University of South Carolina Libraries
,, _ FIGHT FOR 12-CEXT COTTOX. - Twelve-Cent Prices are Justified by the World's Demands. in? I beg space in your columns, Mr. Editor, to present a subject of the utmost importance to all our Southern country. There is no doubt in most thoughtful minds but that the mttnn rrnr is soill2: to be MVUWAJl W www-. w - w worth $750,000,000 to the men who own it next spring, but it is worth only $500,000,000 to the producers - at present prices?and it is to save to Southern growers and fc> oui Southern country this extra quarter of a billion dollars that the united energies of press and people should now be directed. The fundamental -TV ? _ facts seem to me to be clear: 1.. Cotton, even though the new crop of 1915 has started coming on the market, is still selling on the basis of prices fixed by last year's 17,000,000-bale crop. 2. These prices must soon be ad /.. justed, however, to fit the conditions of a 12,000,000-bale crop (or proba - r\ /\ r\ i-t AAA AAA bly only a iu,uuv,uuu or i?,vvv,i/vybale crop), and this adjusted price ought at the very least to reach 12 'Cents a pound for middling. As briefly now, as clear argument will permit, I wish to point out and emphasize the truth of these, statePments. I.?The World's Demands Justify Twelve Cents, i*. Assuming even a 12,000,000-bale yield of Southern cotton this year fe (and it will probably be less), this t % year's world production will be 3,000,000 bales short of the world's conservatively estimated consump|p; ' tion - during the coming twelve months. That is to say, the world ;k, will consume every pound of this year's crop and 3,000,000 bales of ^ the present surplus. Secretary Hester of the Nfew Or* leans cotton exchange estimates last PA v year's Southern production (not the K|f;A ' commercial crop) at 17,004,000 :V;{ bales. The United States government A' estimate (16,134,930 plus, 791,464 i'7 , linters) is 16,926,349?practically C'" 17,000,000 bales. This was over 2,000,000 bales in excess of the 1913 crop. Now what happened with this jfe , bumper 17,000,000-bale crop in spite & " of all the demoralized conditions of SPlti trade and finance?the crop of which P%r. it was said last fall we should not - export 4,000,000 bales? The facts |fo|*v are that the world used so much of it that the total world's visible sup( ^ ply of all cotton in mid-summer this gfc. year . was only 5,435,168 bales against 3,522,276 bales the year ? . before. In other words, with a 5 5 O'VT , 17,000,000-bale Southern crop to ' V, .handle, the world's visible supply increased only 1,900,000 bales. What is going to happen this year then, ft; with the South offering 5,000,000 or |p? '/ 6,000,000 bales less?and the prof > 1 duction of other countries also de1^ creased? And this query brings me to another point: p - . J3L?The World's Crop Prospects fc- * h Justify Twelve Cents. r ? Mr. W. P. G. Harding, of the fed|pjf> eral reserve board, early in the sumJ mer secured reports from consular officials all over the world indicat^ ' ing a total cut in the world's cotton crop this year of 5,000,000 bales, Egypt and India reporting "radical H-; reductions in acreage." Since that - , time the prospects have further declined. Bg&nr- * But even if we accept this early rtwai-.octimijto nf thp ernn we see that VT Vi ^VAUiiMvv vr *. v**v -w? - - ? / if last year's crop, being 5,000,000 bales bigger than this year's, yet increased the surplus only 2,000,000 bales., then this year's crop will leave % 3,000,000 bale deficit?to be e V' drawn from the surplus. : % The facts are, however, that even Pa 12,000,000 bale estimate for the f South now seems too high. This is not simply my view, but the view of many experts, including so conservative and competent an authority as the New York Journal of Commerce ^ , which has just declared that in view of present conditions, "the yield seems likely to be nearer 10,000,000 than 12,000,000 bales." And now comes the Wall Street Journal itself quoting William S. Halliburton, of Daniel O'Dell & Co., as saying: "The current season's crop may be as low A " A A A A A T*. US 1U,0UU,UUU UciitJS. it is within the reach of present conditions that wre shall see 12 1-2-cent K4- cotton before the end of the season." These two authorities base; their estimates chieflv on condition reports from all over the South, but might have added the further testimony that the South cut its fertilizer consumption this year from 4,431,000 tons to 2,636,000 tons? almost half?and the effect of this cut will probably make itself most evident from now* on as closer scruN tiny is given the fruiting of the crop. The reader can easily see for himself therefore, that if we have onlv a. 10.000.000 bale crop, the factories of the world would utterly drain the market dry, leaving it subject tc such conditions as occurred a few years ago when speculators carriec prices to 17 and 20 cents a pound. And now having pointed out thai twelve-cent prices are justified be cause the 1915 crop is certainly 3,-1 uOO.OOO and possibly 5,000*000 bales ' short of the world's demands, mean- < ing that factories and munition fac- < tories will consume all the present ] yield with the greater part if not j < ! all the world's visible surplus, I al- : ' so wish to call attention to the fact i L that? ; ' III.?Amman Prosi>eiity Justifies ; Twelve Cents. i The American Bankers' associa- tion has just been meeting in Seat' itle, Washington, and what was the i J ' message that the president of this greatest organization of financiers i brought the country? He predicted, | says a press dispatch, that "an al- i 1 most unbelievable prosperity is rush- > ing on the nation," or to quote his < exact words: 1 "When bank reserves, which are ' L greater now than they have ever < * been in the history of the 'country, ' are distributed, the nation will en- 1 joy almost unbelievable prosperity. The volume of money on hand is so 5 .great that it cannot find a natural outlet. The movement of the tremendous crops, with the attendant ] * financial activity, will still further 1 increase the bank reserves." ] And manufacturers are no less op- 1 ' timistic than bankers. The Factory < Magazine, of Chicago, recently took i a poll of 163 Eastern and Middle 1 Western manufacturers as to the t prospects for business in the fall. Forty, or practically one-fourth of < the" total number, declared conditions "exceptional," 23 "fine," or "above normal," 60 "good," 18 "fair" and "fairly good," only seven 1 "dull and poor," and only one "much below normal and very poor." \ Another point not to be overlooked is? ' IV.?The New Federal Reserve Act Insures Better Prices. President Hirsch, of the Texas Bankers' association, told the big , Cotton States conference of Southern bankers in Galveston: "For the first time in the history of the South, gentlemen, the Southern bankers have the financial ability to market , gradually this crop. It would almost appear as if the federal reserve act had been drafted for the benefit \ of Southern producers." Just because the reserve act doesn't give the farmers all the help they need?just because it doesn't take the place, nor profess to take the place, of the much-needed rural credits legislation ?is no reason for denying or minimizing the great advantages it does offer. The federal reserve system does enable the banks in the South where money is needed, to draw upon the great reserves in other sections for c moi-ino- Iaotio r?? tha oniton r>rnn" nr uianm^ iuuuu vu vuV wwvM v. , w- , as Mr. W. P. G. Harding, of the fed- 1 eral reserve board officially $ays: "Banks have now ample facilities * which they have never before enjoyed for rediscounting the notes taken K against such loans, and it is for them t more than for any other agency, to * determine the policy of the South in . regard to the marketing of the pres- ; ent cotton crop." And President Woodrow Wilson in c a letter to Mr. Harding writes: "It 1 is evident from what you tell me, * * f that the country banks with whom the farmer and other producers directly deal can get money at from ' four to four and a half per cent. . . I think that we can confidently ex- e pect that the banks in the cotton States a*nd in the agricultural regions c generally will content themselves ^ with a rate not more than one or F n two per cent, above the rate which they themselves pay." It is up to the banks to Justify this faith ex1 1 ^ J t pressed Dy cue uc<tu di mo uativu. And the crop can be warehoused. s Mr. Harding points out that even last fall the South had facilities for * storing 11,577,465 bales, and these s facilities have been greatly increas- s ed since then. ^ The next thing I probably ought to say is? V.?Twelve-Cent Prices are Justified, Contraband or Xo Contraband. Of the 8,543,000 bales of American cotton shipped, to Europe in the t fiscal year ending July 31, 1915, on- c ly 242,000 bales went to German ports. Of course, there was more that went indirectly to Germany, but We must remember that a consider- , able part of Germany's normal de- y J ' -*Tm n AvnArfnrl f n mana ior uouuu wa,a ca^ui t^u w ^ Germany's foreign trade and that ' this trade will now be supplied by other countries. The contraband or der may almost be termed infamous if England does nothing to compen- ? sate us for trying to make Southern , farmers bear her burdens, but in , < any case to offset the contraband ori der we have (1) the greatly increas- , : ed demand for cotton for war pur* ^ poses, (2) the increased demand for . . American, English, and continental factories that must supply the trade . ' formerly supplied by uerman mins, > together with the fact (3) that Ger5 many is almost sure to buy and store > up cotton right here in America to " hold until sea trade is reopened. I Even with the contraband order in ; effect, therefore, twelve-cent prices t are amply justified, whereas with - open seas to all Europe, cotton would < likely bring 14 or 15 cents. An able and eminent committee Dn arbitration ought to be named at once by England and America, to make a fair and just estimate of the damage in price per pound resulting from the "orders in council" and contraband order, and England should then be required to pay this amount per pound as a bonus to every American cotton producer this fall. 1 confidently believe that if England should change her contraband rules so as to inflict corresponding injury upon any strong American manufacturing interest, some such settlement would be required; and Southern farmers should rise up and demand that the same recognition be given an agricultural industry as would be given a manufacturing industry. The practical lesson clearly taught | by present conditions then is? ? ri.?Farmers Should Hold for Twelve Cents and Bankers Should Help Them Hold. Of course we must be reasonable. Don't expect bankers to lend on cotton not stored or insured, nor expect them to lend the full market yalue. Land-owning farmers of good character who have been depositors in banks, however, will frequently be able to borrow without such restrictions. The thing to do is for farmers in svery neighborhood to organize, formally or informally, for standing together in holding and marketing the 3rop, and find out just what the local banks will do. Last year it was repeatedly stated by the minority of bankers who were willing to lend money on cotton, that few farmers ipplied for such loans. Let not that be said this year. We must keep ^he 3rop from being rushed to market at ni?oooTit nripoc onH that moans that iWU J 14iUU VUMV umvmiuv V?4V?? farmers must avail themselves of all I;he cooperation afforded by banks? for many owners must have advances in order to meet pressing obligacions. And let every farmer remember this: It hurts prices just as nuch for your neighbor's crop to be rushed to market as for your own crop to be. Consequently we should j aave neighborhood action everywhere, with the stronger farmers md plantation owners joining to lelp the weaker ones to hold, grade, warehouse and sell together. Only by the most thoroughgoing I cooperation of all forces can we save I ;o the South the 'full quarter of a 1 )illion dollars of hard-earned wealth 1 hat will otherwise go into the hands " )f speculators and foreign interests. ? tfor must we fail to realize that the worst and most dangerous "bear" of ill, the man we have most to dread ight now, is not* the Wall street >pecuIator-devil who has been so ofen cursed and denounced, but the _ 'bear" farmer right here in the j i south who is willing to prove traitor JJ o the cause by offering to give away he crop at present prices?or the 'bear" merchant or "bear" banker rho forces him to sell. Yesterday norning's repprt of the New York :otton exchange, for example, an- M lounced that prices would have gone Ca tigher the day before but for the act that? "Some of the reports received rom Georgia and Alabama predict:d that farmers would sell freely at jy light cents." Jjj And again in the earlier reports ?f the New York cotton exchange ust two days ago we also read that I irices would have gone higher but I 'there was more Southern selling." I Pour Pinal Suggestions. I Let me conclude this argument for I welve-cent prices with four specific g uggestions: I 1. Let press and people spread he news that the crop is really I hort?certainly 3,000,000 and pos- I iibly 5,000,000 bales short of the I vorld's needs. I 2. Hold for twelve cents without I >orrowing if you can. But remem- m >er ''it is committing business sui:ide" to refuse to borrow if you can ^ hereby hold your crop. 3. Not only should cotton bring I welve cents but cottonseed prices should break all records. Our ex- I lort trade in cottonseed oil has | lumped over sixty per cent, in one 'ear?from 192,000,000 to 318,000,)00 pounds. And if good prices ? were paid for seed of a 17,000,000 g irop, what sort of prices should we g lot demand for seed from a crop of inly 10,000,000 or 12,000,000 bales? LA 4. With $500,000,000 for her new pc lotton crop, the South will barely gu 'pay out." With $750,000,000 the whole section will have a jubilant ? md abounding prosperity. BankiT'c? mornimnts and all classes, there Tore, should join our farmers in the of fight for twelve cent prices now and for a State warehouse system in ev- 'n^ srv State to help insure fair prices in future years.?Clarence Poe, editor of the Progressive Farmer. A Real Symphony. |^| Music Teacher?What is your im- pr pression of harmony? foi Smart Student?A freckled faced ^ girl in a polka dot dress leading a r coach dog.?Judge. Ca % I ilm vmir h uiu; VHl V! With the Farmer Jones A. Wil Bring Your Wheat z and Get Flour an 'X - \ i Farmers, Don't Forget * s . ___T E. H. HENDESRON i1*? Attorney-at-Law _ _ BAMBERG. S.C. IH 1^ M M I neral Practice. Loans Negotiated. * * < IFE, FIRE, LIVESTOCK 1st PRIZE-Set HEALTH and ACCIDENT 2nd PRIZE?9 : INSURANCE ? . . ?? SuP?Br ^ZZn,co Beginning Sat n Save you Money on Tombstones. I a ticket \ W# MAX AVALICER with each d0nar purchase < EHRHARDT, S. C. gjven each dollar pa ^ ^ v: 15th, two prizes will be gi I Prizes Are Now on Display Best material and workman- || ship, light running, requires I These prizes will be giv* little power; simple, easy to I necessary is to purchase Wa handle. Are made in several 11 The merits of these goods sizes and are good, substantial I used them. If you have no money-making machines down I about our goods, to the smallest size. Write for I catolog showing Engines, Boil- B ers and all Saw Mill supplies. I I W.H.CJ LOMBARD IRON WORKS & I Watkln's Salesmar SUPPLY CO. Augusta, Ga. I / B PORTABLE AND STATIONARY I IMP I NFC I 0nAcco<u,tc anPbLHJ " Our Stores aw, Lath and Shingle Mills, Injec- I srs, Pumps and Fittings, Wood I AM CATIIPAA1 aws, Splitters, Shafts, Pulleys, I Ull uAlUlU/nJ letting. Gasoline Engines H westock LOMBARD I ? w"" IH. KARESH, Ehrbardt, AUGUSTA, GA. | LODG IXG- I EHRHARDT BARG/ Rnmhere' Loriee. No. 38. Knight? | Pythias mf-ets first and fourth j )ndav nights at 7:30 p. ra. Visit-] % brethren cordially invited. , f. c. AY---?"--er' GROW CAB Keener of Records and Seal. ! j I H WHEN PRICES ARE HIGI I ^ ALfll^ 0 PAllA_ I of North Carolina the finestlot of CA1 01Q r IQ fll l.nillQ JO. PPl/Pl I shipment during September and Octobei Ifllullfl Ul U111110 w 1 UVul I and hardy and can stand the effects of tl xt ??? . j u l We have only ,ne variety, viz., THE Fl escnption No. 666 is prepared especially ! given us satisfaction, set during Septem MALARIA or CHILLS & FEVER. | I ve or six doaes will break any case, and ; I MEGGETT PRODUCE CO.. (The 7( taken then as a tonic the Fever will not ! Wt ataomw cabbampum urn. It acts on the liver bettei 'than ilomel and does not gripe or sicken. 25c HHHHHHHHHI t otton > ri i s rneno liams $ \ * . / > md Corn i ' * "/ >. ' id Grits. : < 7V1 3SI ' if ' I > - 'ft * AS S$ 4 ; Your Friend ' ) ' . \ . : ' ' -C': - '$n m ?? . ' . t ..v - ; _ I CDCCft [ rKLL!! :* v * t of China Dishes x 12 Art Square . J ? ' urday, August 21st VIEL BE GIVEN ' of Watkins' goods. Tickets will also i yment oil old accounts. On December ven to persons holding certain num ' 1 at G. 0. Simnons's Hardware Store ' < i in away absolutely free. ' All that is tkins' Medicines and household goods. ? are known to everyone who has ever, t been a customer, ask your neighbor .k" , ! _ -iANDLER i Bamberg, S. C. 1 . >f Religious Holiday, Wl Be Closed I, SEPTEMBER 18tl r S.C. H. KARESH, Olar, S. C. ! I UN HOUSE. Ehrhardt. S. C. - I | KflK F to supply your home I { m~a * mm market during De- I cember and January I H. We have growing in the mountains fl 3BAGE PLANTS that has ever been grown for .% and being grown in that climate, they are tough ie hot sun better than any other plants you can get. LORIDA HEADER. The only cabbage that has I ber and October. Prices, by express, f. o. b. Horse 5000 to 8000 @$1.25 per 1000; 10000 and over, $1 per rices by Parcel Poet, 85c per 100. Address orders to H) Acre Truck Farm) YONGES ISLAND* S? C? I . -? M.M. u k..1?4I fl ? HIpiif% inim nwviuvvi w __ jf 0 * \ 1 - - .. .. . . ,.- y" ,.' [ 'i... .;