The Birmingham age-herald., 1919-06-18
A PROFITABLE BUSINESS

The purchaSe and sale Of cotton bills,
 If wisely carried on, is always profit able to the bank which does it. and also fairly satisfactory to the cotton men who draw the bills. Now with that fact in mind, and with the presumed probability that Washington can gain a considera ble share of this business and then transfer it to Boston, the inference is that this can be secured at the expense of New York. At all events, the undertaking shows how eagerly and actively Boston Is awakening to the possibility of shar- ing in some of the momentous opportu mites that are now arising.
 There have been earnest attempts to take away from New York some part of the business which the city has in great measure obtained and held in foreign exchange and in collateral items Some years ago Chicago bankers undertook to gain at the expense of New York con siderable business in foreign exchange. The Chicago bank secured five hundred millions in gold. It made advertisement of that accumulation of gold which was 10 be made available for exchange trans. actions. The announcement caused con siderable excitement and it was reported that throngs gathered around the win dows of the bank so that they might read with pleasure and with wonder the statement that the bank had this large accumulation of gold and was made ready thereby to begin competition with New York for certain kinds of banking business. But the attempt was not long lived. No more gold went to Chicago for that purpose, and if there were any competition the New York bankers did not recognize it, or if they did, made no reference to it.
 Undoubtedly, with the quickening of the seaboard ports of the south much the larger part of the cotton designed f<,,. nfrrv,r yofC hA Cht the southern ports. This may have been one of the reasons which led the Boston institution to secure control, as reported, of Washington bank, for the proximity of Washington to the southern ports would seem to give the capital some ad- vantage.
 WHAT COTTON BILLS CAN DO
 Bills drawn against the shipment of cotton constitute very large part of the foreign exchange which originates in the United States. probably not so large part as bills brought against the ship ment of wheat, although more regular.
 more steady than wheat bills. They have also served greatly to aid the United States in times of serious finan- cial embarrassment.
 The only time when the late J. P. Nor gan was forced to stand with his back to the wall was in the days when he StrOVe deSperdteiN to luiIlil HIS picuSc to President Cleveland to, prevent the ex- port of gold. and in that way to pro- tect the gold that was in the United States treasury. To do this MT. Morgan vas compelled to buy all. the exchange hich the market offered. He even se7 cured the markets, communicating with New Orleans, Mobile, Galveston, in order to secure all the cotton pills which the exporters were drawing. In the way he did at last obtain foreign exchange in sufficient amounts to meet the demands for American gold, and kept his pledge to President Cleveland although the cost to himself was heavy.
 Again in 1907, when panic prevailed and the danger was great of something like national bankruptcy of American indus try, James Stiliman who was at that time president of the National City bank