Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1895-10-23
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RODDEY ON COTTON.
now TIE FIRMERS SHOULD I'M
PROBE THEIR ADVANTAGE.
DON'T INCREASE THE ACREAGE.

But Somewhat Risky.
For the Yorkville Enquirer.
TO THE SOUTHERN FARMER The
cotton situation at present is, to say
the least, disturbing the rest of many
professional "bears'' who make it a
business of selling the South's princi-
pal product short, and forcing many
Southern planters to sell their crop,
regardless fprice either through ignor-
ance or poverty. 1t is very gratifying
to know that the farmers are becom-
ing educated to the condition of affairs
and are raising their necessities, and
the professionals, who sell cotton
short, are having to pay, and dearly
too, on account simply of the more
independent condition of Southern
farmers from financial standpoint,
and their knowledge of the system
by which they have been systematic
ally robbed for so many years of the
profits on a product in which they
have a practical monopoly.
There has been no overproduction
in cotton, and the demand today is
enormous. There never was any bank,
corporation or individual, who con-
trolled 50 per cent. of any stock that
had nothing to say about the price,
except the Southern farmer. You
raise 80 per cent. Of all the cotton that
enters into the manufacture of cotton
goods. Many wealthy men who have
probably never seen a cotton field
have sold short, and when, by the
time the crop is gathered, you have
sent it into the market with no sys-
TEN, regardless of cost, and uncon-
sciously made enormous profits for
them with which to continue their
operations; but l am very thankful
to see the Southern farmers thinking
more, studying the condition of affairs,
diversifying their crops and being
altogether in q more independent po-
sition.
Many professionals say, "Why you
can raise cotton for 5 or 6 cents. "
Well, what if you can. Will you
always sell your products for cost OF
production Suppose Southern mer-
chant should come on to New York, OF
anywhere else, to buy his goods, he
should price from dealer, hats at S18
per dozen. If he should say those
hats did not cost over 50 to make them,
and I will give you that, he would re-
ceive reply that it was none of his
business what they cost you take
them at that price or leave them.
Would that you were in such condi-
tion to say, "You can have my cotton
at 10 cents or leave it )" and yet you
have more of a monopoly than any
other people and make less use of it.
When a farmer writes that he can
make cotton for to 6 cents, he is a
hindrance to progress. Why2 Be-
cause the professional hears will see
that such a statement is copied by
every newspaper in the whole country,
and while his vanity is gratiied, still
he does irreparable injury to poor
farmers sons, who cannot be expected
to get an education when they receive
no more for their product than it costs
to produce 1t. Ofcourse some farmers
have the advantage over others
credit, quality of land, etc.-and while
they might manage to live fairly well
at one price, others could no more
than exist.
There is no question but that the
demand for futures establishes the
price of spots, and that all spot buyers
in the South buy and sell according to
the rise and fall of the future market ;
but q seller of futures will be careful
about selling short if he sees you are
in an Independent condition, and will
not let him have your cotton for any
price he may say. If you have no or.
ganization, no system, and decide to
sell it as soon as gathered, of course you
can only expect what they will pay.
Suppose the stockholders of a railroad
or any other corporation would try TO
sell the entire stock within six or
eight months and the public knew OF
it; do you not know that they would
realize less than if marketed by degrees
and with some system? Why does a
professional operator take the bear
side? In the first place, there are
from 1000, ITO 100000 bales spot
cotton to be marketed, and many spot
purchases will be hedged by selling on
the exchanges, which will help profes-
sionals depress prices, and then the
knowledge ofy your marketing your cot
ton at a certain time, regardless ofcost.
A well posted man knows how much
will have to be delivered by certain
length of time for purchases of fertili-
zers. He also knows and studies your
financial conditions. If a certain num-
ber of liens are recorded and due a
certain time, he can easily ascertain
how many bales of cotton it will take
to pay off these accounts, which are
due at certain time, and nearly all
before January 1st of each year and
knows you will bring your cotton and
must market it regardless Of cost by
the time your paper is due. In Other
words, the worse your financial condi-
tions are, the better condition he is in
to squeeze you. But the principal
advantage Of the bear is in the carry
ing charges. IF an operator sells
short, if he has the money to margin,
he need never lose Il cent !; though he
might have to stand by it for several
years. For instance, an operator sells
January cotton short today at 9.3S
cents. The differences between the
months average-6 points, or 70
points per year, or 432 points for six
years. 1t is equal to his having Janu-
,r,, ootton cbort civ yaorS from tOday