The Bremen Cotton Exchange has never occupied itself with politics,
but, of course, the members could not help taking serious notice of
occurrences which shook the world's foundation. Together, with the
expansion of business, grew also a political apprehension. France was
lending milliards upon milliards to the Russian Czardom, with the
express condition, that the money had to be expended in preparation for
a war against Germany. One saw, that France gave Egypt to England,
although it did not own it, on the other hand, England ceded Marocco to
France, without having any sovereign right over that country. That
Germany had interests in both places, was overlooked. The English
newspapers, so widely read in Bremen for their business news, brought
articles upon articles, picturing the dangers of a German Invasion. In
the most lurid of colors, the cruelties of the war were painted, that
was supposed to threaten England, and all this, for no other purpose,
than to inflame the passions of the English people.
What did the commerce do in face of these threatening symptoms?--Nothing!
Without an anxious thought, people looked after their business, and
showed an optimism, which to-day, is inexplicable.
On the 25th of July in 1914--after the Austria-Serbian ultimatum--careful
merchants insured their afloat cotton against war risks. The big German
Insurance Companies took this risk for 1/8%, let us repeat it, one
eighth per cent! How was it that the insurance companies were so
unconcerned? At the same time in Bremen, and at other places in
Germany, many insurances were covered with English companies. Did
nobody see danger ahead?
All political misgivings of those days were silenced by the feeling,
that to think of war was monstrous and to believe in war, an
impossibility, on account of the highly developed economic relations
which connected all countries.
Yet the war came! At the outbreak, many cargoes of cotton owned by
Bremen merchants were afloat, and many "future" contracts were open in
the Liverpool market. Later on, the cargoes were taken by the enemy,
and the Liverpool contracts were liquidated, in accordance with a
certain system, but without the consent of the other parties to the
contract, and without reservation of their rights. Bremen had a
considerable stock of cotton at the commencement of the war,
consequently was in a position to supply the German cotton mills for a
long time. If proof had been needed to show the advantage of having an
important cotton market in Bremen, the war would have furnished it. The
cotton trade was not satisfied to deal only with the existing supply,
but did its very utmost to secure fresh imports, and was successful, by
means and ways hitherto unknown, to bring considerable quantities of
cotton into Germany, where it was of great service.
The Cotton Exchange does not trade, but under the war-conditions and in
the knowledge of being the centre of commerce and industry, a
courageous attempt was made. At the instigation of the Exchange,
commerce and the spinners of Germany and Austria-Hungaria united, to
give a bid for one million bales of cotton to the Americans. Cotton was
no contraband of war, and America was neutral, so no difficulties
seemed to be in the way of executing this plan. The buyer was prepared
to pay the price which the Americans might demand, and the goods were
to be paid in hard cash dollars. Yet the offer was not accepted,
although America had sufficient reason to seek an outlet for the big
crop it had grown, and that nobody wanted under the war conditions.
Politics were too mighty for the reasons of commerce!
After a while, all connections ceased with America. The Bremen Cotton
Exchange and the cotton trade were at a stand-still. Now and then, the
Exchange tried to place their establishment at the disposal of the
trade in substitutes, but only with moderate success. To build up a
lasting trade in substitutes was as impossible as it was to find a
market for the substitutes, when once cotton began to appear again.