Newspaper Page Text
rAGE SIX
HOKE SMITH SAYS (HEAT BRITAIN WITHOUT
WARRANT IN LAW OR JUSTICE IS DESTROY¬
ING SOUTH’S FOREIGN COTTON MARKET
Washington, D. C.—United States
Senator Hoke Smith has given an in¬
terview, in which he most forcibly as¬
serts that the people of the country,
particularly of the South, through their
representatives in congress and
through their influence in Washington,
must promptly and vigorously take
steps to compel the British govern¬
ment to call off its illegal blockade of
neutral European ports, whereby irre¬
parable injury is being done to this
country, and particularly to the South,
through closing so many important Eu¬
ropean markets to cotton, etc. Sena¬
tor Smith is convinced that we have
it in our power to open the seas to
eur non-contraband commerce by sim¬
ply refusing to supply England and
her allies with ammunition until she
recedes from her present unwarrant¬
ed and . nprecedented position.
(By Senator Hoke Smith.)
The public mind was justly filled
•with horror at the sinking of the Lu¬
sitania. But we should not for this
reason forget that Great Britain and
her Allies have utterly disregarded
the rights of American citizens, have
placed a heavy burden upon the le¬
gitimate commerce of this country,
and have injuriously curtailed cotton
markets.
Just before the war began middling
cotton was selling at 13V^ cents a
pound. We normally sell abroad two
thirds of our cotton crop. For a while
our entire foreign market was cut
off. Our domestic market was serious
ly impaired by the disorganized con¬
dition of our finances.
Too much praise cannot be given
the administration for the manner in
which our currency laws were amend¬
ed and threatened liquidation pre¬
vented. Now the reserve banks are in
a position where they can issue, if
necessary from $700,000,000 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¬
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 Oc¬
tober the price of cotton did not rise.
The markets of Germany, Austria and
northern Europe consume over 3,000,
000 bales of cotton annually. This
market remained closed. Buyers of
cotton thought it would continue clos¬
ed, 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 pre¬
vented by the constantly circulated re¬
ports that Great Britain intended to
put cotton on the contraband list, and
seize vessels carrying cotton.
October 23d the acting secretary of
state, at the instance of a committee
of senators, conferred with the British
ambassador, and urged the British
government to give a definite state¬
ment with reference to cotton ship¬
ments. October 26th the British am¬
bassador presented to the state de¬
partment a letter which contained the
following language:
“‘Last night I received a reply from
Sir Edward Grey in which he author¬
izes me to give the assurance that
cotton will not be seized. He points
out that cotton has not been put in
any of our lists of contraband. It is,
therefore, so far as Great Britain is
concerned, in the free list and will
remain there.”
Why Cotton Jumped From Six To
Ten Cents
The communication of this assur¬
ance from Great Britain made it prac¬
ticable for cotton merchants to se¬
cure vessels and to finance shipments
of 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, Janu¬
ary and February large quantities of
cotton were shipped abroad, and the
price rose from 6 cents a pound to
10 cents a pound. During March mid¬
dling cotton sold up to 10% cents a
pound.
Thus we have a clear illustration
how the closed market depressed the
price, and how the opened and
ened market increased the price at
which cotton sold.
What The “Orders In Council” Did To
Cotton,
On the first of March came the
notice from Great Britain that the
“British and French governments will
hold themselves free to detain and
take into port ships carrying goods
of presumed enemy destination, own¬
ership, or origin.” This was followed
by the order in council of March 12th,
but prior to that order the state de¬
partment was informed by the British
ambassador that so far as cotton was
concerned shipments made during the
month of March would not be subject
to the order in council, but would be
covered by a different rule. That rule
provided ‘“the cotton for which con¬
tracts of sale and freight engagements
already had been made before March
2, is to be allowed free transit or
bought at contract price If stopped,
provided the ship sails not later
March 31st.”
During February 1,501,000 bales
cotton were shipped abroad.
March 1,208,500 bales of cotton left
our ports. But Great Britain allowed
no cotton shipped in March to go
free to Holland, Denmark or Sweden.
The vessels with cargoes of cotton
were seized, and the cotton shipped
to Rotterdam, Gothenburg and other
European ports was carried into Eng¬
lish ports. Over 200,000 bales of this
cotton destined to northern Europe
were sold by Great Britain in England
during April and May.
A Drop From 435,037 Bales To 45,300
Bales In One Month.
The table of exportations as kept
by the department of commerce classi¬
fies France, Germany, Italy, Russia
in Europe. Spain and the United
Kingdom, separately. The figures then
show for the balance of Europe as
“Other Europe.” They show that in
February we exported to “Other Eu¬
rope” and Germany 435,037 bales of
cotton, of this Germany received 88,000
bales. In April we exported to Ger¬
many no cotton and to “Other Europe”
only 45,300 bales, thus showing the
tremendous shrinkage of exportations
of cotton to the neutral ports of north¬
ern Europe, caused by the illegal
blockade. But for the blockade, Ger¬
many, Austria and northern Europe
would have purchased before August
1st, 1,500,000 additional bales of last
year’s crop.
A Three-Million-Bale Market Cut Off
For This Year's Crop.
Before these seizures by Great Brit¬
ain, the price of cotton was steadily
rising. After Great Britain cut oft
our German, Austrian and northern
European market, the price of cotton
fell In England a cent and a half a
pound. Great Britain stopped the rise
and caused the fall in the price of
cotton during the past two months.
If the present illegal blockade by
Great Britain of neutral ports of north¬
ern Europe is permitted to remain
of force, not only will we lose the
market now for part of last year’s
crop, but a market will be cut off for
3,000,000 bales of this year’s crop.
On March 30th, the state department
of our government wrote Great Brit¬
ain protesting against the notice from
Great Britain of March 1st, and the
order in council of March 12th. This
order in council was a declaration
of purpose by Great Britain to in¬
tercept all vessels destined to or from
the ports of northern Europe carrying
goods of presumed enemy destination
or origin. That is to say, this order
in council of March 12th announced
the purpose of Great Britain to close
the neutral ports of northern Europe
to the commerce of the United States,
even though the cargoes consisted of
non-contraband goods, when Great
Britain suspected that the cargoes
might be destined to German or Aus¬
trian use, or that the cargoes were of
German or Austrian origin.
Cannot Blockade a Neutral Port.
There is no rule of international
law more fully established than that a
belligerent cannot blockade a neutral
port, and neutrals have the right to
ship to neutral ports non-contraband
goods, even though the ultimate desti¬
nation of those goods is to citizens
of one of the belligerents.
Our government, through the state
department, wrote Great Britain on
March 30th protesting against the no¬
tice of March 1st and the order in
council of March 12th. In this letter
of March 30th it was declared that
“innocent ships may be freely trans¬
ported to and from the United States
through neutral countries to belliger¬
ent territory without being subject to
British blockade, much less to deten¬
tion and confiscation.” Again this
same letter declares that such inter¬
ference by Great Britain is a "dis¬
tinct invasion of the sovereign rights
of the nation whose trade and com¬
merce is interfered with.”
England’s Only Answer Was Continued
Seizures.
The only answer Great Britain has
given to this letter has been the con¬
tinued seizure of vessels loaded with
cotton and other non-contraband goods
destined to neutral ports. These seiz¬
ures have continued to such an extent
that shipments of cotton into this
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 with an order from
Sweden for 10,000 bales of cotton. He
had proof that the cotton would be
consumed by Swedish mills. He sought
to obtain assurance from the English
embassy here that the vessel would
not he seized if he sent the cotton.
He obtained no satisfaction.
How The South Suffers From This
Illegal Blockade.
The injury to our entire country,
and especially to the cotton-growing
states, if the illegal blockade to which
I have referred is permitted to remain
of force, cannot be over-estimated.
Our people struggled through low
prices for cotton last fall. They must
not submit to continued low prices
caused by an illegal blockade.
In a number of instances Swedish
spinners are now in England seeking
through the aid of their 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.
Great Britain has neglected to settle
I with the cotton shippers for cotton
THE COVINGTON NEWS, WEDNESDAY, JUNE 30, 1915-
seized. Various excuses have been
given, which can be easily answered.
One of these excuses recently em¬
bodied in a letter from Sir Edward
Grey is that Swedish consignees are
claiming some of the cotton. The ship¬
pers from the United States ask noth¬
ing better than that cotton should be
turned over to their consignees. Great
Britain does not deliver to Swedish
consignees, or pay the American ship¬
pers.
Seized Cotton, But Wouldn’t Pay
For It.
I had brought to my attention with¬
in the past two weeks the case of a
Southern firm which early in March
shipped several thousand bales of cot¬
ton 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 em¬
bassy, and sought to obtain payment
for the cotton which Great Britain
had seized and sold, but he was able
to obtain no satisfaction.
1 will not take up more time discuss¬
ing the mistreatment Great Britain has
given to those cotton shippers whose
cotton has been carried into English
ports. While it is a serious matter
for them to have from $5,000,000 to $8,
000,000, which they should have re¬
ceived for their cotton, tied up by
the British seizures, the really big
problem is the loss of our market
caused by the illegal conduct of Great
Britain, and the heplessness of indi¬
viduals to defend themselves,
in Spite Of Promises Seizures
Continue.
The declaration of London made by
the representatives of the great na¬
tions of the world, February, 1909,
contained a list of those things which
under no circumstances in case of war
were to be made contraband, and the
list was headed by raw cotton.
Great Britain has solemnly pledged
to this government by the letter of
October 26th that cotton would not be
seized, and that so far as Great Brit¬
ain was concerned it was on the free
list and would remain there. In spite
of all this, the seizures have been
made and the cotton trade with Ger¬
many, Austria and all of northern
Europe destroyed. Other non-contra¬
band commodities have been similarly
treated by Great Britain.
There Are Other “Rights” Of Citizens
That Should Be Stressed Upon
The importance of preserving our
cotton markets cannot be over-esti¬
mated. It is non-contraband and Great
Britain has no right to make it con¬
traband. Great Britain has no right
to blockade 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 Ger¬
many and Austria.
Not one line has gone from our gov¬
ernment to Great Britain since the let¬
ter of March 30th, which Great Brit¬
ain ignored. It is but fair to the ad¬
ministration to say that I believe the
subject would have been aggressively
handled before the middle of May but
for the sinking of the Lusitania.
Should Hold England To Account, No
Matter What Germany Has Done.
We should not submit longer to the
disregard of our rights by Great Brit¬
ain, no matter what Germany has
done. The people of the entire coun¬
try should understand what has taken
place, and especially those who are
being so grievously wronged should
see the hand that strikes the blow.
But it is said that cotton is used to
make explosives. This is nothing new.
It was the case when the Declaration
of London in 1909 declared that raw
cotton could not be put upon the con¬
traband list. It was the case last
October when we received the solemn
pledge from Great Britain that no
interference should be made with cot¬
ton shipments. Great Britain cannot
now make a new rule that we should
recognize on this subject, and she has
not undertaken even to make cotton
contraband. It is being stopped by an
illegal blockade, a blockade which dis¬
regards recognized principles of inter¬
national law, and which the Declara¬
tion of London of February, 1909, ex¬
pressly declares shall never be made.
Destroying Our Markets, While We
Supply Her With Ammunition.
Our own government has notified
Great Britain that this interference is
“a distinct invasion of the sovereign
rights of the nation whose trade and
commerce is interfered with.”
Great Britain and the allies are re¬
ceiving half of their munitions of war
8 from the United States. They would
destroy the 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.
No Occasion For War, But “Firmness”
Is Needed Here, Too.
There is no occasion to involve the
United States in war with Great Brit¬
ain and the allies, but we should defi¬
nitely notify them that unless our neu¬
tral rights are regarded they cannot
continue to receive neutral privileges
from the United States. If Great
Britain and the allies were notified
that shipments of munitions of •war
will be discontinued so long as Great
Britain prevents shipments by citi¬
zens of the United States, ]~sal at
the time the war began, our difficul¬
ties would be quickly solved. Great
Britain would withdraw the block¬
ade of neutral ports of northern Eu¬
rope rather than lose her supplies from
the United States.
I trust that by the time this is read
our government may take firm action
to compel Great Britain to cease il¬
legally interfering with our cotton
markets. But if it has not been done,
I ask the support of those interested
to help bring pressure upon Great
Britain to save the market for out
cotton crop. HOKE SMITH
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NOTICE OF LOCAL LEGISLATION
Notice is hereby given that at the
approaching session of the Georgia
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a bill entitled:
AN ACT TO FIX THE SALARY OF
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