The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1915-08-06
UNW|SE ACTION BIGGEST
CONTINGENCY OF FARMER
President of Federal Reserve
Board Gives Lucid Analysis.
HE COMPARES CONDITIONS
Only Thing That Will Stand in Way
OF Prosperity for Southern Far
mer Is Haste.


the 1915 cotton crop and conditions
year ago are contrasted in analysis
by w. p. G. Harding of the federal
reserve board in the current issue Of
the Federal Reserve Bulletin.
The position of cotton today is
much stronger, financial and other
conditions are much better than a
year ago. in Mr.. Harding's opinion,
and IL the people Of the South will
not weaken their position "by un-
wise action" they have little to fear.
THE cotton tragedy Of 1914" says
Mr.. Harding. will be succeeded in
1915 by nothing more serious than a
drama"
Mr.. Harding warns the South in it's
desire to see broad market estab-
lished for cotton to do nothing to en-
barrass President Wilson in his con-
duct Of International affairs. 1t
should be remembered" says Mr..
Hording, that the President owes
higher duty to the South. to the
whole country and to mankind. at
this juncture than the establishment
OF cotton values. Serious complica-
tions between this country and any
great foreign power certainly would
not enhance values. The President
may be trusted to do his duty as he
sees 1t. regardless of private appeals
| or public clamor. After comparing
conditions affecting the market this
year and last, Mr.. Harding says:
Under the most adverse condi-
t!ors conceivable, with demoraliza-
| tion in every money market, with
high interest rates, with emergency
currency being issued daily in large
volume. with enormous gold ship
ments abroad. with crippled shipping
, facilities. without adequate insur-
ance protection and with ocean
, freights three to five times normal
we began in August. 1914. to market
crop of nearly 100000 bales of
cotton. Financial institutions, al
ready hard pressed and fearing all
manner of unforeseen contingencies,
were unable and unwilling to make
advances on cotton. In addition to
this the Southern farmers, who have
! this year planted record-breaking
food crops, were faced with a def
cheney In home-raised foodstuffs and
were in many cases forced to sell cot
ton to pay OFF pressing indebtedness
and to secure adequate food sup
plies.
Attention is called to the fact
that the high prices for cotton now
prevailing in Germany and Russia.
about 30 cents a pound, will attract
cotton to those countries in spite of
apparently insurmountable obstacles,
just as high prices paid for cotton
abroad during the Civil War made
blockade running a steady business.
There seems to he no question that
ample funds can be obtained to
hnance in normal way much
larger volume of cotton than was
taken care of last year. and that even
if Germany and Austria Hungary
should be forced to suspend cotton
/ manufacturing entirely statistics
show that the mills OF the United
States. Great Britain, Spain, Russia,
| Italy. Japan, China and India have
spiindles sufficient 10 absorb every
bale of cotton that is likely to he
cultivated
1T should be noted that the re-
duction in American cotton acreage
this year amounts 10 more than S.
100000 acres and that Egypt and
India have also made radical reduc-
tions In cotton acreage 1t is prob
able that the worlds cotton crop
based on an average yie''1 an acre,
will be about 5,00O,O00 bales less
than last year.
Cotton, unlike grain, is commo-
My the market value of which de-
preciates i'm time of war and the
South as a producer OF that COM
F. modify has suffered The actual po-
sition of cotton, however, Is so mucn
, stronger than was the case g. year
ago and financial and other condi-
Z tiOus are so very much moro favor
nh'e that there can be no doubt that