The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-08-19

Sweat
Guthrie, o. T., Aug. 1s.-Today the
Guthrie Leader has the following:
Cotton picking opened up in earnest
yesterday and every man, woman and
child in Logan or Lincoln counties who
really wants work can get it. Cotton
growers are seeking everywhere for help
and the demand is not supplied. In
one section of country fifteen miles eas-
of this city there are over eight thou-
sand acres OF cotton and several hun
bred hands will be needed in addition
to every available person IN that vi
cinity"
But the people are not picking cotton;
they are also watching the course on
the market. There is a story out that
high and fly times are coming for cot
ton. An eastern dispatch says:
FURRY Is EXPECTED.
There promises to be an immense
speculative movement in cotton on
American and probably European ex-
changes during the next few months
and ri is more than probable that the
market will be more dangerous and ex-
citing than for several years
In the cotton situation are already
interested powerful factors, which have
hitherto been unknown TO speculation
in this commodity. Recently when the
United States gold reserve fell so low
as TO almost precipitate serious trouble
syndicate Of leading eastern none
tary interests, dreaded by J. Pierpont
Morgan, advanced enough gold TO the
treasury to make good the reserve OF
Of 500, 600, 900 and then to prevent tenn
porarily the flow of gold to Europe
this same syndicate threw out on the
market s6xty-day sterling exchange 10
the amount of 5000. 900.
1T was announced that thes indicate
expected 10 cover this exchange by
means of the annual fal of cotton ex-
ports. Otherwise 1t VIII be necessary
TO redeem this exchange in gold before
the first OF November next
1t is necessary now for the syndicate
to force an early and free export move
nIenr Of cotton 10 protect itself. To
make sure of rapid and prompt move
ment of American cotton the syndicate
VIII use every means in its power to
bear the price 10 such a figure that the
crop will be eagerly bought up by En-
glish and continental mills.
las an important addition to the syn
dictate forces, it IS stated, on good au-
thority, that IL has taken into partner
ship the two great cotton handling firms
of Amerfca-Inman Co, OF the south
and r. T. Wilson Co, Off New York
whose influence in the cotton world is
all powerful, and who have at their
Command unlimited millions in ready
money with which to handle the cot
ton crop.
IN order TO understand how this
combination can force the free and ear
" movement OF cotton IL is necessary
TO explain how they reach the producer.
The cotton grower has for years rails
ed his crop on borrowed money secured
from an Intermediary known as the
cotton factor, VINO took a mortgage on
the growing crop and held the grower
so tightly IN his grasp that the cotton
factor could at any time force the
grower to sell HI, product, realize, and
settle ID.
IN his turn the cotton factor secured
his money from the southern banks,
and occasionally, in cases whore fac
tor was handling a vast line OF bust
ness, from eastern banks.
1.-The southern banks in turn again
always have depended on the New
ork banks to a lesser degree, for mon
ID TO advance 10 the factors.
'In order 10 force an early and free
movement OF cotton for export it will
pc an essential that the price shall be
very low. To keep the prices Of cotton
Town every effort Of the eastern banks
he southern banks dependent on them,
md OF the cotton factors VIII be di-
ected for the next few months.
1T Will be the policy OF the eastern
sanks 10 call their tdvances to the
southern banks and force a money
,trin gency in the south, while the south
I'm banks VIII in turn call in loans to
he cotton factors, who viii, in self
defense. force the growers to sell their |
cotton and settle uD.
'In obtaining the aid of Inman & Co. |
R. It. Wilson & Co. the eastern banks |
lave secured Invaluable allies Both |
iTms have widespread dependent Eu- |
,opean conectnions and both are heaV- |
" interested in transportation compa- |
lies, both rail and water. which rely |
n cotton traffic for their main tonnage.
They viii always. in any season, under |
ny condition. cut an important figure |
n fixing prices, and in such an alliance |
s the present one, with the backing |
{ brings them, VIII be almost all pow |
rfui
There have been however. important !
Ranges in the condition OF the south
IN cotton planter. which the eastern |
money syndicate may have unieresti- |
mated The panic of 1894 resulted in /
refusal of the eastern banks 10 send |
money south as freely as as they had /
zen in the habit Of doing. and as q |
result the cotton factor was /
-ompelled TO almost entirety curtail |
ia advances to the coton grower.
This resulted in the cotton grower
reducing his crop practically unincum
cred With indebtedness. and as the
Uop was one OF the gres test ever known |
n the south. The planter. despite the
ow prices which prevailed as con-
OF overproduction, was forced
nto condition of prosperity which
lad not been known south since be-
ore the waC.
''HaVTn once raised and marketed a
rop without the financial as5 of the cot
on factor. the southern cotton growers
o an almost universal extent boarded
heir money and repea ted the operation
gain IN 1885. Only those planters VINO
Y reason OF deficits in years prior 10
Ss4. or who were recklessly exsraya-
ant in living, Or mex men Just start
ne out. were LETT for the cotton factor
0 prey or. Tor be L known the inter
81 secured at high legal rates. exorbs-
ant Submissions. and DOWNRIGHT
sury. or il. fabulous prices charged
OF supplies. made the profits for the
otton factor reach percentage figures
rnich would dazzle a Clark street
awn-b-oker.
Again n 1856 the great mass Of the
ou1leg-n cotton growers are producing
crop unincumbeTed with indebted