New-York tribune., 1918-05-26

suit IL nllatlon proceeds uncnecked,
we earnestly recommend the read
ing of an article presented on the
preceding page. 1t is written by
one of the leading bankers Of the
Pacific Coast, banker who sees
clearly the menace Of the course
we are pursuing. "The whole
scheme, as it is now developing"
says Mr.. Rutter, represents a SIM
pie plan Of financing the war by
inflated money, wherein the gov
ernment will go in the markets with
the money raised largely from the
sale of bonds, and will undertake
to buy commodities by bidding for
them on unlimited credit, against
competitors whose money power is
steadily increased with the increas-
ing money stock Of the nation"
And to avert this danger, which the
government ignores, Mr.. Rutter as
serts ait is up to the bankers of
America to minimize the peril, first,
by refusing every credit that does
not contribute directly to the war;
second, by urging the Federal Re-
serve Board to raise its rediscount
rates so as to check the initiation Of
currency that is now surging over
the country, and third, to use every
influence in procuring the utmost
advance in income taxes that Con-
gress and the people can be per-
suaded to adopt. If these remedies
are not applied, and applied vigor-
ously, the socialistic movement that
has already developed to an unpre-
cedented degree throughout the
world will prove almost irresistible
n overthrowing our present sys-
lem of government and economics
in the readjustment that will take
place at the conclusion Of the war"
A few weeks ago, when cotton
was selling at the highest price
touched since civil war days, and
there was talk of fixing the price of
the staple, the South protested bit
terly. Resolutions were passed de-
nouncing the proposal as an attempt
to impoverish the land of cotton.
A Southern Senator announced that
he would oppose such action to the
bitter end, even to insisting that, if
cotton prices were fixed, so must
the prices for all other products, re-
gardless Of the necessity for such
action. And so there was no inter
ference with cotton. 1t remained
the commodity, politically immune.
But little time and a few cents a
pound make difference, and now
we have the absurd spectacle of
some Southern interests who for
rerly insisted that the government
aust keep its hands off urging the
king of minimum price-not, of
course, at market quotations, but
at 80 cents pound. Presently, no
doubt, the matter will be agitated
in Washington, with what result no
enc can foretell, though the South
usually gets what it asks for.
Naturally, the New York "gam-
blers" are to blame for the slump
in cotton prices to point where
they are only 800 per cent above
the low level Of 1914; weather, and
crop prospects, and the shortage of
shipping which prevents transporta-
ton of cotton to Europe are unim-
portant factors. They must be, for
the Southern papers which are dis
cussing the question, ignore them
and blame it all on a conspiracy to
strike a blow "at the mainstay Of
our prosperity" Here is an exam
pie Of the sort Of stuff that is being
printed in the cotton belt, from
the Anderson, S. c., Tribune:
1t becomes each day more evident
snat there is conspiracy among
the gamblers Of the New York Cot
ton Exchange to confiscate the pres
ent cotton crop as they did in 1915.
The Democratic County Conven-
tion in Marlboro calls attention to
II and requests that the Federal Gov
ernmcnt stabilize prices by estab-
nshing a minimum price of 80 cents
pound. No one would be per-
mitted to offer futures Of from 30
cents down. Under the present con-
ditions few gamblers can get to-
gether and by fake sales Of trem.n-
dous quantities Of futures. work tb.
price down to whatever they please.
rms would not amount to anything.
II bankers who hold cotton losr.
were not deceived by these Sct;t;ou,
sales. Money is the most timid thine
on the earth. and the moment thew
see July quoted from the blackboard
in the Exchange below 25 cents thew
begin to call loans made at 20 cent.
and force cotton on the market.
This is nothing but highway rob-
berry. Cotton goods are selling ON
the average of one dollar a pound
for new cotton, and cotton is worth
86 cents now as much as three weeks