The Washington times., 1921-09-08
New York Optimistic
Over Boom Times
As Cotton Rises
+ BY SAUL HAAS.
International News Service.

As Cotton Rises
BY SAUL HAAS. -.
international News Service.
NEW YORK. Sept. s.-There was
a certain amount of optimism In bust
ness circles here today following the
sensational rise in price OF cotton.
which has added some $600.000. 900
in ten weeks to the wealth Of the
cotton-growing States Of the South.
Bankers, merchants. and others
were interested to know just what
effect the rise in cotton would have
upon further business revival, which
already has brought large orders to
New England mills and set them go
ing full tilt after months Of idle
| ness.
Wanamalser Sees Worst Over.
John wanamaker, of Philadelphia.
telephoned this exclusive statement
to the International News Service:
II think It will take more than one
commodity to rise in value to affect
in any substantial way the condi-
tions at present existing, but ! be-
lieve that the worst Of the depressing
times Is over 80 far as general bust.
ness ts concerned.
There win have to be congestion
In cities like New York and Chicago
from overspeculation In the uncer-
taintfes of newly formed companies
based on subscription to shares Of
stock which thus far have not been
marketable.
"The rise In cotton In one of the
galaxy Of new stars appearing every
week and we must be cheerful and
hopeful and not talk things down. but
talk them up"
He Detected Buyers Strike.
John wanamaker, It is remembered.
was one Of the first to detect the
buyers strike of year ago and the
necessity Of cutting prices.
Leopold 8. Bache. head OF the bank
ing firm Of J. 8. Bache and Company.
international bankers, who recently
retired as president Of the New York
Cotton Exchange. explained the move
ment in cotton and its probable effect
upon general business conditions. as
follows:
THE upward movement in cotton
was started by persons who had SOLD
short great quantities of tho staple
and who realized that basically they
were wrong.
Their rush to buy cotton started
the swing upward. not only here, but
In every market of the world. In
Liverpool, the speed with which cot
ton advanced in price was greater
than here. ..-..t.# - D.. .F
Is Beginning Of the End.
But this rise In prices Is more than
speculative movement. 1t is the be-
ginning OF, the end OF the period of
frozen credits and nationwide depres-
sion. 1t means Ioosening up of funds,
not only here but in England.
"The farmers Of the South had been
raising only one crop-cotton. The
banks Of the South had loaned a great
portion of their funds on this one crop.
When cotton dropped in price the
farmers were unable to meet their
loans at the banks. The banks were
therefore. unable to lend moneys for
further productive business. Credits
were literally frozen.
'"The full increase in the market
price Of cotton will probably not hold,
although 1t is basicaily justifiable. The
reason, to my mind, is that this in
crease has something Of q speculative
nature in it. But none the less, the
new prices mean that the South is
immeasurably richer today than 1t was
a few days ago. .....
To Melt Frozen Credits.
There is one inevitable result. The
frozen credits of the south will begin
to liquidate, to melt--as II were. Mil
lions Of dollars long tied up will be
released for the needs of industry.
The back of the nationwide depression
Is broken. Cotton is the beginning.
1t is the turning point. Although the
present high price may not hold, cot
ton will sell for. what 1t is worth, and
that Is even more than the present
price. AS with cotton, so with other
commodities. The non-liquid funds of
the country are being freed"
The Census Bureau today announced
the running bales of cotton, counting
round as half bales, ginned to Septem.
Der ], from the crop of 1921, was 4S1,.
7SS, as compared with 351, $50 for the
same period of last year. Round bales
included numbered 86,208, as compared
with 17,451 last year. as. -,
The number Of running bales, count
ing round as half bales and excluding
linters, ginned In 1921. by States, was
as follows: .
Alabama, 1884; Arkansas, ae5;
California, 173: Florida. $50; Georgia,
4S,124; Louisiana, 2,6s8; Mississippi,
3,903; North Carolina, 73: Otxlaiorna,
1,1s7; South Carolina, 1.04o; Tennes-
see. Q; Texas, 409, ,026; all other, 1T.
The worlds production Of CONNER
cial cotton, exclusive Of linters,
grown in 1920. was approximately
1s,S1s,o0 bales Of 500 pounds net,
while the consumption Of cotton, lex.
elusive of linters In the United
States) for the year ending Jr,y 81 !.
1921. was approximately is SEC, ,00o
baIes NJ ZOO founds net