The Washington times., 1915-08-23
COTTON PROBLEM IS
ONE Of MOST GRAVE
BEFORE PRESIDENT
Decree Of Great Britain and
France Extending Contra.
band lntensifies Situation.
What is to be done about the south's

What is to be done about the south's
1tton crop?
This was an additional troublesome
question which confronted the Admin
istration today as the President and his
advisers began what undoubtedly will
be a week Of international problems.
The decree of Great Britain and
France putting cotton on the contra
Mand list has not been officially laid
e,efore the State Department. but the
promulgation Of such DEGREES in London
and Paris caused no surprise IN official
quarters here. 1t has been understood
bv tho Administration for some time
that the contraband cotton order was
being put into shape and formal decla-
ration was only a matter CT time.
It also has been understood generally
that this Government would register a
protest Immediately upon receipt Of the
contraband decree. It 10 not hoped.
however, either in official or business
circles. that the protest Of the United
States will be effective.
First Aid At Home.
Tho problem confronting the Wilson
Administration, therefore. 10 FIRST aid,
here at home, .or the cotton growers
and shippers.
The recent statement Of the Comp
trcller Of the Currency. presumably is
sued with Administration approval.
gives an insight into prospective tenn
porary measures of relief. Comptroller
Williams, q member OF the Federal re-
serve board. said the national banks
have now q reserve andsloaning capacity
which will enable them to finance the
entire cotton crop. to say nothing Of
half. II not all. of the wheat and to-
bacco crops. and billion dollars worth
of manufactured exports.
1t probably will be comparatively
easy ITO finance the cotton crop this
year. II the Administration throws
arm Of the Federal reserve syster'.
There must come payday" never
tneless, and 1t Is not now seen what
Ia to he done II the war continues
year or two years more assuming that
Shipping conditions meanwhile do not
improve
Protests Are Expected.
That the contrahand cotton order will
cause a wave OF protest throughout the
South and commercial circles generally
Is expected today. The Administration
Is preparing to tackle the problem at
the earliest possible moment, but 1t is
felt that diplomacy can do little. II
looks like the national bankssmust save
the staple.
The statement of Great Britain that
His majestys government contem-
plates the initiation Of measures to re-
lieve as far as possible any abnormal
depresl.on which might temporarily
disturb market conditions may mean
the intent Of Great Britain to make
actual purchase II necessary for the
steadying Of the market. The promise
Of England. nevertheless. is rather
vague IN the present commercial cri-
sis and the Administration proba bly,
will proceed with the means at hand in
this country to come to the relief OF
the situation.
Will LightenI Burdens.
In a sense, it Is believed here that
the contraband decree will tighten the
diplomatic burdens Of this Government.
Since tho PRONUNCIATION ,of the British
order in council, cotton has virtually
been treated as contraband by the
allies and many Of the cargoes which
have been seized. only to precipitate
diplomatic controversy, have been car.
goes Of cotton.
The United States \has consistently
maintained that Great Britain has vio-
lated internatio law In the halting
Of goods consigned to neutral countries
and particularly non-contraband goods
such as cotton. With cotton now on
the contraband list. that phase Of the
controversy Is eliminated. and there
Will be no parleying over payment fol
seized cargoes
Under former conditions cotton ex.
porters have not infrequently taken
the rsk of shipping the staple abroad
in the hope 1t would not run counter
to the blockade and would reach
destination. The contraband decree will
estop such shipments. although 1t Is
conceded there will be loud clamor
from cotton interests against the con.
traband decree.
The Government Is expected to heed
this clamor and to protest vigorously
to Great Britain and her ally. France
but 1t is not seen how the interchange
Of diplomatic views can alter the situa-
ton for the present.