The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1916-03-15
POINTS OUT 0NE.cROlp PERIL.
HARDING SOUNDS WARNING TO
POTENTIAL COTTONTOTS.
Reserve Board Member Tells How
Excessive Planting Will Dcprcss
Cotton Markct-Pricc Depends
Much nm Acrcarn


Cotton Markct-Pricc Depends
Much ON Acreage.
Birmingham, Ala, March TO-
Southern farmers were warned not to
put all their eggs in one basket by
relying on cotton as their only crop
In a speech tonight by w. p. G. Hard
ing of the federal reserve board be-
fore the Birmingham Chamber of
Commerce.
Il am told" said Mr.. Harding,
that there are farmers in Alabama
and perhaps in all Southern States
who have never grown a stalk of corn.
Let the farmers realize and 1 urge
upon merchants and bankers the i'm
portance of persuading them that an
increased acreage in cotton will be
looked upon as an argument in favor
Of lower prices for the remainder of
the crop now being held, although it
Is by no means certain that a large
acreage would yield larger crop than
a smaller and better cultivated area.
Let us suppose things turn out this
year as some optimists predict. Sup.
pose peace should be restored and
there spring up greatly increased
demand for cotton. Under such con-
ditions q large crop would of course
sell FOR a great deal of money. but
with the experience of 1910 and 1911
before us, Is there any reason to
doubt that moderate crop would
sell for still more? On the other
hand, suppose the war continues;
suppose unhappily this country should
become Involved; and remember that
In times OF stress when 1t comes to q
choice between something to eat and
something to wear. food must be
provided at any cost while new
clothes can wait-then ask, would
we not be far better off with a mod
crate supply Of cotton and an abund.
ance Of food supplies?
why scatter high priced fertilizer
over large field when it would be
more effective concentrated on
smaller? These matters must be de-
termined now. A month hence will
be too late. Let the farmers, the
merchants and the bankers of the
South take counsel together and let
the newspapers, and those published
at the county seats particularly, ad-
vocate in every issue for the next six
weeks. and with all their force and
power. the doctrine OF diversifcation.
and let them point out the dangers of
the one crop system"
Mr.. Harding said that if the war
continues six months longer the pur-
chasing power of Europe will be Sc
riously impaired and that prices in
the countries at war already have
enormously advanced. He declared
that the cotton exchanges are not
eleemosynary institutions but are
operated by those who desire to
gain. Market opinions. he said, vary
with new conditions and the fact is
realized that they depend primarily
upon the supply. For the next three
months, at least, Mr.. Harding said,
the estimates of supply will be based
upon the new crop acreage.
What this acreage will be-" he
said, lin America depends upon the
farmers of the South Should they
decide during the next few weeks to
produce their foodstuffs at home and
to plant cotton as money crop,
their position will be secure, but, if,
disregarding all warnings and portents
of the times, they decide upon a
policy Of all cotton, they will be TAX
Ing tremendous risk which no pru-
dent business man would care to as
sumo"
Mr.. Harding said the ability and
disposition Of the banks Of the United
States to take care Of the legitimate
wants Of their customers as we'll as
to carry well secured loans for others
have never been greater than at pres
ent. All paper under discount with
federal reserve banks March 6, Mr..
Harding said. amounted to $51, 900, 900
against total deposits in these insti-
tutions of S454.7G1, 900.
I'm all sections OF the country" he
continued, first class commercial
paper is sought for at abnormally low
rates and l may say that for several
months past the chief concern of tho
federal reserve board over the none
tary situation in this country for the
immediate future has been that the
unusually low rates prevailing in
de- IL