The Washington herald., 1919-05-23
Financial News---New York and Local Stocks
HOLLAND SEES
COTTON BOOM
Formation Of Mammoth Ex-
port Association in South
Inspires Prediction.


Glass: the governor of the New York
Federal Reserve Bank, Benjamin
Strong. r.. and others who have di-
rected the campaign for the selling
of Victory Notes, have urged all
who buy these securities or who
earlier bought liberty loan bonds
not to part with them unless neces-
sity compels II. But there would
appear to be no objections to the
proposition which is now under COLI
sideration by leaders in the cotton
producing and export industry of
the South to the utilization OF lib
erty bonds or Victory notes in pay
ment for the capital stock of a
contemplated organization which
sees great opportunity for econom-
ical and profitable handling OF cot
ton for export. This organization
is in line with the proposition in
Volving the establishment of a sreet
bank in the Missouri Valley. the
stockholders in which are to be
various banks in the valley and
whose purpose IL is to facilitate A.
nancing OF export as well as domes-
tic trade which originates or ter
inmates in the Mississippi Valley.
These two propositions demon
strate the awakening to commercial
and other opportunities which Is
row characterizing the entire Mis-
sissippi Valley. New Orleans Is
probably the central point since
there exists a commodious harbor.
whence go and to which come vessels
l..
trade. In the North and East there
is little understanding of the magni-
tude of developments which are un-
der way in New Orleans and its vi
cinity for the purpose of facilitating
commerce For instance. at New Or
leans has been established one Of the
largest American grain elevators. and
it Is a visible demonstration of the
increasing efficiency of American ter
minal facilities.
Prince Cotton.
Although it may not be now strictly
accurate to designate cotton as king
among American agricultural products,
nevertheless it is among the princes,
standing. possibly. in money value.
to wheat and corn Industrial leaders
OF the South have for some years
been confident that great economics
could be secured in the handling of
export cotton. not necessarily result
ing in the increase of the price to
abnormal figures. but certain to Sc
cure for the planters and exporters a
reasonable return.
Therefore they have tentatively or
Eanized cotton export association
whose capital is to be 800. 900. 900. 1t is
really to be a pool of the exporters
~ - hWrN . fc r1rNf
such a pool as would in any way vio-
late the Federal statutes. because, un-
der the new Law. organizations of that
kind are permitted. IL their purpose
is to facilitate foreign trade.
II the cotton industrial leaders of
the South and the cotton producers
approve of this plan il will be for
mally organized. and it should serve
greatly to improve export facilities
of cotton The promoters of this or
ganization announce that the capital
stock may be paid for with liberty
bonds In this way convenient pay
ments can be secured. the bonds not
thrown upon the public market. and
guarantee of the government fur
nshes there is also the additional
security which the stock Of the cor
poration will furnish.
The world would wonder il it were
possible to give the people detailed
information of the magnitude of the
new uses to which cotton can now
be put No longer Is it almost ex-
clusively employed in making cotton
goods 1t enters as raw material into
many kinds OF manufactures. The
worlds demand for cotton is certain
greatly to increase and Immediately
n
factnTers OF France as well as Great
Britain now stand in need Of enor-
nous quantities.
What the Influenza Cost.
We are beginning to get detailed
information which tells the money
cost or at least a part Of the cost en-
tailed by the epidemic of influenza in
1918 These figures do not refer TO
the loss of service occasioned by death
Of those who were victims of the epi-
demic. The figures do not compute
the indirect or incidental losses. But
they do show the actual cost to the
insurance companies of the entire
United States occasioned by the
mortality of the influenza
Authentic statistics have Just been
received which show that the inf1u-
enza cost the insurance companjes of
the United States eighty million dol
lars because as much as that was
paid for death claims. mortality hav-
ing been caused by influenza. Some
Of the smaller companies found the
burden almost too heavy to bear and
state legislatures or insurance super-
intendents are seeking some measure
of relief for them. On the other hand
the insurance companies of the United
States made a new record in 1915.
That may have been partly due to
the war. But it was chiefly due tn
the interest and confidence which
American people have in these cor
porations. The American Insurance
companies in 1915 Joined the billion
dollar rank Insurance. like some
other things. is now thought of in
terms Of billions.
The total premiums paid in 1918
were in excess of q billion dollars.
Four billions. in the aggregate,
came to these companies in the
form OF new insurance in 1878.
and these figures do not include
fhc new Insurance which came to
the industrial companies. That in
the aggregate was in excess Of a
billion dollars. Again we read in
terms of billions because the insur-
ance authorities report that the as
sets of the American insurance COM
panies are considerably in excess of
six billion dollars.
An Evidence of Thrift.
4 few days ago the president of
one of the largest savings banks in
New York City was asked II the de-
-arture of so n1anv Thousand work