The Barre daily times. (Barre, Vt.) 1897-1959, 1915-08-28
COTTON SITUATION
is NOT DESPERATE
w. p. G. Harding Predicts That There
Will BE International Competition
for American Crop Despite
Placing II on Contraband
Iiet

Birmingham, Ala, Aug. 2s.--W. p. G
Harding OF the federal reserve board tolC
the Alabama Merchants association hor,
that the placing of cotton on the contra.
band list by the allies did not create q
desperate situation but rather one call.
ing for intelligent leadership. He urged
southern bankers to make concessions To
finance the crop and predicted there
would be international competition for
the American crop despite the fact that
| it was contraband. Mr.. Harding han
died, for the reserve board, the arrange
ments for the $l00,000,000 cotton loan
fund. He explained to the Alabama iner-
chants, however, that he was not speak
ing for the federal board, but was Civ
ing his personal views.
Germany" said MIR. Harding, "is as
anxiou4 to have cotton as the allies are
to prevent her. 1t is not inconceivable
that there may be evidences before very
long of international competition for pos
session of the South's great staple. 1t
Is at least possibility that cotton will
be purchased in large quantities for for
eign account and stored in southern ware
houses, to be shipped out as needed and
as opportunities for shipment arise.
mo one has ever accused the Germans
OF being lacking in far sightedness. They
are already looking forward to what will
happen when peace is restored and that
they will make a supreme effort to re-
cover their lost trade with other nations
cannot be doubted. Is it reasonable to
believe that they would look with com
plaeency 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 better prices? Is it not rea-
sonable to believe that they will arrange
to buy cotton as the spinners of other
nations buy it and can they not easily
arrange to have their cotton stored in
this country for their account until they
can transport it to their own shores?"
Mr.. Harding said the South's welfare
depends upon the marketing of cotton at
fairly remunerative rates and southern
bankers should, wherever possible, make
liberal concessions in their usual rates
on commodity loans. High interest, be
pointed out, means forced sales.
Present conditions" he said "fully
Justify low rates and southern bankers
should be willing to forego temporary
profits for the sake of security and solid
" in the future. l am sure that the
federal reserve banks may be depended
upon under their power of rediscounting
n 70 9n he f,yIfacf I
he banks in taking care of the cotton
'rop and this assurance is, of course, not
confined to cotton loans, but extends to
'ther staple commodities.
ut is now matter of public knowl.
,dge that the British government and
Is allies have declared cotton an abso-
ute contraband. BY that it is under
TODD that cotton will be subject to seiz-
ire, even when consigned to neutral
ountries, unless the shipment is made
n accordance with the terms and limita-
ions of the proclamation declaring it
ontra band. As the annual takings of
american cotton by Austria and Ger
many amount TO about 100000 bales,
he attitude of Great Britain and her al
les has created much uncertainty in the {
otton trade and great apprehension on
he part of cotton producers in the
outh."
Mr.. Harding assumed that % 500 900 ,
sles represent the worlds normal CON !
nmption. The visible supply now, he c
aid, was 4,250,O00 bales and an estimate
I l2,000,OOO bales for the present Amer.
AN crop could not be regarded as too a
wv. He took 6.0O0.O 900 bales as a fair h
stimste for all other countries. His es- "
mate for the next 10 months, including Ii
hat is now in sight, thus totalled % q
10000 bales. The declaration of CON
-aband against cotton he thought would /