Weekly commercial herald. (Vicksburg, Miss.) 1884-18??, 1886-04-16

Bradstreet's.
The changes which have taken place
in the marketing Of the cotton crop of
the Southern States during recent years
have been of such Importance as very
largely to revolutioniZe the business.
The changes referred to have not been
confined to the handling of the crop
proper, but have affected things from
uefore planting TO the point of con-
sumption. 1t is impossible, within a
small compass, to follow the matter 80
closely as TO trace the staple through
all the various stages. The present
article aims TO deal only with the
changes which have occurred during
the past decade ia the movement of
the raw product from the hands of the
country merchant to either the do.
mestic or foreign mills.
The necessities of the South after the
Wal closed were such as to call into
prominence a class Of business men
who until the period named were of
secondary Importance. Reference is
made TO the country merchants" to
whom the average planter now mort
cages his crop before obtaining the
supplies needtul for beginning plant
ing. The country merchant, on whom
the planter is dependent for the means
with which to RAISE his crop, is in turn
dependent upon the larger ports for
money with which to move the crop.
The system of interior buying which
became general throughout the South
about the year 1875, although previous
ly of considerable volume, first began
TO change radically former conditions.
The LHuence of the railroad and the
telegraph in the South upon this move
ment has been to give IL an immense
impetus, and the consequences are to
he seen in the decreased amount of
business done by the exchanges in the
various ports North and South.
Inc chief decrease is in the spot
Sales made on the exchanges. The
decrease in the amount Of cotton COM
pressed and otherwise dealt with at
the ports was of curse large. The
system of through shipments both to
domestic spinners and for foreign ex-
port. while causing the ports TO
ostensibly show large receipts, was
another link in the changes. Special
Inquiries made at the primary points,
at the ports and in New England have
enabled BCadstreet's 10 get together
sufficient information to throw much
light on the new methods and direc-
lions, and will furnish TO thoughtful
people food for reflection concerning
the future handling and movement OF
this great product. The facts adduced
seem TO show that the increase of the
interior buying during the past few
years has been immense, and the system
has gone further and further into the
country, till now the little town con-
tanning "a country store is visited
yearly by cash buyers.
The buying is mainly from country
merchants and storekeepeTs, as the
number of planters of sufficient means
TO deal directly with the buyers is as
yet limited. The extent to which in
terror buying is governed by official
exchange quotations is stated to be
problematical, some towns reporting
adherence to such prices and others
systematic cutting, Competition be-
tween buyers is present here as in
other business, and the effect of such
rivalry is evident. The system, while
productive OF considerable loss in
some Years from reclamations and
from the occasional sharp practices of
irresponsible buyers, is Stated on the
whole to be productive of much good
to the sellers OF cotton, and the fact
that the system is extending every year
would seem to indicate that the buyers
are not dissatisfied. The effect upon
the business done by the ports of this
system is shown by figures given below,
and all indications are toward a con-
tiuuation of the tendency to buy the
cotton itself close to the place of
growth. The effect of this system and
of cotton trade depression upon the
value OF memberships in the large
cotton exchanges is also shown below.
1t is rather u%ntavorable. The bylaws
relative 10 commission on the various
exchanges are also credited by trade
authorities with part of the decline in
value of the member ships SHOWN
above. That the greater part OF the
speculative business III COTTON will re-
main in the large ports seems probable
and necessary. the view taken of the
subject by the mill treasurer of New
England is shown at length in another
column. With some the opinion is
entertained that greater risk Is involY-
ed under the present system, and that
trouble from errors in grading is a
necessary incident. With Others again
every change which has taken place
within the last decade is looked upon
as a distinct step forward in the direc-
ton Of progress.
The sending of cotton buyers into
the interior, shipping cotton they buy
on through bills of lading, avoiding
heavy charges at the ports. has cut con
siderdbly into business formerly ex'
clusively enjoyed by those ports. The
increase of steam congresses in the
interior, and the saving in freight thus
made, deserves to rank as one of the
- - = - II -