The commonwealth. (Greenwood, Miss.) 1896-1923, 1915-07-23
SAYS EVERY COTTON BALE
GROWN WILL BE SOLD.

Washington. Jnly II. THE
tragedy of 1914 will be sue
ceeded in 1915 with nothing more
serious than a drama"
This is the prediction of w. P.
G. Harding of the Federal Re-
serve Board. Mr.. Harding is the
of the boards cotton
which is investigating
ways and means for facilitating
the general cotton situation.
The statistical position of cot
ton is stronger this year than last.
Financial and other conditions are
very much more favorable. The
present nervousness about the
market for the growing crop will
soon disappear"
These opinions are expressed in
a statement given out today by
MIR. Harding. He calls attention
to the difference in the factors
making up the situation now as
compared with last year. Here
are some of his comparisons:
THE outbreak of the war
caused a worldwide financial
crisis. Ocean transportation was
paralyzed. The bankers and mer-
chants of the United States owed
England and the Continent $780,
100000. This could not be liqui-
dated in the usual manner by ex-
porting commodities. In many
cases gold settlements were de-
manded. The excess of gold ex-
ports over imports De cember 81
1914. was $l56,2S7 254.
AT present the current indebt-
edness of the United States is
liquidated entirely. The trade
balance in our favor June 80 was
more than 81 OO,OOO,OOO The
excess of gold imports over ex-
ports from January l to June 80
are $14O,O7O,OO
Last year the maturing crops
in the South were insufficient for
home consumption.
This year there is a large crop
of corn in sight in the South.
Crops of other grains are larger.
Last year cotton and stock ex-
changes were closed in fear of an
avalanche Of European selling.
Loans were not being made on
cotton owing to the lack of ability
or i~ndisposition to advance money
on the staple. Interest rates were
abnormally high. Demand for
textiles was poor.
"This year all exchanges are ac-
tive and doing business in a nor
NAL way. Gradual absorption of
securities held in Europe at adj
vancing prices is taking place. In
terest rates are abnormally low.
Banks report large SURPRISES Of
loanable funds. Trade balance
and gold movement are in our
favor. Textile trade is fairly
good.
Last year federal reserve banks
were not organized. This year
federal reserve banks are in oper-
alton.
Last year there was much IN
employment. Railroad earnings
were decreasing rapidly. This
year labor is we'll employed. Rail-
road earnings are increasing rap
idly with prospects good for the
remainder of the year.
Last year there was an unusu-
ally large use of fertilizer. Heavy
borrowings were negotiated on
cotton crop in advance of prepar-
alton. This year a reduction of
forty per cent. was made in the
use of fertilizer. The crop is be-
ing produced at a minimum of
cost.
Last year a crop of 100000
bales was produced. This year
estimates of production vary from
100000 to 100000 bales,
with probabilities favoring the
lower figure"
Mr.. Harding predicts that the
high prices for cotton in Germany
and Russia will attract cotton to
those countries, despite apparent
ly i~nsurmountable hardships.
Every bale of cotton grown this
year will be absorbed.