Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-09-21
HARDING ON COTTON
Discussion Of Responsibility Devolvins
on Southern Banks.

Discussion OF Responsibility Devolving
on Southern Banks
This week when w. P. G. Harding.
a member Of the Federal reserve
board, speaks at Raleigh he will have
something interesting to say about
cotton. Being a southern banker, Mr..
Harding knows much about the handl-
ing Of cotton.
mot since the days Of the Civil
war;" said Mr. Harding, discussing the
situation in The south, has cotton oc-
cupied so prominent a place in inter-
national affairs as at present. By vir-
tue Of its use in the manufacture Of
explosives it's possession has become a
necessity to the nations at war. Great
Britain and her Allies, having prac-
teal control of ocean transportation,
announced, some months ago, their
purpose Of preventing shipments Of
cotton reaching Germany and Austria,
either directly or through neutral
countries. The orders-in-council
which became effective last February,
nave aroused a great deal Of protest
in this country. the position being taken
that no belligerent had the right to in
terfere with the shipment Of non-con-
traband goods from a neutral country
to another neutral country. While
these orders-in-council have been the
source Of much irritation, 1t Is claimed
that they have not been effective in
accomplishing their object, and the
marked increase in exports Of cotton
from his country to Holland and
Sweden, as we'll as TO- Italy, up to the
time that she also became involved In
the war, would indicate that Germany
has been receiving practically her
usual amount of cotton through neu-
trail countries
Mr.. Harding will talk Of the con-
ditions abroad as they affect cotton.
and other important American crops,
at Raleigh. He IS very optimistic.
Great Opportunity.
1.-The bankers and merchants OF the
SOUTH" Mr.. Harding says, have at
this time a great opportunity as we'll
as a great responsibility. They are
in close and intimate contact with the
products throughout the cotton belt,
and are in the best position to advise
and assist them in taking the steps
necessary to protect their interests
which are also the interests Of the
whole south. For the second time
within recent years we have seen a
large crop sell fcT far less money
in the aggregate than a moderate crop
brought the preceding year. They
have an opportunity Of conserving the
values Of the south's greatest single
asset-its cotton crop-and upon the
bankers and merchants Of the south
rests the responsibility Of the wealth
or woe of a great agricultural section
during the next IL months and per-
haps for years.
Leading financiers Of the country,
in commenting upon present condi-
lions, which are due in part to the
European war, freely express the fear
that the sudden prosperity that has
developed in some sections and along
certain lines Of industry, will be fol-
lowed by a period of wild speculation
and imitation.
Reserves Large.
1.-THE banking reserves Of this coun-
try are now very large, being consid-
erably more than 81, 1000, 0OO, 900 in ex-
cess Of legal requirements. The gold
holdings Of the United States, over
81, 600, 900, 900, are larger than those Of
any other two countries combined. Our
trade balances are piling up at an I'M
precedented rate and will probably
amount to 81, 900, 600. 900 during the last
six months Of 1915. Rates for the
best commercial paper are very low,
4 per cent or less, and the southern
banks, should they be able to collect
within the next 60 days, the amounts
which they have out directly or indi-
rectly on cotton, will be at an absolute
loss to find a safe and profitable in
vestment for their funds.
What better security, therefore,
could a southern bank ask than the
obligation Of a merchant Dr. farmer
which he has been carrying on a crop
not yet in existence-what better or
more liquid investment, I say, could a
southern banker find than to carry this
same obligation along for a few months
If necessary, secured by the actual
cotton, properly warehoused and in
sured, and certain of a market? Such
general action on the part Of southern
banks would greatly facilitate the
orderly and natural marketing Of the
crop and would, in a great degree,
relieve what Is called distress cot
ton by which term forced sales Of
cotton, regardless Of market condi-
tions, have come to be known.
Why Is it c~ontraband7
I'VE should consider the object Of
the British government in issuing its
orders-in-council and in it's recent dec
laration placing cotton On the CONTRA
band list" Mr.. Harding asserted.
why is that government engaged
in the most gigantic war Of all his
tory with perhaps it's very existence
at stake, so anxious to prevent cotton
from reaching the territory Of its enc
mics? Some have said that it is Tor
commercial reasons, that the govern
ment is actuated by a desire to depress
the value Of cotton in order that Brit
ish spinners may obtain their stocks at
a low cost. This theory does not stand
in the cold light Of eason
Modern science within recent years