Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-26
TELLS HOW SOUTH
CAN HANDLE COTTON
Placing of the Staple on Con-
traband List Discussed by
W. P. G. Harding.
CALLS UPON BANKERS
TO AID IN MARKETING
Reads Letter From President Wilson
Suggesting Concessions to Grow
ers by Financiers.


P. G. Harding of the federal reserve
board last night told the Alabama Mer-
chants Association here that the plac-
! ing of cotton on the contraband list by
the allies did not create desperate
| situation, but rather one calling for in
telligent leadership. He urged southern
| bankers to make concessions to finance
| the crop and predicted there would be
| international competition for the Amer
lean staple, despite the fact that it was
contraband. Mr. Harding handled. for
the reserve board, the arrangements
for the hundred million dollar cotton
! loan fund. He explained to the Ala
bama merchants. however, that he was
not speaking for the federal board, but
was giving his personal views.
Reads Letter From President.
During his speech Mr.. Harding read
the following letter he had received
from President Wilson:
My Dear Mr.. Harding: Thank you
sincerely for your letter of August 23.
1t gives me just the information 1 de-
sired What interests me most is this:
| 1t is evident from what you tell me
| that the country banks with whom the
| farmer and other producers directly
!
per cent, and that the question whether
the benefit of this advantageous rate
is to be extended to the farmer is in
their hands.
| 1T is inconceivable to me that those
who are responsible for dealing direct
| ly with the producers of the country
should be willing to jeopardize the
prosperity of the country itself by re-
| beneficial rates now obtainable for
money loans. l think that We can con-
| fdently expect that the banks in the
cotton states, and in the agricultural
regions generally, will content them
selves with a rate not more than / or
= per cent above the rate which they
| themselves pay.
Il hope that the facts which you
have stated to me will become gener-.
| ally known among the producers of
! the country, SO that they may feel
themselves free to exact of the banks
with which they deal what they I'M
doubtedly have a right to expect. Cor
daily and sincerely yours,
| WOODROW WILSON"
! Sure Market for Product.
germany" said Mr.. Harding. lis as
| anxious 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 possession of the south's great sta
pie. 1t is at least a possibility that
| cotton will be purchased in large guam
| titles for foreign account and stored i'll
| southern warehouses, to be shipped out
| as needed and as opportunities for
| shipment arise.
| mo one has ever accused the Ger
mans of being lacking in farsighted-
| ness. They are already looking for
ward to what will happen when peace
| is restored and that they will make
| supreme effort to recover their lost
| trade with other nations cannot be
doubted. Is it reasonable to believe
! that they would look with complacency
upon the absolute control of the cot
ton market by the mills of England
| and America, permitting them to secure
their supplies of cotton at very low
| prices and defer their own stocks at
much higher prices? Is it not reason
! BILE 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 pur-
| chases stored in this country for their
account until they can transport it to
| their own shOres?"
| Welfare Depends on Marketing.