The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-08-07
THE COTTON SITUATION,
FEDERAL RESERVE BOARD
MEMBER DISCUSSES SITUA-
TION.
In Order tn Sec Broad Market Estab-
lishcd South Must Not Embarrass
President Wilson.

| washington, Aug, 4.-ConditiOnS
that confront the South i'm handling
the 1915 cotton crop and the condi-
tions year ago are contrasted by
w. L. G.. Harding of the federal re-
serve board I'm the current issue OF the
federal reserve bulletin.
The position of cotton today is
much stronger and 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 unwise
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-
iished for cotton to do nothing to en-
oarrass President Wilson in his con-
duct of international affairs.
1T should be remembered" says
Mr.. Harding, that the president owes
a higher duty To the South, to the
whole country and to mankind at
this juncture than the establishment
OF cotton values. Serious complica-
tons between this country and any
great foreign power certainly would
not enhance cotton values"
After comparing conditi ms affect
ing the market this year and last, Mr..
Harding says:
Under the most adverse conditions
conceivable, with decentralization in
every money market, with high in
terest rates. with emergency currency
being issued daily i'm large volume,
with enormous gold shipments abroad,
with crippled shipping facilities, with
out adequate insurance protection
and with ocean freights three to five
times normal. we began in August,
1914, to market a crop of nearly IT,
100000 bales Of cotton. Financial in
stitutions, already hard pressed, were
unable and unwilling to make ad-
vances on cotton. In addition to this,
the Southern farmers. who have this
year planted record breaking food
crops were faced with a deficiency
In home-raised foodstuffs and were
in many cases forced to soil cotton to
pay om pressing lndettcArcee grH -
secure adequate food supple
Attention is called to the fact that
the hish prices for cotton now pre-
vailiug IN Germany and Russia, about
80 cents a pound. will attract cotton
TO those countries In spite Of appar-
emily insurmountable obstacles, just
as high prices paid for cotton abroad
during the War Between the Sections
made blockade running a steady bus
mess.
There seems to be no question that
ample funds can be obtained to
finance In a normal way a much
larger volume of cotton than was
aiken care of last year. and that even
Il Germany and Austria Hungary
should be forced to suspend cotton
manufactures entirely. Statistics
show that the mills of the United
States, Great Britain, Spain. Russia,
Italy, Japan. China and India have
spindles sufficient 10 absorb every bale
of cotton that is likely to be culti-
waited.
1T should be noted that the reduc-
tion I'm American cotton acreage this
year amounts to more than 5000, 900
acres and that Egypt and India have
also made radical reductions in cotton
acreage. 1t is probable that the
worlds cotton crop. based on an av-
eraSe yield an acre. will be about S.
100000 bales less than last year.
Cotton. unlike grain. is a commod-
ity the market value OF which depre-
ciates I'm time of war, and the South
as a producer of that commodity has
suffered. The actual position OF cot
ton. however, is so much stronger
than was the case a year ago, the
| financial and other conditions are go
very much more favorable that there
can be no doubt that If the South will
Keep cool and will refrain from mere
ly weakening its own position by un-
wise action, the present nervousness
regarding the market for the grow
ing crop will soon disappear.
Even in the face of all adverse
conditions during the last Il months.
the average price of cotton has been
about hat might have been expect
ed for a 1900. 600 bale crop had
there been no war. and there is every
reason to believe that the average
| price of cotton DURING IN poxt 4