The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-08-28
HARDING ON COTTON SITUATION
UH1Es SOUTHERN BANKERS TO
MAKE. CONCESSIONS TO I'm
= ANCE THE CROP.
I'm Letter President Wilson Says Cot
son Producer should Exact What
liz Expects from Banks.

Il. "a.
Harding. Of the Federal reserve board.
told the Alabama Merchants Asso-
ciauon here that the placing of cot
ton ON the contraband list by the al
lies did not create desperate situa-
toin, but rather one calling for intel
hgent leadership, He urged South
ernk bankers TO make concessions TO
hnance the crop and predicted there
would be international competition
Tor the American crop despite the fact
that IL was contraband. Mr.. Hard
Ing handled. for the reserve board
tho arrangements for the hundred
million dollar cotton loan fund He
explained to the Alabama merchants.
however. that he was not speaking to-
night for the Federal board. but was
giving his personal Views.
Germany" said Mr.. Harding, 'is
as anxious to have cotton as the al
lies are TO prevent her. 1t Is not In
conceivable that there may be eyi-
denees, before very long of interna-
tional competition for possession of
the .south's great staple. II is at least
possibility that cotton will be pur-
chased In large quantities for foreign
account and stored In Southern ware
houses. To be shipped out as needed
and. as opportunities for shipment
arise.
No one has ever accused the Ger
mans of being lacking In far-sighted-
ness, They are already looking for
ward TO what will happen when peace
Is restored and that they will make a
supreme effort TO recover their lost
trade with other nations cannot be
doubted. Is II reasonable to believe
that they would look with complacen-
cy upon the absolute control of the
cotton market by the mills OF Eng
land and America, permitting them
to secure their supplies OF cotton at
very low prices and defer their own
purchases until after peace is made
and take the chances of securing
then their own stocks at much high
er prices Is 1t not reasonable to be-
lieve that they will arrange 70 buy
cotton as the spinners of other ma
uons buy II. and can they not easily
arrange to have their cotton purchas-
90 stored I'm this country for their ac-
count until they can transport il ia
their-own shores? p"
Mr., Harding said tho south's vol
faro depends upon the marketing OF
cotton at fairly remunerative rates
and Southern bankers should, where
YER possible. make liberal concessions
In their usual rates on commodity
loans High interest. he pointed out,
means forced sales.
Present conditions" he said. "ful-
ly Justify low rates and Southern
bankers should be willing to forego
temporary profits for the sake of Sc
curity and solidity I'm the future. II
an sure that the Federal reserve
banks may be depended upon under
their power OF rediscounting to CO.
operate TO the fullest extent with the
banks I'm taking care OF the cotton
crop and this assurance is OF course.
not confined to cotton loans but ex-
tends to other staple commodities.
IT IL now matter of public
knowledge that the British govern
ment and It's allies have declared cot
ton an absolute contraband. BY that
IL iy understood that cotton will be
subject To seizure, even when con-
signed To neutral countries. unless
the shipment Is made I'm accordance
with the terms and limitations of the
PROCLAMATION declaring IL contraband.
As the annual takings OF American
cotton by Austria and Germany
am9unt to- about 5000. 900 bales. the
attitude OF Great Britain and her al
lies has created much uncertainty in
the cotton trade and great apprehen-
sion on the part of cotton producers
In the South"
MT Harding assumed that 22,500.-
600 bales represent the worlds normal
consumption. The visible supply
now. he said. was 1850, 900 bales.
and an estimate OF 10000 700 bales
for the present American crop could
not be regarded as too low. He took
5000 900 bales as fair estimate for
all other countries. His estimate for
the next twelve months. including
whit Is now In sight. thus totaled 22.-
100000 bales The declaration of
coHtraband against cotton he thought
would perhaps be more effective In
keeping II out of Germany thai
were the orders in council. IL the