The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1891-10-08
STRONG ARGUMENT.
Showing the Faults That Surround the Aus
tin Cotton Market.


2 We are specifically an agricultural
= community, and cotton the prime de-
| pendence of each individual. Short
crops come upon us at intervals and
, cannot be prevented, but whether the
, yield is abundant or slim, whether
the prices are high or low, gathered
and ready for market, it is our duty
to see that like or superior induce
ments are offered so we can at least
compete with the small neighbOring
towns that successfully attract and
practically reap the benefits which
arise from the marketing of our field
commodities. There is no preteXt for
Austin, with her commanding po-
sition and unoccupied wealth and
credit, in permitting herself to be out
stripped by roadside hamlets; only a
movement with the right head is
needed when we shall see falling in
all along the line. Our business men
hardly take the trouble to
INVESTIGATE THE CONDITION
OF our cotton market, matter of self
interest to themselves, an interest
which affects the well being of our
entire population. We hear of the
satisfactory business our jobbers are
having with the country merchants:
that country collections are good and
the city retailers are overlooked in the
observation that the country is in bet
ter condition than the city. 1t may
be stated as a fact that our retail
trade is languishing. The failures we
have had are the direct effect of COM
mercial inanation, and never before in
our history has there been so many
declarations of voluntary liquidation
on the part of this trade in it's various
lines. In past seasons it was limited
and now the question is openly asked
if we have cotton buyers combina-
tion that fixes prices daily at figures
lower than are offered in the neigh
boring small towns? This question no
doubt will be met with stout
denial, but the strong reason for rails
ing the inquiry remains, based on cir
cumstances that would be excellent
proof in judicial investigation. A
seller may hunt the town over on
given day and he is offered the same
price generally from every quarter.
fVha ui1r II Low
ally higher at the outlying town.
These circumstances are sown broad
cast by the farmer, who has met this
experience, and we know cotton is
hauled three and four times
THE DISTANCE TO AUSTIN
in search of a competitive and active
markets. This state of affairs is not
at all remarkable, affording merely
the common example of the difference
between combines and competition.
Knowing the injury that must result
to him when a combination fixes the
price of this commodity, the seller, as
matter of protection, will give the
arrangement the widest margin of
distance in his power. 1t is the talk
OF the farmers what a poor cotton mar
ket Austin is; our city people talk of
our diminishing cotton receipts and
wonder. So little cotton is brought to
this market that outside buyers give
it little or no attention, while the res
ident buyers, generally order buyers,
have free field and occupy the posi-
ton of commanding both sides of the
situation. They are not to be blamed |
for this; every man will make the |
nf hi lt1ci -, 49,
The charge can be laid to our COM
mercial conditions and methods
which
ARE SINGULARLY AT FAULT.
There is a variety of active compe-
tition at points which handle the cot
ton that in the natural and business
order of things should be marketed |
here. There they have buyers actually |
competing against each other, and .
then the merchants of the town step
in as competitors, who, as a general
thing, are the successful bidders; the
result being the merchant while look
ing after the account of the farmer he
has been credlting also forcing up
prices to market value, is posted on
quotations and demand, and if the
piolOoolondl uuy VI uOeS uOJ give MIN
market value he arranges to ship on
his own account To obviate the pre-
dicament Austin has been placed in
as cotton market, the business meth
DDS that will not do in the cotton belt
must be laid aside; the way in which
the country merchant cultivates the
farmers trade as outlined in my COM
munication in last Sundays STATES
MAN furnishes an example. Induce
ments must be offered the farmers:
their confidence must be restored, the
same facilities for trade and barter
must be extended that they have been
receiving from country merchants
since they have grown strong enough
to do carrying business; they must
be persuaded by actual demonstration
that Austin is an active. competitive
cotton market. MERCHANT
PUBLIC WAREHOUSES;.
A Better Though Lame Substitute for the