The herald and news. (Newberry S.C.) 1903-1937, July 09, 1915, Page SEVEN, Image 7
f ? ?
f UNITED STATES SHOULD
I BRING ENGLAND TO TERMS
That Is the Key to the Situation?Hoke
Smith Says British Have Played
Kayoc With Cotton Trade.
m. . i i
AUgUSlcl VJUli-iliUit <Ji iASl OUU-i
day publishes the following exclusive
interview with Senator Hoke Smith,
of Georgia:
The public mind was justly filled
with horror at the sinking of the Lusitania.
But we should not for this
reason forget that Great Britain and
lier allies have utterly disregarded the
rights of American citizens, have
placed a heavy burden upon the legitimate
commerce of this country, and
have injuriously curtailed cotton markets.
Just before the war began middling
cotton was selling at 13 1-2 cents a
pornd. "We normally sell abroad twothirds
of our cotton crop. For a while
our entire foreign market was cut off.
Our domestic market was seriously im
paired by the disorganized condition
of our finances.
Too much praise can not be given
the administration tor t?:e manner in
: "which our currency laws were amended
and threatened liquidation prevented.
Now the reserve banks are in a
position where they can issue, if necessary,
from $7,000,000 to $800,000,000
of reserve notes fully secured, and
our domestic market for cotton is removed
from strain.
Last fall exports were hampered by
the enormous insurance rates on trans- j
oceanic shipments. The war insurance!
bureau established in the treasury de-!
partment reduced war insurance rates,
which were ranging from 20 to 30 per
cent, down to 2 and 3 per cent.
"Why the Price of Cotton Went Down
to Six Cents
Still, during the latter part of October
the price of cotton did not rise.
The markets of Germany, Austria and
northern Europe consume over 13,000,000
hales of cotton annually. This I
^ market remained closed. Buyers of!
f?nttr?n thought it would continue closed!
and the lessened demand, coupled "with
the threatened surplus, carried cotton
down to 6 cents a pound, with a limited
market even at that price.
Shipments of cotton to Germany,
Austria and northern Europe were
; prevented by the constantly circulated
reports that Great Britain intended to
put cotton on the contraband list, and
c&ivo i7?icc<i1o /?arrvirpr rntt.nn.
October 23d the acting secretary of
* 6tate, at the instance of a committee
of senators, conferred witfi 'tne British
ambassador, and urged the British
government to give a definite statement
with reference to cotton shipL
ments. October 26th the British ambassador
presented to the state department
a letter which contained the
following language.
"Last nignt I received a reply from
Sir Edward Grey in wrich he authorizes
me to give the assurance that
cotton will not be seized. He points;
out that cotton has not been put in j
any of our lists of contraband, it is, I
k therefore, so far as Great Britain is
concerned, in the free list, ana "will
remain there."
"Why -Cotton Jnmped From Six to
Ten Cents.
Tne communication of this assur-|
ance from G-reac Britain made it practicable
for cotton merchants to secure
I "vessels and to finance shipments of i
cotton to Germany, Austria, and to
northern Europe. This market "was
thus opened. Cotton buyers realized
the broadening market for cotton.
During the months of December, Jan
nary and iveDruary large q-iutnuircs ui
cotton -were shipped abroad, and the!
price rose from 6 cents a pound to i
10 cents a ipound. 'During (March middling
cotton sold up to $10 1-2 cents a
pound.
Thus we have a clear illustriation of j
how the closed market depressed the
price, and tow the opened and broadened
market increased the price at
which cotton sold.
"What "Orders In Council" 13id to Cotton
U On the first of March came the no^
tice from Great Britain that the "Britash
and French governments will hold
themselves free to detain and take into
port ships carrying goods of presumed
enemy destination, ownership,
or origin." This was followed by the
V order in council of March 12th, but
prior to that order the state department
-war informed bv the British am
bassador that so far as cotton was concerned
shipments made during tfre
month of March would not t>e subject
to the order of council, but would be
covered by a different rul&. That rule
provided "The cotton for which contracts
of sale and freight engagements
already had been made before March
2d, is to 'be allowed free transit or
bought at contract price is stopped,
provided tffce ship sails not later than
March 31st."
during February 1,501,000 bales of
cotton were shipped abroad. During
I iMarch 1,208,500 bales of cotton left
mr Tmrrtt "Rut Creat Britain allowed
no cotton shipped in March to go free
k %o Holland, Denmark or Sweden. The
l vessels cargoes of eorton "were
I seized, and the-cotton shipped to Rotterdam,
Gothenburg and other European
ports was carried into English
ports. Over 200,000 bales of t':is cotton
destined for northern Europe were
sold by Great Britain in England duri
ing April and May.
Drop From 43?>,037 to 45,300 in MonMu
The table of exporta:ion as kept by j
t^ie department of commerce classifies
France, Germany, Italy, Russia in Europe,
Spain and the United Kingdom j
separately. . The figures then show for
the balance of Europe as "Other Europe."
They show ti.at in February
we exported to "Other Europe" and
Germany received 88,000 bales.' In
April we exported to Germany no totton
and >to "Other Europe" only 45,300
bales, thus showing the tremendous
shrinkage of exportations of cc*tcn to I
the neutral ports of northern Europe, |
pflncpr? hv the illee-al blockade. "Rut !
for the blockade, Germany, Austria
and northern Europe would have purchased
before August 1st, 1,500,000
additional bales of las: year's crop.
Three Million Bale Market Cut Off For j
This Year's Crop,
Before these seizures by Great Brit* |
ain, the price of cotton was steadily'
rising. After Great Britain cut off our
German, Austrian and northern European
market, the price of cotton fell
j in England a cent and a half a pound.
Great Britain stopped the rise and j
vauocu IUC LCLH 111 Lliu pi ivt v/i. V.UIIVU
during the past two montf's.
If the present illegal blockade by
Great Britain of neutral ports of northi
ern Europe is permitted to remain of
force, no: only will we lose the market
now for 'palrt of last year's crop, but a j
market will be cut off for 3,000,000
bales of this years' crop.
On March 30th the state department
of our government wrote Great Britain j
protesting against the notice from |
'Great Britain protesting against the
notice from Great Britain of March'
1st. and the order in council was a,
declaration of purpose by Great Britain
to intercept all vessels destined to or
j from tf:e ports of northern Europe
| carrying goods of presumed enemy
destination or origin. That is to say,
this order in council of March 12:h;
announced the purpose of Great Brit- j
ain to close the neutral ports of,
northern Europe to the commerce of
the United States, even though the j
cargoes consisted of non-contraband |
goods, wfaen Great Britain suspected!
that the cargoes might be destined to
!German or Austrian use, or that the,
careoes were of German or Austrian
origin. j
Cannot Blockade Neutral Port,
There is no rule of international,
law more fully established iaan that a <
1 belligerent can not blockade a neutral
port, and neutrals have the right to ;
si'ip to neutral ports non-contraband
goods even though the ultimate destination
of ithese goods is to citizens
of one of the belligerents.
Our government, through the state
department, wrote ureat cmaiii on
| March 30th protesting against the noi
tice of March 1st and tf:e order in(
j council of March 12:h. In this letter :
I of March 30th it was declared that'
"innocent ships may be freely transported
to and from the "United States
through neutral countries to belligerent
territory without 'being subject to
British blockade, much less to detention
and confiscation." Again this
same letter declares that such inter-;
ference by Great Britain is a "distinct
invasion of the sovereign rights of the
nation whose trade and commerce is
interfered with." j
England's. Only lAnswer Wjs Continued
Seizures,
The only answer Great Britain ftas
given to this letter has been the continued
seizure of vessels loaded with
cotton and other non-contraband
goods destined to neutral ports. Th^se
seizures have continued to such an
extent that shipments of cotton into
tf:is territory have been abandoned.
Great Britain has destroyed the market,
and has deterred cotton merchants
and shippers from even seeking further
to enter the market.
A cotton shipper -was in Washington
a few days ago witli an order from
Sweden for 10,000 bales of cotton. He |
had proof that tfte cotton would <De
consumed by Swedish mills. He
sought to obttain assurance from the
English embassy there that the vessel
would not be seized if he sent the cotton.
He obtained no satisfaction.
How the South Suffered from This
Illegal Blockade.
The injury to our entire country, and
especially of the cotton growing states,
if the illegal blockade to which I have
referred is permitted to remain of
force, can not be over-estimated. Our
people struggled through low prices
last fall. fThey must not submit to
continued low prices caused by an
illegal blockade.
T_ t ^ ~
m a. iiuuuut;: uj. lusmuues 'oweuioui
spinners are now in England seeking
through the aid of itheir government
to obtain cotton consigned to them by
citizens of the United States which has
been seized by Great Britain. By the
help of their own government they
may obtain some of this cotton.
reat Britain teas neglected to ?eti
tie wit:, the cotton spinners for cotion
seized. Various excuses have been
given which can be easily answered.
One of these excuses recently embodied
in a letter from Edward Grey
is that Swedish consignees are claiming
some of the co.ton. The shippers
from the United States ask nothing
better than t at cotton should be
turned over to their consignees. Great
Britain does not deliver to Swedish
consignees, or pay the American shippers.
Seized Cotton, Bnt Won't Pay.
I had brought to my attention within
the past two weeks the case of a
Southern firm whicn early in March
shipped several thousand bales of cotton
to Rotterdam, Holland. A member
of the firm came here and presented
his invoices together with proof of his
contracts of sale to the British embassy,
and ougr.t to obtain payment
for the cotton which Great Britain
had seized, and sold, but he was able!
to obtain no satisfaction.
I will no: take up more time discussing
the mistreatment Great Britain has
given to those cotton shipper.-? whose
cotton has been carried into English
l.orts. Wi:ile it is a serious matter
or th( m to have from $5,000,000 to
$8.00D (o0, which thev sLcvid ha\e received
for heir cotton, tied up by the
British seizures, the reaJly D.'g proDVm
is the loss of our market caused
by t e ill^a: conduct of Great Britra
:j. and ' *e helplessness o* ir.dividlals
to delenc? themselves.
In Spite of Promises Seizures Continue.
The declaration of London made by
the representatives of the great nations
of the world, February, 1909,
contained a list of those things which
under no circumstances in case of
war were to be made contraDana, ana
the list was oeaded by raw cotton.
Great Britain has solemnly pledged
to this government by the letter of
October 26, that cotton would not be
seized, an?l chat so far as Great Britain
was concerned it was on the free
l;s1 and would remain there. In spite
of all thi?. the seizures have been
made an ! the cotton trade with Germany,
Austria and all of noithern
Europe destroyed. Other non-contraband
commodities have been similarly
created by Great Britain.
There Are Other "Rights" of Citizens
That Should Be Stressed Upon.
The importance of pressing our
cotton markets can not he over-estimated.
It is non-contraband and Great
Eritain has no rigi' t to make ir contraband.
Great Britain has no right
to Mockade neutral ports. We should
insist upon the rights of citizens of
the United States to ship cotton to
Holland. Denmark and Sweden, even
though it ultimately may go 'to Germany
and Austria.
Not one line has go^e from our government
to Great Britain since the letter
of Marcfr 30. which Great Britain
ignored. It is but fair to the administration
ito say that I believe the sub
jeCL WOUiQ navtr 'ueeii agicasivc y
handled before the middle of May but
for the sinking of the Lusltanla.
We should not submit longer to the
disregard of our rights by Great Britain,
no matter what Germany f:as
done. The 'people of the entire country
should understand what has taken
piace, and especially those who are
being so grievously wronged shor-ld
see the hand that strikes tfte blow.
But it is said that cotton is used to
make explosives. This is nothing new.
'Tx An a /Icnln r*o "f
11 was IUC SSOJSSt; WJCU UlC uttiaiauvu
of London in 1909 declared that raw
cotton could not be put on the contraband
list. It was fthe case last
October when we received the solemn
pledge from Great Britain that no
interference should be made with cotton
shipments. "Great Britain can not
now make a new rule that we should
recognize on tfris subject, and she has
not undertaken even to make cotton
contraband. It is being stopped by an
illegal blockade, a blockade which disregards
recognized principles of inter
IldUUliiii Id v> , emu. w tuu ^
tion of London of February, 1909, expressly
declares shall never be made
contraband.
Destroying Our Markets, While We
-Supply Her With Ammunition.
Our own government has notified
Great Britain that fc is interference is
"a distinct invasion of the sovereign
right of the nation whose trade and
commerce is interfered with."
Great Britain and the allies are receiving
half of their munitions of war
from tfce United States. They would
destroy ,'uhe market for the farmers of
the South, and the market for many
American producers, while they rely
upon the United States to furnish them
their implements of war.
There is no occasion to involve tfse
United States in war with Great Britain
and the allies, but we should definitely
notify them that "unless our neutral
rights are regarded they can not
continue to receive neutral privileges
from the United S'ates. If Great Brit"*
1 "* 1 1 * - ?? V* /x+ifi + h O f
, air. and trie ainf-s wtrt? uuimcu
! si. ,'rnents of munitions of war will "be
i
, discontinued so long as Great. Britain
, prevents shipments bv citizens of the
! United States, legal at the time itfye
'war began, owr difficulties wowii
I
jq n'cklv solved. Great Britain would
| withdraw the blockade of neutral ports
cf northern Europe rather :han lose
1-er supplies from the United States.
1 . rust that bv the time this is read
cur government may take firm action
to compel Great Britain to cease ille- i
gaily interfering wit/, our cotton mar-!
nets. But if it has not been done, I ;
ask the support of those interested to j
r.t1n Virinor r>rcic en imnn firea, Brit- I
"'-'.F f* v v* - ^
air. to save the market for our cotton
(rop. Hoke Smith.
ArSTRO-GERMANS CHECKED.
London, July 6.?T.'.e Austro-Oerman
rush in the east appears to he
losing its momentum, except in certain
sections between ihe Vistula and
the Bug. The Russians have braced
and are holding at most points, although
the Austrians claim progress
i northeast of Krasnik, and also along
j the river Vieprz, in tf:e neighborhood
of Tarnograd.
This is a critical section so far as a
northward blow at Warsaw Is concerned,
but it is evident "Jie Russians
I are stiffening their resistance after j
I thpir Inr? rpfrpat
, V.-V.4 -W? 0 -
The British -press, for the first time
in weeks, takes a more cheerful view 1
of the Eastern situation.
It is noteworthy t.ai Ber'in todav
claims only a gain on tlie northern
Poland front, leaving the southeastern
field entirely to the Austrians, who
emphasize that an advance on the center
between ti e Vistula and the Bug
was made by "Austrians."
TV* r\ Ar +>io Rritich frnrit in 11
| ? \J i.? \-, Jfc-r* avmaa J.* VMV
Flanders has been broken by a British
gain of German trenches north of
Ypres. JThe advance was made after
typical trench warfare tactics backed
j by French artillery.
This part of *:i:e western front still
holds its reputation as a gas area.
Field Marshal Sir John French again
recounting how the Germans have
been bombarding Ypres with gas
shells.
The la?,t 24 hours T.ave brought
many renewed rumors that the Germans
plan a new offensive in the west,
their aim being to duplicate their Galician
tactics and break through to
Calais at all costs. These reports
came almost simultaneously from Zurich,
Brussels, Paris and 'Amsterdam.
London papers give them prominence,
alti ough how much is guesswork and
"U . . ~ "U knn/. J Tt lo 1TY1
LIO w Jli UL-xi IS uascu Wll iatio it 10 ? ?-"
possible to determine. According to
the Zurich report, 10 German army
corps are moving westward.
The latest advices from G-en. Sir
Ian Hamilton, commander at the Dardanelles,
took the Anglo-rrench expedition
no furtiier forward, but made
| plain the gallantry of the British aad |
| French troc ps, w.ho are fighting under |
| almost unsuncountable difficulties.
PARKER, X. C., MAN
SETS QUICK RELIEF
1
W. R. Davenport Better After First
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YOURBODY
Protests Against Calomel
I
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I
Excui
Of the Sea:
Charle
And the Fc
Isle of
Via
Southern .
Premier Carrier <
Thursday, July
Lv. Newberry 11:3$
Lv. Prosperity 11:5;
A mA ^lo> n ??1 7.1 /I
rti. viiancsiuii f.xu
Excursion tickets will be
trains and special schedule i
will be good returning on an
and including morning train:
Tuesday, July 13, 1915.
Ample coaches will be pr
scheduled above to comfort
cursionists.
Spend a week-end at the I
its magnificent hotels and re
Dancing every afternoon i
est Pavilion in the South.
Continuous concerts by th<
tary Band.
Remember, you have Four
Make up your parties for;
For further information a]
M. E. M'GEE, i
Asst. Gen. Pass. Agt
Columbia, S. C.
wmmmmmmmmmmmmmmmmummmmmmmummmmmammmm
The School Improvement association
of Pomaria will give a barbecue in I
bhe grove at Pomaria on July 3, fortfce ^e:
benefit of the school. anc
Mrs. Jno. C. Aull, Pres.
ARE YOU
to the
Panama-Pacific
at
San Franciso
Diego, Ca]
by one of th<
VARIABLE PREDEF
9
If so, write the undersig:
fares, folders and all particul:
Excursion tickets permi
famously attractive and sc<
T. C. W
General Passenger Agent
Atlantic Co
I The Standard Railroa
nBuHnBaBnW/
sion
son to
iston
imous
Palms
Railway
A r~% rn 1
tne aoutn
8th, 1915
$ a.m. - $3.00
I a.m. - $2.90
I p.m.
good going only on
mentioned above and
y regular train up to
3 leaving Charleston
ovided on all trains
.ahlv handle the ex
SLE OF PALMS with
staurants.
ind night in the larg2
noted Metze's Mili
Days at thejseashore
a. delightful outing. _
pply to ticket agent or
3. H. M'LEAN,
Dist. Pass. Agt.,
Columbia, S. C.
Barbecue.
will give a big barbecue at my resace
July 3 at 11 o'clock. Sell meat
t fcaslL
J. M. Counts. '
?
GOING
Expositions I
o and San 1
lifornia I
5 many
tECT ROUTES
tied for low excursion
ars regarding your trip, I
it stopovers at many |
aiic points and resorts, i
HITE,
, Wilmington, N. C.
ast Line I
d of the South. K
I