The Birmingham age-herald., 1916-04-11
Heavy Decline in Prices Following the Outbreak of War Entirely Fault of South
DESPITE BACKSET CROP WAS MARKETED
 AT A FAIR PROFIT
Business Men and Capital ists Show Constructive Faith in the Future and People Are Cheerful

The day of sacrificing cotton is over, according to w. W. Morrison of New Orleans. of the firm of Herman & Wolf, members of the New Orleans cot ton exchange, who was in Birming ham yesterday. MT. Morrison has made a tour of the. entire south for his firm and has compiled information regard ing the economic. financial and busi- ness conditions in the cotton belt, and the outlook for the crop and it's dis position during the coming season. As a writer on the economic side of the cotton question MT. Morrison is rec ognized authority.
 MT. Morrison declares that the heavy decline in the price of cotton immediately following the war was caused by the failure of the south to realize it's own resources for handling the situation. He states that the crop was eventually marketed. largely at fairly profitable figure, through the surplus earnings of the south. The aid from the north was of negligible value. and even the support of the federal reserve board was valuable only from the SLdHupoiIt ol Hlordl SuPpoIl anu encouragement
 SUFFICIENT WAREHOUSES
 The south will never sacrifice an- other crop, in the opinion of MT. Nor rison, due to the ability of this sec tion to finance it and the further fact that there are now sufficient ware houses to hold the cotton as long as desired Tho d9V has almost arrived when cotton is to be really and truly surplus crop, which will mean the beginning of the financial independ- ence of this section.
 "Conditions are getting better every day." said MT. Morrison. "The great body of the people are normally cheer full and are going about their affairs capital, too, are showing everywhere faith in the future that Is wholly constructive. Big enterprises in busi- ness in building and otherwise are starting up in many sections of the country that require a lot of money and lot of time before the returns will begin to come in. We may be sure from the character of the men be- hind them that they were thoroughly digested and their prospective profits practically assured or they would never have been undertaken or financed. For money is still somewhat overcautious and hard and wants to know. Hence these undertak- ings bespeak a potential confidence in the future. From what I have seen, l feel sure that it is fully warranted
 REACTION REMARKABLE
 .7rhis reaction has been very re- markable, indeed, when we consider how vitally the war affected cotton and how vital1y cotton concerns the credit of the cotton country. The eco homie strength of the south was cer- tainly put to a very severe test want to say in this connection, as I have said many times before. since it has a direct bearing on the financial re- sources of the south that the decline in the price of cotton which imm mediate- ly followed the breaking out of the war was not because the south did not have the means to take care of the cotton, but because the business men of the country were temporarily be- wildered by the sudden breaking out of the war as the business men of other parts of the country were bewildered. They quickly regained their equipoise however. and the decline was promptly stopped and prices were carried up to where a good part of the great crop of 1914 was sold at fair profit. This was practically achieved alone through the surplus earnings of the south. Outside help amounted to but little, even the aid rendered by the fed eral reserve fund was negligible.
 'As to the coming crop, the prepara- tion has been excellent all over the belt. Everywhere are to be seen the evidences of advanced methods of farming. The contrast with the methods of only few years ago is very marked It means in the final analysis that we can reasonably expect increasing returns from the same area under the same given conditions, and hence this scientific farming becomes an important factor in the supply. This preparation means that planting will likely end at normal date. The weather has been quite cool for the last few days, it is true, but there is still big margin for the crop to get a normal start. The
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