Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1919-08-22
GEkMANS ABLE
TO BUY COTTON
ONLY ON CREDIT

NEW YORK, August 22.-The fol-
lowing analysis of the cotton export
factors is presented by N. L. Carpen-
ter & Co., brokers:
When Peace became fact, Eu-
rope was able to take our cotton.
Everybody was so happy that every
body wanted to 60 to work and re-
construct the world. But in the long
drawn-out months of the armlstlce,
all this has changed.
The dream has passed away.
In the new awakening we discover
unheard of difficulties in the way of
resuming old time foreign connec-
tons.
The decline in Sterling, Francs and
Lire is only one feature, understood
mostly by the exporters. Translated
into everyday language, the Exchange
situation today means that the Europ-
can spinner who buys bale of cot
ton on this side to ship across the
ocean, does not pay only 80 cents
pound for it. He pays whole lot
more in his money and that is the
only kind of money he can figure
with. For instance, at present Ex-
change rates, British buyers pay
SO IL cents aboard ship, while the
French spinner starts in with cost
in dollar currency of nearly so cents
pound and Italy pays at the rate of
almost so cents pound, on this
/ side.
Everybody knows that the exist
ing conditions are only the after
math of war and temporary, but we
must face the facts as they exist and
remember that we live in the present.
The outstanding fact is that the for
eign mills, no matter what their bust
ness opportunities may be in the fu-
ture, will not buy today pound of
cotton more than they need for i'm
mediate use.
This, in few words, means that
Europe, as a whole, intends to let us
carry the load of our new crop and
peddle it out to them as they can pay
for it.
But now along comes Germany.
! the main hope of the cotton grower.
Deprived of all supply for fully three
wears, Germany makes no pretense
that she does not need cotton and
needs it as quickly as she can get it.
But she insists on buying it on n
! twelve-months credit. The latest Of
hclal announcement, in plain Ian
guage means that no hard money will
be allowed to pass out of Germany
for year, and it is clear notice that
the merchants of the world who ex-
lpect to sell her must meet these termsI
If times were normal, and govern
ments stable, there would be little
difficulty in meeting even such terms.
Enterprising merchants exist in eve
cry generation and have hazarded
their produce throughout the seven
seas. But who can tell what. forms
Of government may exist in Europe
a year from today or what security
there may be for capital represented
by the physical transfer of cotton of
acknowledged value?
That is the greatest stumbling
block to resumption of foreign trade
And that is the problem which the
cotton producer, merchant, exporter
and banker must face and conquer
Nobody eats cotton except cattle.
Cotton is made to sell not to keep
Europe wants our cotton.
We want them to have it.
Far-seeing inanceiers months age
pointed out the only way this crop
can be exported.
If the producer, merchant and ex-
porter wish to translate this crop
from plant product into negotiable
values, they must get together and
let Europe have it on a time basis,
with proper banking safeguards for
security.
The need is great on both sides.
The remedy is simple.
If the remedy is not applied, the
penalty will be a loss to producers
mounting into the hundreds of mil
lions of dollars.