The Wichita daily eagle., 1897-11-16
-eSANlLAN
9ailu Eagle
nj. NJ. MURDOCH. Editor.
COTTON WILL BOOM.

gone generally into cotton raising and
the price of cotton has been ruinously
low. Wheat is high, corn is high, cat
tie are high. What is the matter with
cotton? Knowing that it has not been
over-production, the Oklahoma cotton
raiser has asked this question again and
again without an answer to clear away
the mystery.
But a suggestion has been made
which indicates that those Oklahoma
farmers who have handed together to
mold their cotton for higher prices have
level heads. That suggestion comes
from w. Collier Estes Of Memphis, in a
letter to the New York Evening Post.
His letter in full is as follows:
sThe price cotton is selling for is a
great Disappointment to the south. II
was not anticipated, as consumption
and production were close upon each
others heels, and the stock on hand was
of extremely meagre proportions
Judged in the light Of past experience,
1t looked as if the crop would bring two
cents per pound more than 1t IS now
bringing. However, in the factors that
formerly fixed the price of cotton, one
element differs now, and TO this dlher-
ence. in the estimation of many, Is due
the low price now ruling. The differ
ence consists in the way the bulk OF the
cotton crop is now marketed as compar-
ed with the method in vogue seven or
eight years ago. Formerly the crop was
marketed through the cotton factor in
the cities of the south. Now it IS done
largely through the local buyer at the
crossroads" depot. The advent of the
local buyer was hailed With great re-
joicing. The farmer could then sell di-
rect TO the spinner buyer" The cot
ton factor would be eliminated as Use
less expense, and the one-haf cent per
pound cost of marketing saved. In the
light Of recent events it looks as If the
farmer had to a considerable extent
accomplished his purpose of saving the
two and one-half dollars in commits
sions and charges, and lost ten dollars
per bale in the value of his cotton; de-
hghtful bit Of rural financiering. For
merly the crop was concentrated in the
large cotton centers with cotton factors.
1t was in strong and comparatively few
hands. The higher the price Of cotton,
the better it was for both factor and
grower. Factors having control OF the
spot cotton, declines in price could often
be successfully resisted and advances
In values maintained How different the
conditions nowl The cotton IS scattered
IN the hands of many, many thousands
of cotton farmers, each marketing his
cotton alone and without reference TO
others; In the hands of parties mainly
who are in debt and must sell their cot
ton TO pay the country merchants store
bill. The thousands of little railroad
stations each has its little local buyer.
Each country buyer is a force cOnt1nu-
ally acting to lower the price Of cotton.
He Is either endeavOring TO get the
farmer to accept the extremely low bid
of the shrewd spinner at price which
will net the buyer twenty-five or fifty
cents a bale, or he is flooding the diff
ferent markets with telegraphic orders
wildly endeavoring to pluck orders from
his almost innumerable competitors.
The number of offers alone causes the
amount of cotton offered TO be largely
magnified. In many instances the local
buyer Is impecunious and has adopted
cotton buying after having failed in
every other line. This has, however,
not prevented him this year from sell
ing ahead thousands of bales of spot
cotton, which it you'd be impossible for
him to deliver were the market to ad-
vance He can readily do this, as he
has nothing TO lose; and If the market
goes his way, as 1t has done, he is so
much the gamer. During the present
crop the price has been put down notch
by notch by the enormous offers of spot
the fact that the size Of the crop is
purely prospective and the actual move
ment is smaller than with the crop last
year. crop which, although a large
one, lacked three hundred thousand
bales of supplying consumptive require
mentS."
A perusal of this letter, in what it
does not say. should bring encourage
ment 10 every cotton raiser. The reign
Of the cotton factor in the south has
not been credirable one. Under the
cotton factor the south has long been in
debt. A much more just distribution of
prosperity will be attained through
these small local buyers, whom Mr.
Estes despises so warmly.
But the point is not there. According
TO this authority. the principal reason
that Gotten is low is because the crop is
exaggerated. Small local buyers by
their keen competition have given the
market the appearance o. being over
stocked. The lowering of price with
the change from the factor 10 the small
local buyer. without any concerted plan
u control the market. is perfectly nat
ural. But the fact stands out plainly
that the world viii discover what the
matter is, and that soon. The delivery
of The product VIII divulge it and cot
ton will go on a boom which for sud
denness and senSationaliSm VIII throw
the late recovery Of wheat in the shade
That market is now suffering from the
appearance OF things incident TO 3
change of business methods in the