The Lee County journal. (Leesburg, Ga.) 1904-19??, 1915-06-24
HOEE SMITH GIVES OUT INTERESTING
STATEMENT on COTTON SITUATION

washington, d. C.-Uniteo states
Senator Hoke Smith has given an in
terview, in which he most forcibly as
serts that the people Of the country
particularly Of the South, through their
representatives in congress and
through their influence in Washington,
must promptly and vigorously take
steps to compel the British govern
ment to call off its illegal blockade OF
neutral European ports, whereby ire
parable injury is being done to TINS
country, and particularly to the South'
through closing so many important Eu-
ropean markets to cotton, etc. Sena-
y tor Smith is convinced that we nave
Mt in our power to open the seas 70
ar non-contraband commerce by sim
pS refusing to supply England ana
heAallies with ammunition until sns
receds from her present unwarrant-
ed ana unprecedented position.
(By Senator Hoke Smith,
The public mind was justly filled
with horrr at the sinking of the L'l-
sitania, Eut we should not for this
reason forget that Great Britain and
her Allies have utterly disregarded
the rights of American citizens, have
placed a Heavy burden upon the le-
Ultimate commerce of this country,
and have mjuriously curtailed cotton
markets.
Just before the war began middling
cotton was selling at 1917 cents
pound. We normally sell abroad two
thirds of our cotton crop. For while
our entire foreign market was cut
off. Our domestic market was serious
ly impaired by the disorganized con-
dition Of our finances
Too much praise cannot be given
the administration for the manner in
which our currency laws we're amend
ed and threatened liquidation pre-
vented. Now the reserve banks are in
q position where they can issue, il
necessary from $700,OO0,0O0 to $780,
O00,O Of reserve notes fully secured,
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 Oc-
tober 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
a limited market even at that price.
Shipments of cotton to Germany,
Austria and northern Europe were pre-
vented by the constantly, circulated re-
ports that Great Britain intended to
put cotton on the contraband list, and
seize vessels carrying cotton.
October 23d the acting secretary OF
state, at the instance of a committee
of senator's, conferred with the British
ambassador, and urged the British
government to give definite state
ment with reference to cotton ship
ments. October 26th the British am
bassador presented to the state de
partment letter which contained the
following language:
'"Last night received 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 it prac-
tieable for cotton merchants to Sc
cure 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, Janu-
ary and February large quantities OF
cotton we're shipped abroad, and the
price rose from 6 cents pound to
10 cents a pound. During March mid
ding cotton sold up to 1Os cents
pound.
Thus we have 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
notice from Great Britain that the
british and French governments will
hold themselves free to detain and
take into port ships carrying goods
of presumed enemy destination, own
ership. or origin" This was followed
bv the order in council Of March 18th,
hut prior to that order the state de-
Dartment was informed by the British
onhassador that so far as cotton was