The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-10-27

wealth and economic prestige. Thus
one OF Americas prominent bankers,
IN discussing TINS question this week,
said: Right now we are In a period OF
expansion but we have not by any
means reached the point OF dangerous
initiation. The bank position in this
country never was Sounder, but the in
tlux OF gold, which is at rate that
our country mas never known before,
is the working basis tor an unex-
ampled basis OF credit. Bank credits
turn into deposits, and we have added
about one-third to our credit structure
since the outbreak of the war. Gold
still in the banks, State and Ma
tional, one thousand million dollars
excess reserve, and that will be the
basis of additional credit. But event
ually we will have to call on this gold
base or reserve, and when the gold
begins to go out the credit structure
that was built on it must be brought
down in the ratio of about ten to one.
Now We can meet the demand for
gold with goods if we are industrially
efficient and can compete. This is why
everybody is interested in our foreign
trade, whether he has any direct in
terest in it or not. We will be the
lowest money market in the world.
Hence, if we are the lowest money
market, the flow of credit and money
will be out, and it is up to us to be
very careful. No matter how careful
we may be, we are going on with
this movement of expansion. l see
no present limit to our activities ex-
cept the limit of man and the limit
on the work we can do, but we have
some serious questions ahead"
Cotton.
Cotton futures" and spot cotton
sold on the New York and New
Orleans Exchanges this week at the
highest price since the Civil War.
Only two short years ago the cotton
situation threatened finacial
cataclysm in our southen territory,
cotton-growers feared that they would
not secure the cost of actual pro-
duction for their excess supply, and
only the prompt and energetic action
of loyal and patriotic bankers and
business men saved the day for the
south. 1t is not to be denied that
several well-meaning government otfi-
Gals were anxious to try out one or
more unscientific plans which were
productive of no positive results.
In the summer of 1914, or just
prior to the time the great European
war broke out, cotton commanded a
price of IL to Is cents in the open
market. When war was declared, and
with it, general blockade of Euro.
pean ports, prices broke to six cents
over night, and the south faced ruin.
To make matters worst the 1914 crop
was record one, total of 10, l34, 900
bales. 1t was at this time that the
BANKERS stepped into the breach and
cotton and market it slowly, promising
finacial assistance to that end. The
effect was almost immediate. Prices
began to stiffen and as time went on
it was found that the world needed the
south's cotton. In the spring of 1915
cotton was selling at nine cents a
pound
The next step in the process was the
advocacy of the raising of food crops
and an abandonment of the one-crop
system. Southern farmers were urged
to raise their own feed and food
stuffs instead of importing them at
high prices. AS result of this policy
the south raised large proportion of
its own foodstuffs and reduced its cot
ton acreage. A committee known as
the Cotton States Bankers associa-
ton from the ten cotton-producing
states continued campaign of educa-
ton along these lines, adding their
practical cooperation by financing the
slowly marketing policy of the cotton
crop. Eighteen months of this effort
restored the l2-cent price for cotton in
the early part of this year, and since
that time the worldwide demand for
the southern staple, and the many
new uses to which it has been de-
voted, have been responsible for an
other so per cent increase in market
price.