The Washington times., 1915-11-11
PRICES CAUSE SURPRISE.

Tho Significance OF these reports Is
not to be overestimated. II the future
shall be marked by continuation OF
this tendency. cotton Will very soon
cease TO be the sole reliance Of South
ern agriculture. This years crop is a
good deal less than last years. and Is
moving at prices highly satisfactory to
its producers: prices. indeed. that II
they could have been anticipated a year
ago would have assured that the panic
In the cotton country could have been
avoided.
Tho Federal reserve agents for the
twelve reserve districts Of the country
have been meeting for conference with
the reserve board in Washington. can
vaesing business and financial condi-
tions with frankness and detail and
mutually Of understanding that could
not have been possible through an ex-
change Of reports. II has been the de-
tcrInincd purpose OF the reserve board
for a long time TO use every influence 10
get the country's business on con-
servative basis. because of the fear OF
consequences at the wars end.
The immense crops produced this
year, together with the generally ex-
ceiient prices at which they are selling.
constitutes a very real problem for cop
ing with which the board authorities
want the cooperation Of bankers ev-
erywhere. The danger OF an era of
speculation is regarded as very great
and IL Is In anticipation Of Just such a
condition that the board has recently
authorized the emphatic declaration
that there ought to be a gold stock OF
n billion or even two billions Of dol!
lars at the instant command OF the re-
serve banks, instead Of the $3.50. .O00. 900 OF
thereabouts that they now hold. The
board In urging that the reserve banks
need not worry about unemployment OF
at this time they may need these
much more insistently later on.
The tendency to speculation. and Ia
extravaganza, on the strength of the
big crops and general industrial &C
tivity, Is indicated in many sections
From tho northern part of the cottor
belt II Is reported that many planters
after selling enough cotton to meet i'm
the rest In expectation Of better prices
later.
Tobacco Prices Good.
The tobacco growers have good crops
and are getting good prices; retailer.
are paying their accounts to the whole
salers. and manufacturers reflect thu
improved conditions by larger activities
But the holding back OF cotton, ant
| also the greatly Increased demand fo
automobiles in the cotton country. ar,
pointed to as evidences that the lesson
OF care and thrift which were impress
ed during the cotton crisis Of last year
have not remained very long with thos'
who learned them then.
| The mid-Western corn country hal
suffered this wear because a wet season
made corn late. and the frost injured
immense amounts Of II. This soft corr
must be fed to stock. which means tina
| farmers must buv unusual numbers o
feeding stock. The smaller banks arr
much icsJ flush with cash than the cit!
institutions which are still long oil
cash. 1t is found that wheat. oats. rye
and grains generally are being hell
back by the farmers. In the belief tina
prices will be better later.
Curious Contrasts Seen.
The big banks in the cities commonl.
finance the buying OF this grain, and a
this season are commonly loaned to,
close margin because of 1t. This yea
the grain men are large depositors in
| stead Of borrowers. because they hav
been unable as yet TO set hold OF tn
| grain.
A summary OF the business report
| for the whole country. as laid befor
the reserve board. shows some cur!ou
| contrasts with conditions a year age
At that time the foodproducing State
| were on the crest OF prosperitys wave
| rushing their products to market an
crying for railroad capacity to handl
their grain. Cotton would not move a
all The Industrial sections were gen
orally in a very depressed condition.
Now. there IL better movement Q
cotton than OF grains: the cry for raj
road transportation goes up from III
industrial sections rather than the ayr
cultural: all kinds OF manufacturing ar
highly active. the automobile district
reporting top-of-capacity production a.
most Invariably. and no prospect 10
a change.
Dye Situation Bad.
The immense bulge in the iron an
steel business. in the textiles. In every
thing affected bv war orders. ha
spread to every industrial section G
the country. Cotton mills In the Sout
are as rushed with orders as are cotto
and wooden mills In the North and Eas
Tho dive situation Is very bad, goo
many orders having been refused be
csCSJs particular colors could not b
tva,r,ed out, The vast fluctuations In tn
pF4Go Of cotton in tho last year are rt
psSQhd somewhat TO have added to dc
mn Hslization In this trade.
Some mills stored immense uuantitit
of cotton around ! cents. now they al
in position to make profits on 1t; whi
concerns that lid not buy reserve stocl