The Birmingham age-herald., 1920-04-19

As the years progressed the pail of Oppression was gradually lifted and, although for a long time cotton grow
 ing yielded no profit. yet by dint of
 rard work and close economy and by
 the application of the principles of crop diversification the farmers grad
 uany became more 3Gudent and
 the crop marketing season began to iengthen in a corresponding degree The years 1911, 1912 and 1913 were 1 fairly good ones for the cotton farmer
 and in 1914. as the season advanced and indications of all abundant yield, which was actually realized. became
 more in evidence, there was par ticularly hopeful and confident feel ing throughout the cotton belt until August. when without warning, the
 European war broke out and paralyzed l the commerce of the world.
 CONDITIONS IN 1914
 All of you remember the fall of 9l4. The season had been propitious, the largest crop iR history had been produced-more than 16.000, 900 bales-- and yet for months, because of the closing of the markets and the stop page of ocean transportation, cotton
 could not be sold at any price. Quota tions of cents pound, which had been real quotations eighteen or | twenty years before. were merely nominal and a cry of distress went up throughout the entire length and breadth of the cotton belt. There was a great demand for loans on cotton, but the need for market was even greater. During these months the en- tire business of the country was af- fected the federal reserve system had
 rot begun to function. exchanges were closed, money was scarce and credit hard to obtain on any terms. Gradually, however. the situation be- gan to improve. A cotton loan fund cf $10o, o00,00 was provided during the autumn and the southern people should not forget that subscriptions to this fund were made by banks in other sections many of which were in localities whose immediate Everest seemed to lie in cheap cotton. It was realized then that cotton is not merely a sectional crop, but that it is a great national asset While the fund was rot used to any appreciable extent, it's establishment had a good moral eff
 feet, for it fixed a loan value for cot ton. and as the ocean vessels which
 had been tied up for fear of destruc- ton by enemy cruisers began once more to leave their havens of refuge and as the financial situation became easier the spinners began to buy and the crisis was passed.
 Since the fail of 1915, there has been a steady an dalmost continuous ad- vance in the price of cotton; middling uplands which sold at about cents a pound on July 1, 1915, bring now, believe, about 42 cents. During this reriod, however. there has been more holding of cotton on the farms and in the small towns than was ever known before. This holding has been due in larger part to the necessities of the case. to the inability of certain counA tries owing to the war to purchase their accustomed supplies, and to pri- critics in the use of ocean shipping for the transportation of food stuffs, war materials and troops. We have had, therefore, during the past two years a continuous cotton season. The more gradual marketing of cotton has keen possible because of improved hsnNing facilities. but more particu- garly because of the stronger financial rositon of the producers themselves. 4et he price of commodity is a relative term Two hundred dollars tale for middling cotton would haye seemed six years ago fabulous priee; today. when we consider the pries of cotton goods. the cost of la8or, both on the farm and in the cities. the price of grains, meats, clothing. shoes, agricultural imple- fneats of mules and horses, and the enormous taxes which are imposed in consequence of tho war, it is evident tcat relatively the price of cotton is het so high. There has been an ad- vance in the market value of ths tends upon which the cotton is pro- auced and a great advance in the price of fertilizers, and it is clear that the
 ost oe production has mounted in pro-
 0rtion to the increased price of the ataple.
 GOOD TIME TO PAY DEBTS
 I have not time for discussion of the ,auses and general effects of credit ex- pansion, but I do wish to say that while in terms of commodities the purchasing power of the dollar is far less than it was in pre-war days, there, has been no de- cline in it's debt-paying power. While one cannot buy with the s200 which he re- ceives for bale of cotton today as much food and clothing or as much gasoline as could have been exchanged for $loo a few years ago, you can still pay off saO0 of indebtedness with the proceeds. There has never been a time within the memory of the present generation so fa- vorable for the payment of debts as the present, and I would strongly adviSe