The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-09-17
COTTON.
Some Comments on Points Of Cur
rent Interest.

the condition OF cotton as ooos as against
sci the month before.
This was a general surprise to the trade,
which had calculated rather gain. 1t Is
hard to conceive when the deterioration
took place From Texas, especially, the
General reports have been really brilliant;
fhe crop there seems very large beyond all
dispute, aud yet the government says the con-
dition is 81. 1t is no exaggerAtion TO say that
the cotton trade quite diScredlts the Texas
condition at least. The writer believes the
average condition should not be put below
90 Without presuming an attempt at
estimating the croT thus early, IL may be
sad that this would indicate acrop of about
Z 600 900, calling the acreage increase 3 per
cent. this supposed yield TO be increased or
lessened according as the weather conditions
may be favorable, or the contrary, from
Sent | to the close OF the picking season.
The mast two weeks have been critical ones,
and The average influences certainly seem
To nave been rather favorable than other
wise.
THE PRICE.
II therefore is the most obvious fact in
the whole business that there is but one
thing for prices TO do-of course they will
have to decline; anybody can see this. The
market will not be able to hold mp under
fine pressure of so large crop. However,
II is generally well known and established
nv long experiences that whenever specu-
lative commodity seems absolutely Obliged
70 90 ND or to go down, it is pretty sure to
90 the other way. And SO it may
be with cotton this year. The cause
will probably be the universal short
selling INDUCED in by the outsiders" that
il the south Tor the most part; and large
short interest, once it is made, is enough to
keep almost any market firm The bulls
are aided of late by the public crop report
thew NAV succeed in making the shorts
uneasy, and thereby establish temporary
advance. on which the south can sell the
bulk Of the crop. But If the southern idea
of the crop is correct, and If we have q
favorable fall we are almost sure to have
materially lower prices in the late winter.
THE ALLIANCE AND THE BAGGING.
Our friends, the farmers, have got them
selves into no end of difficulty in their
efforts to fight the jute tagging trust OF
course the farmers nave the sympathy of
the cotton trade, but it is hard to see what,
if any. advantage they have yet gained, or
can be reasonably expected to gam, by their
Dresent methods. So long as their actions
axe irrational, they will harm themselves
more than the bag ging trust. On the ques-
ton of tare they have got themselves in
volved in an utter confusion. They are
hugging each other over a sup
Dosad mastery stroke IN deciding
that hereafter they will not accept
pay for the tare-that is, the bagging and
ties By voting to increase the tare six
pounds per bale they find they have
gained" another loss of 90 cents a BALE
Upon a tare allowance of twenty-four
pounds per bale the farmer gets 50 40 less
for every bale he sells. To offset this the
price must be raised oae-half cent per pound
By an extraordinary mathematical process
they figure That this taking off the tare will
increase the profits of those whose receipts
will be just 5 per cent. less, unless they sue
coed in advancing the selling price, IN
Guiding the New York and Liverpool mar
kets perhaps, an equal proportion.
The trouble seems to be the graceful ease
and facility with which cur agricultural
friends pass resolutions. In the language
oftAe scriptures, many are passed, but few
are enforced. They get together, state
their grievances and then proceed to pro-
mitigate iron-cad resolutions of the most
formidable type, announcing their inten-
ton to revolutionize the worlds cotton
business, and frightening the poor factors
and exporters half to death. In conclave
assembled, they decide that not bale shall
be wrapped in jute; they go home, and four
out OF five bales, perhaps, come in jute
bag0ing. They meet again, worry Seq
tember shorts by informing the world that
nOU a DdIS Will 10 S9lI III foepUSUlu0Is 6AC5DL
etc They dispense to their homes and i'm
nlediately ship to market two for every one
last year.
But this tare business is the worst vet.
Why eau they not go ahead and protect
their own interests by the best means in
their power, leaving these details of market
ing to their agents, the factors, who can
better COPE with such questions!
A SUGGESTION TO THE ALLIANCE.
1t is, however, in the power of the farm
ers' alliance 10 do a world of coed to them
selves and the south. But it will require,
besides tie easy process Of passing reso-
luton. the discrimination and the ability to
compel obedience to do it. Let them effect
better organization, one that will insure
effective cooperation, and they will open
a gold mine, which will make the south
what it ought to be, the richest section of
these United States.
The benefits which a country derives
from its productions is not measured by the
value of such productions, but by the net
profit after deducting the cost of producing.
1t a cotton crop brings $3.50 600, 900, and the
cost of max ng it is $500, 600, 600, the south
is profted $50, 1905, 000 If it costs $400, 600,
900 the south loses 50,000,000.
Let us suppose that the world will use 9
crop of 100000 bales at 10 cents pound
and that the cotton costs to grow it cents
u pOdHus LUZ COliNSulSHC0 buSli, CdlllIS Ui1e
avera weight 500 pounds, this represents
a profit to the south of $70,000,0e0 Now
suppose we made land planted for) s, 00O,0 0(
bales; we would probably not got over {
cents for it, and perhaps less. But as il
cost cents to MAKE it, although tAe south
would receive 1920, 900, 900 for the crop, the
profit would be nothing, as it would cost
just that amount to raise the CROP
On the other hand, suppose they only
for nd IF
600 bales. On this, the price would ubt-
less rise to about IL cents, and perhaps
more. This crop would therefore bring
S36O,000,000, and would only cost S24O,.
OOJ,OO0; so that the net profit to the south
would be $120,000,000.
These figures are correct, and the argu
ment is all right. The depression ofprice
on over-production, and the advaree or
scarcity, are considerably more than in
direct proportion. This is a well-inowr
economic principle. Nor is this all.
The surplus land could be allowed b resi-
and thus become more productive, orbetter
Stlll, could be employed ia raising food
crops, so that even a larger proportion OF
the amount received for cotton would bs
net profit. Such points as this are hose to
which the farmers alliance shoul devote
It's attention.
As stated above, strict unity f actor
would be imperatively Necessary. If al
over the country farmer here and there
would say, 'Well, my neighbrs are al
planting less cotbon-the crop i going tC