Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-06-15
Bring ENGLAND TO Terms.
That Is the Real Key to the Sltua'
tiOD.
so thinks SENATOR HOKE Smith.


sardIess of international Law and
Regardless of Effect on the Southern
Producers.
The Augusta Chronicle of last Sum
day, publishes the following exclusive
interview with Senator Hoke Smith OF
Georgia:
The public mind was justly filled
with horror at the sinking Of the Lu-
sitania. But we should not for this
reason forget that Great Britain and
her allies have utterly disregarded the
rights of American citizens, have
placed heavy burden upon the legit-
innate commerce of this country, and
have injuriously curtailed cotton mar
kets
Just before the war began middling
cotton was selling at 13 1-2 cents a
pound. We normally sell abroad two
thirds Of our cotton crop. For a while
our entire foreign market was cut off.
Our domestic market was seriously
impaired by the disorganized condi-
tion of our finances.
Too much praise cannot be given the
administration for the manner in
which our currency laws were amend
ed and threatened liquidation pre-
vented. Now the reserve banks are
in a position where they can issue, II
necessary, from $70O,000,000 to $780,
100000 Of reserve notes fully secured,
and our domestic market for cotton
is removed from strain.
Last fall exports were hampered by
the enormous insurance rates on trans
oceanic shipments. The war insurance
bureau established in the treasury de-
partment reduced war insurance rates,
which were ranging from 20 to 80 per
cent down to 2 and per cent.
Why the Price of Cotton Went Down
to Six Cents.
Still, during the latter part Of Octo-
ber the price of cotton did not rise.
The markets Of Germany, Austria and
northern Europe consume over 3,000,-
600 bales of cotton annually. This
market remained closed. Buyers Of
cotton thought it would continue clos
ed, and the lessened demand, coupled
with the threatened surplus, carried
cotton down to cents a pound, with
limited market even at that price.
Shipments of cotton to Germany,
Austria and northern Europe were
prevented by the constantly circulated
reports that Great Britain intended to
put cotton on the contraband list, and
sieze vessels carrying cotton.
October 23d the acting secretary Of
state, at the instance Of a committee
Of senators, conferred with the British
ambassador, and urged the British
government to give a definite state
ments. October 26th the British am
partment letter which contained the
following language:
Last night I received a reply from
Sir Edward Grey in which he author
ICES me to give the assurance that
cotton will not be seized. He points
out that cotton has not been put in
any of our lists Of contraband. 1t Is,
therefore, so far as Great Britain is
concerned, in the free list, and will
remain there"
Why Cotton Jumped From Six to Ten
Cents.
The communication Of this assur-
ance from Great Britain made 1t prac-
ticable for cotton merchants to secure
vessels and to finance shipments of
cotton to Germany, Austria, and to
northern Europe. This market was
thus opened. Cotton buyers realized
the broadening market for cotton.
During the months of December, jan
uary and February large quantities of
cotton were shipped abroad, and the
price rose from cents a pound to
10 cents pound. During March mid
ding cotton sold up to 10 1-2 cents
pound.
Thus we have a clear illustration of
how the closed market depressed the
price, and how the opened and broad
ened market increased the price at
which cotton sold.
What the "Orders in Council" Did to
Cotton.
On the first Of March came the no
tice from Great Britain that the Brit
ish and French governments will hold
themselves free to detain and take in
to port ships carrying goods Of pre-
sumed enemy destination, ownership,
or origin" This was followed by the
order in council Of March 18th, but
prior to that order the state depart
ment was informed by the British am
bassador that so far as cotton was con-
cerned shipments made during the
Of March would not be subject
to the order in council, but would be
covered by a different rule. That rule
provided 1.-The cotton for which con-
tracts of sale and freight engagements
already had been made before March
I'd, is to be allowed free transit or
bought at contract price If stopped,
provided the ship sails not later than
March 31st."
During February 100000 bales of
cotton were shipped abroad. During
March 1,208,500 bales of cotton left
our ports. But Great Britain allowed
no cotton shipped in March to go free
to Holland, Denmark, or Sweden. The
vessels with cargoes Of cotton were
seized, and the cotton shipped to Rot
terdam, Gothenburg and other Euro
pean ports was carried into English
ports. Over 100000 bales Of this cot
ton destined to northern Europe were
sold by Great Britain in England dur
ing April and May.
A Drop From 435,o37 Bales to 1890
Bales In One Month.
The table Of expectation as kept by
the department of commerce classifies
France. Germany, Italy, Russia in Eu-
rope. Spain and the United Kingdom
separately. The figures then show for
the balance of Europe as "Other Eu
rope" They show that in February
we exported to "Other Europe" and
Germany received $4,000 bales. In
April we exported to Germany no cot
ton ana 10 OtneT EUROPE only fo,oUU
bales, thus showing the tremendous
Of expectations Of cotton to
the neutral ports of northern Europe,
caused by the illegal blockade. But
for the blockade, Germany, Austria
and northern Europe would have pur-
chased before August 1st, 100000
additional bales Of last years crop.
A Three Million Bale Market Cut Of
For This Years Crop.
Before these seizures by Great Brit
ain, the price of cotton was steadily
rising. After Great Britain cut off
our German. Austrian and northern
European market. the price Of cotton
fell in England a cent and a half
pound. Great Britain stopped the rise
and caused the fall in the price of cot
ton during the past two months.
If the present illegal blockade by
Great Britain of neutral ports of
northern Europe is permitted to re-
main of force. not only will we lose
the market now for part of last years
crop, but a market will be cut off for
100000 bales of this years crop.
On March 30th the state depart
ment of our government wrote Great
Britain protesting against the notice
from Great Britain of March 1st, and
the order in council Of March 18th.
This order in council was declaration
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