882 AMERICAN FORESTRY 



some time previous to the war, had problem, yet this will scarcely counter- 

 failed to buy even enough lumber to balance the shrinkage of income of cot- 

 keep their rolling stock in repair, ac- ton farmers, due to low prices, (6.3 cents 

 cumulating "bad order" cars by the per pound on November 1st, as corn- 

 tens of thousands on sidings, awaiting pared to 13 cents on the same date last 

 an improvement in financial conditions year), a shrinkage which the Bureau of 

 in general and also the clearing up of Crop Estimates of the United States 

 investigations being made by the Gov- Department of Agriculture places at 

 ernment. Just previous to the outbreak 435 million dollars. The effect is far 

 of the war, however, there were signs reaching since the farmer receives credit 

 of renewed activity on the part of the from the country merchant for supplies 

 purchasing department of railroads, and and sometimes cash advances; the 

 lumbermen began to feel optimistic in country merchant, in turn, receives 

 regard to an increased trade with them, credit from the jobber, and the jobber 

 The liquidation of very large amounts from the manufacturer. The entire 

 of railroad securities held by European credit system is thus crippled. The 

 investors immediately checked buying "buy-a-bale" movement which has been 

 on the part of the railroads, and the advocated by some as a solution of the 

 loss of this trade has been one of the disposal of the cotton crop is totally 

 depressing features in the lumber bus- inadequate to meet the present string- 

 iness. ency, since at best it would probably 



Another factor which has a marked take care of only a small per cent of the 

 bearing on the present unsatisfactory surplus, and, furthermore, the holding 

 state of the industry, especially in the of this cotton in warehouses for an in- 

 South, is the inability of producers to definite period awaiting a satisfactory 

 market certain staple articles, such as price merely jeopardizes the next year's 

 cotton and naval stores, valued at crop. What is needed is a market for 

 hundreds of millions of dollars. The the product which will convert it from 

 cotton crop of the present season, one a raw into a manufactured state, 

 of the largest grown for several years, Cotton is the staple crop of a large 

 comprises the chief money crop of the part of the southern rural population, 

 farmer. European countries, mainly many of whom have always operated 

 the belligerent nations, normally take on the "one-crop" plan and are incap- 

 more than one-half of the crop, but the able of substituting other products for 

 indications now are that they will pur- cotton because they do not know how to 

 chase only a small percent of the usual grow them. One feature which may 

 quantity. Not only is it impossible to have a marked bearing on the extent of 

 successfully market this crop in other the acreage planted next season is the 

 countries, due to their lack of plants inability of the planter to secure the 

 suitable for working up the product, but usual amount of fertilizer required for 

 also it has not been possible to increase his field. In the past, phosphate, an 

 the consumption in this country. In important element in the commercial 

 fact, the demand in the United States fertilizers, has been secured chiefly from 

 for cotton goods has decreased since the Germany, and the elimination of that 

 outbreak of the war; hence, the pur- source of supply will undoubtedly em- 

 chases of the raw supply are visibly barrass the fertilizer manufacturers in 

 affected. this country. With a low price for their 



A satisfactory method of financing cotton this year and a probable decreased 



the crop has not yet been reached, and acreage next year, the southern farmer 



until this is done the purchasing power will not be inclined to purchase com- 



of the lumber consumer of the South modities not absolutely essential to his 



will be extremely limited. The pool existence, and he certainly will not 



of banking interests which proposes to buy lumber with which to make im- 



raise and administer a fund of 135 mil- provements. 



lion dollars for loan on the security of The lumbermen of the South depend 



cotton may be a partial solution of the on marketing a large percent of their 



