The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1915-06-17
WHAT HOKE SMITH SAYS
GREAT BRITAIN DESTROYING
FOREIGN MARKET FOR COTTON.
Is Without Warrant in Law or JUS
tice.-AdvocateS Closing Markets
t. England.

w aSnlQStOn, June Ni'e u
States Senator Hoke Smith has given
out an interview, in when
he most forcibly asserts that the peo-
pie of the country, particularly OF the
South, through their representatives
in congress and through their infiu-
ence in Washington, must promptly
and vigorously take steps to compel
the British government to call OF its
illegal blockade of neutral European
ports, whereby irreparable injury is
being done 10 this country, and par
ticularly to the South, through clos
ing so many important European
markets to cotton, etc. Senator
Smith is convinced that we have 1t
in our power to open the seas to our
non-contraband commerce by simply
refusing to supply England and her
allies with ammunition until she re-
cedes from her present unwarranted
and unprecedented position.
Senator Smiths interview is as
follows:
The public mind was justly filled
with horror at the sinking of the Lu'
sitania. But We should not for this
reason forget that Great Britain and
her allies have utterly disregarded
the rights of American citizens. have
placed a heavy burden upon the ieSl-
innate commerce OF this country, and
have injuriously curtailed cotton
markets.
Just before the war began mid
ding cotton was selling at Is II
cents a pound. We normally sell
abroad two-thirds of our cotton crop.
For a while our entire foreign mar
ket was cut off. Our domestic mar
ket was seriously impaired by the
disorganized condition Of our Il
nances.
Too much praise cannot be given
the administration for the manner
in which our currency laws were
amended and threatened liquidation
prevented. Now the reserve banks
are in a position where they can is
sue, if necessary, from 700,000,OOO
to $500, 100000 of reserve notes full
ly secured, and our domestic market
for cotton is removed from strain.
Last fall exports were hampered
by the enormous insurance rates on
trans-oceanic shipments. The war
insurance bureau established in the
treasury department reduced war in
surance rates. which were ranging
from 20 to 80 per cent, down to :
and per cent.
Why Cotton Went Down to Six Cents.
Still, during the latter part of Oc-
tober the price of cotton did not rise.
The markets of Germany, Austria and
northern Europe consume over 81
100000 bales of cotton annually.
This market remained closed. Buy
ers of cotton thought it would con-
tinue closed, and the lessened de-
mand, coupled with the threatened
surplus, carried cotton down to six
cents pound, with limited market
even at that price.
Shipments of cotton to Germany
Austria and northern Europe were
prevented by the constantly circulat-
ed reports that Great Britain intend
ed to put cotton on the contraband
list and seize vessels carrying cot
ton.
October 23rd the acting secretary
of State, at the instance Of a COM
mittee of senators, conferred with
the British ambassador. and urged
the British government to give def
mite statement with reference to cot
ton shipments. October 26th the
British ambassador presented to the
State department a letter which con-
tanned the following language:
Last night received a reply from
Sir Edward Grey in which he author
ICES me to give the assurance that
cotton will not be seized. He points
out that cotton has not been put in
any of our lists of contraband. 1t is,
therefore, so far as Great Britain is
concerned, in the free list and will
remain there"
Why Cotton Jumped From Six to Ten
Cents.
The communication of this assur-
ance from Great Britain made it
practicable for cotton merchants to
secure vessels and to finance ship
ments of cotton to Germany, Austria,
and to northern Europe. This mar
ket was thus opened. Cotton buyers
realized the broadening market for
cotton. During the months Of De-
cember. January and February large
quantities Of cotton were shipped