The Fayette falcon. (Somerville, Tenn.) 190?-current, 1915-09-24

from all vCer the South, nut might
have added the further testimony
that the South cut its fertilizer con-
sumption this year from 4.431, 600
tons to 2.636,O00 tons-almost in half
and the effect of this cut will prob
ably make itself most evident from
now on as closer scrutiny is given the
fruiting of the crop.
The reader can easily see for him
self, therefore. that IL we have only
a 1O,OO0,OO0 bale crop, the factories of
the world would utterly drain the mar
ket dry, leaving It subject to such
conditions as occurred a few years
ago when spectators carried prices to
II and 20 cents a pound.
And now having pointed out that
twelve-cent prices are justified be-
cause the 1915 crop is certainly S,O0O,-
600 and possibly 100000 bales short
Of the worlds demands, meaning that
factories and munition factories will
consume all the present yield with
the greater part if not all the worlds
visible surplus, | also wish to call at
tention to the fact that
American Prosperity Justifies Twelve
Cents.
The American Bankers association
has just been meeting in Seattle,
Wash. and what was the message
that the president Of this greatest or.
ganizatlon OF flnanciers brought the
country? He predicted, says a press
dispatch, that IAN almost unbeliev-
able prosperity is rushing on the ma
tion." or to quote his exact words;
When bank reserves, which are greater
now than they have ever been in the his
tory Of the country. are distributed. the
nation Will enjoy almost unbelievable
prosperity. The volume OF money on hand
is so great that II cannot find a natural
outlet. The movement OF the tremendous
crops, with the attendant financial actiy-
ity. will still further increase the bank re-
serves.
And manufacturers are no less op-
timistie than bankers. The Factory
Magazine OF Chicago recently took
poll Of 16S eastern and middle west.
ern manufacturers as to the prospects
for business in the fall Forty, or
practically one-fourth OF the total
number, declared conditions "excep-
tional," % "hne," 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 overlooked
is
The New Federal Reserve Act lnsures
Better Prices.
President Hirsch of the Texas
Bankers association told the big
Cotton States conference OF southern
bankers at Galveston: For the first
time in the history of the South, gen.
tlemen. the southern bankers have the
financial ability to market gradually
this crop. II would almost appear as
If the federal reserve act had been
drafted for the benefit of southern
producers, Just because the reserve
act doesn't give the farmers all the
help they need-just because 1t
doesn't take the place, nor profess to
take the place. of the much.needed
rural credits legislation--is no reason
for denying or minimizing the great
advantages 1t 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 enjoyed for redis-
counting the notes taken against such
loans. and 1t il for them more than for
any other agency. TO determine the policy
OF the South In regard to the marketing
of the present cotton crop.
And President Woodrow Wilson In
q letter to Mr.. Harding writes: TT IL
evident from what you tell me, that
the country banks with whom the
farmer and other producers directly
deal can get money at from four to
four and half per cent. /. think |
that we can confidently expect that
the banks in the cotton states and in
the agricultural regions generally viii |
content themselves with a rate not |
more than one or two per cent above |
the rate which they themselves pay" |
II Is up to the banks to justify this |
faith expressed 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 stor-
ing 11,577,465 bales, and these facili-
ties have been greatly increased since
then.
Only by the most thoroughgoing |
cooperation Of all forces can we save
to the South the full quarter OF bill.
lion dollars OF hard-earned wealth that
will otherwise go into the hands of /
spectators and foreign interests.