The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1892-04-14
THE COTTON TRADE.
A Snnguine View OF the Prospects OF the
Staple.

1t is believed by many well-informet
dealers in cotton that the true solution o
the Southern situation is to be found il
the cheaper and cheaper annual produc-
tion of larger and larger cotton crops IN
til the United States, with cotton at 4 OF
5 cents pound and crop of twenty
million bales, will have starved out the
cotton growers of all other countries and
will hold the monopoly of production fol
the whole world, which will keep pace
with the yearly increasing consumption
The Ne,cs and Courier has been requested
by one of the Charleston factors who
holds these views to publish tho follow
ing paper from the annual statement Of
the Memphis Merchants Exchange,
written by G. P. Hunt, of that city, on
February 90:
"a careful review of the movement and
prices of cotton since the frat of Septem.
Der will, We think, furnish food for reaec'
tion, not only to people directly interest
ed in the trade, but to all those engaged
in corelative and collateral pursuits. A!
the beginning of the season, or say on
the first of September, 1891, middling
cotton was quoted in the principal mar
kets of the world as follows: Liverpool,
4}d; New York, Sic; New Orleans and
Memphis, S1c. Since that date prices
have continued to decline, and to-day
Liverpool is quoted 8 II Is; New York,
7 16: New Orleans, 81, and Memphis
81 for the came grade, showing an aver.
age decline Of about two cents during the
time mentioned.
"That the price is very low-possibly
below the cost of productions conce-
ded, and the cotton wisescres of the
world, and those most affected by the re-
suit, are busily engaged, not only in solv.
ing the cause, but in trying to find a rem.
edy that will effectually cure the evil.
By most people over-production is as
signed as the sole and only cause Of The
present depIorably low prices, and Con-
ventions of merchants, planters and AL.
liancemen are being held all over the
South for the avowed purpose of induc-
ing smaller acreage and lesseniug prt-
duction.
"Thst over supply is in part the cause
of the depression re admit, but it is Ger.
tainly MT The snle and only canse, and,
in our opinion, it has only accrutuated
and accelerated n declii-, which must
have trsnspired in any event In periods
of great financial distress. ur national or
sectional disaster, those who suffer .eem
satisfied to trace their misfortune TO some
one conducting cause, and seem to forget
that b combination of conditions may ex-
ist, al Of which have con.pired TO the
general result. Such, at least, in the
present instance, seems to have been the
case. Following four years of financial
and commercial activity came the disas
trous cotton season of 1S9O-91 Prior to
that time, aud beginning in the spring of
1886, there arrived period of prosperity
and buoysncy such as the world has rare
ly seen. Coal, iron, grain, cotton, atocks,
bonds ard real estate all participated in
the general elation. Gigantic enterprises,
speculative and commercial, were inaug-
urated, and in many instances successful.
ly concluded. Success enthused the COM
mercial and financial element to the ut
most verge, and speculation was rampant
throughout the world. Old liaea were
abandoned, and new and more specula-
tive methods prevailed. Foreign capital
bought out the stock yards Of Chicago,
and the beer breweries of Milwaukee.
New minea were developed in Alabama
and Tennessee. Coke ovens and rolling
mills we're erected all through these
States, and new cities sprang up from
abandoned old fields as if by magic. The
capital of the world was taxed to keep
pace with its enterprise, and initiation and
speculation were the order of the day.
Even prudent, conservative English bank.
ers caught the contagion and, no longer
satiefed with legitimate 8 aud per
cent. on undoubted cullsteral, advanced
millions Of pounds to wild cat South
American republic on wildcat securities
and at wild cat rates.
"Thus we're millions of money with
drawn from the legitimate channels Of
trade and placed in the possession of wild
| gaucberos aud adventures, who do not
lend money for any purpose whatsoever.
Such condition of affairs could have but
one termination. The bubble had filled
to imitation and it burst. This transpired
about the beginning of 1891 and since
then has ensued a period of liquidation.
Coal, iron, cotton and securities of all
kinds have felt the effects, and we are
now suffering pour cause Grain, owing
to famine in Europe, big demand at
high prices and an abundant crop, has
alone escaped the genera! shrinkage in
values.
"The decline in Cotton, superinduced
by the causes mentioned above, has no
doubt been intensified by the enormou.
crop and abundant supply, but to entire
ly eradicate the cause Of depression We
must look beyond q mere question of re.
duced acreage. Tue Southern planter i;
fitted by nature, education and surround
ings to plant but une crop to any extent
and that is cotton. We say to him
therefore, raise all the grain, meat, vege
tables, ETC., that you may need for home
requirements. Place yourself absolutely
independent of Northern hog and grair
growers, and then plant all the cotton fol
market you possibly can. You have youl
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