it has offset the decreased amount used | 1xr Aust rio av,- pears that the world may consume dur ing the next 12 months 21,00,0Oo bales and that the prospective supply for that pe- riod is as follows: Bales. On hand August 13, 1915 ....,..... ,0oC American crop, 1915 (estimated) 12,000.0 .00C Balance of world 1915 (estimated) 6,00o.00i Total .22 900, ,OOs Excess visible supply August 13, 1916 only 100000 bales, which supply is the smallest for 10 years and so small as to make any price up to 15 cents possible "These figures do not include for either year the American invisible" supply of cotton held on farms which is now much larger than usual. T. seems a safe as- profitable basis this invisible surplus will not be added to the visible" supply available to manufacturers.
 Connected witt th,se facts Is the ad- d:tional one that 4 nerica from a debtor nation has become in the past six weeks large creditor nation, the financial cen ter of the world. with 5000 000,0Oo of gold to It's credit and more constantly com | ing. Without outside assistance It il able to finance its crops duilng prodIc- | tior and marketing. and its people, ai;t money available for carrying their over | SUI plies, are in position .o name profit atle prices for fheif products alid wal | for the buyer who . Ill pay them. IT | the south we have only to market ou, cotton slowly to se :c: an average prio. | for this crop that will paH. not chi, the cost of produ tion but a hands om' | M oft in addition