The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-10-07
LOOK NORTH FOR MONEY
THE NEW YORK MARKET DOES
NOT WISH TO BE "RELIEV-
ED OF THE STRAIN"
MUST HAVE RADICAL CHANGES
In Our Financial System II We Ever Emancipate
the South From Industrial Slavery
They Are Coming to It.
charleston News and Courier.)

They Are Coming to It.
Charleston News and Courier)
In an article, published in the last num-
Der of the Textile America, Mr.. Alfred
B. Shepperson says that many farmers
have been surprised that the great staple
(cotton) has not kept company with the
sharp advance which has occurred in
wheat, corn, provisions, etc, or re-
sponded to the better feeling and mod
crate advance in this country in cotton
goods" 1t is not surprising to those who
know how the cotton market is manipu-
| lated for speculative purposes, year af-
ter year. 1t is not surprising in view
of the statement recently made by Mr..
| George S. Coffin, assistant comptroller
of the currency, that not more than one
| ninth of the entire crop remains in the
section where it is grown, and that the
marketing OF the crop is dependent upon
| the advances made by the money-lenders
of the North and East. Between the
bears on one hand and the bankers on
the other the cotton growers lot is not a
happy one.
From July / to September 1, middling
cotton was selling in New York at an
average price of s cents a pound. On
| September %, middling cotton closed in
New York at 6s4 cents against S14 cents
on August 80. 1.-THE market for spot
cotton here" says Mr.. Shepperson, dur
ing the week ending September 8, was
| purely artificial. On August 80 the
price was advanced 3-16 of cent, while
the sales for the day were only 20 bales.
| The next day there was a decline of Il
Of cent on sales Of q bales, and by
| September3 the price had declined %
of cent additional, making a decline
| from Tuesday to Friday of "a of q cent
pound. Cotton is not dear at present
prices" Mr.. Shepperson concludes.
] ut has not been SO low since May,
1895, the season of the great depres-
| sion in cotton. / think that spin
ners can now manufacture it at a
| fair profit. 1t may go lower and the
| prospects for an immediate improve
ment are not encoura ging, but from
its present price it would jump by
leaps and bounds should unusually
early frosts occur Those
who wait for lower prices in their
anxiety to secure their cotton at the
very bottom may find their plans
upset by sudden and severe frosts
and be compelled to pay we'll for their
cotton-and experience. The crop is
far from being secured. Its extent
and its quality will largely depend
on the weather during the next six
or seven weeks Frosts will re-
duce the yield, and frosts and rain
| will iniure the quality. The pres
| ent receipts are excellent, both as to
| quality and staple and spinners need
| not be afraid to buy it and put it
away, for there are far worse invest
| ments than actual cotton Of good
| grade and staple at present prices.
| Those who entertain the idea that
cotton will fall to the low prices Of
the season of 1S94-'95, are hugging
vain delusion. The conditions are
essentially different, and / never ex-
| pect again to see middling cotton sell
| in New York for GIG cents, which
| was the price in November, 1894, and
| in March, 1895. 1t is we'll to remem-
Der that in April, 1895, it had ad-
vanced ~ cents, and in May adj
| vanced 70 cents more, making an adj
| vance of nearly two cents in two
| months"
| But suppose the price of cotton should
Jump by leaps and bounds" and in
April and May should show an improve
ment OF two cents, or more, pound, Of
what special benefit would the rise in
price be to the people who make the
cotton. or to the South, where the cot
ton is grown? In the conditions, the
cotton producing region would not share
in the benefits resulting from high prices
next April and May. Comparatively
few cotton farmers are in q position to
hold their cotton for better prices. The
crop is practically marketed within
period Of FIVE months. The cotton passes
| out OF the hands Of the producers as
soon as it is picked, ginned and b4led,
ana at the end OF the year many farm
ers nave nothing to show for their years
LABOR but pieces of PAPER, showing that
uhey nave paid this or that merchant
so niuch on account" or his note in this
Ut that DahK mas been cancelled or re-
he"eo LOT smaller amount, and the
lower the price for which his cotton ;s
sold the larger the amo n t of his renew.
al. Under the present financial system
by which the circulation is restricted
to go cents per capita in the cotton
States, according to the estimate of Mr.
w. X. Trigg, of Richmond, there is no
help for this part of the country. In
his argument showing the necessity for
an elastic currency, Mr.. Coffin says:
"If any plan could be devised un-
| der which the Southern banks could
issue additional currency equal to
| one-fourth of their capital stock dur
ing the cotton season, it would be a
God-send to that section, for it
would enable the banks there to fur
nish the money needed without out
side aid and free from the cost Of
interest now paid on borrowed mon
ey, and national banks in all other
sections having the same privilege.
The result would be to make money
more abundant and cheaper, and to
relieve the New York market of the
annual strain now put upon 1t. On
October 6, 1896, the capital stock OF
the national banks In the eight
States named was about $3S.00O,OOO.