The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1897-11-23
THE PRICE OF COTTON
"A New Explanation About the
Cause of Low Prices for the Great
Staple.

"A New Explanation About tn,
Cause of Low Prices for the Great
Staple.
The cause of the reduction in price
OF cotton has be en- explained variously
but the following article presents 9
new view altogether, and cotton
dealers are disposed to accept this
view to some extent Farmers car
take choice Of the explanations given,
but the fact remains that cotton is
below the cost of production. Here is
the letter:
To the Editor of New York Evening Post :
| Sir:-The price cotton is selling for
Is great disappointment to the South.
1t was not anticipated, as consump.
tion and production were close on each
| others heels, and +he stock on hand
was OF extremely Ieagre proportions
Judged in the light OF past experience,
1T looked as il the crop would bring
two cents per pound more than it is
now bringing. However, in the factors
that formerly fixed the price of cot
ton, one element differs now, and to
this difference, in the estimation of
many, is due the low price now ruling.
The difference consist in the way
the bulk Of the cotton crop is now
thod In vogue seven or eight years
ago. Formerly the crop was marketed
through the cotton factor in the citie S
Of the South. Now it is done largely
through the local buyer at the GROSS
roads" depot. The advent of the local
buyer was hailed with great rejoicing.
The farmer could then sell direct to
the spinner buyer" The cotton
factor would be eliminated as a USE !
less expense, and the one half cent per
pound cost OF marketing saved. In the |
light of recent events IL looks as if the |
farmer had to considerable extent |
accomplished his purpose of saving
the two and one-half dollars in com,
missions and charges, and lost ten
dollars per bale in the value of his cot
ion; a delightful bit of rural finan-
ciering.
Formerly the crop as concentrated
In the large cotton centres with cotton
factors. 1t was in strong and compare
lively few hands. The higher the
price of cotton, the better it was for
both factor and grower. Factors
having control of the spot cotton, de-
clines in price could often be success
fully resisted and advances in values
maintained. How different the con.
iitions now The cotton is scattered
in the hands OF many, many thousand
cotton farmers, each marketing his
cotton alone and without reference to
the other in the hands of parties
mainly who are in debt and must sell
heir cotton to pay the country mer- $
chants store bill. :
The thousands of little railroad
stations each has it's little local buyer {
each country buyer is force con-
inually acting to lower the price of
cotton. he is either endeavoring to ,
get the farmer to accept the extremely T
ow bid of the shrewd spinner at q +
,rice that will net the buyer 25c. or
Oc bale, or he is flooding the diff 8
erent markets with telegraphic offers, y
wildly endeavoring to pluck orders t
rom his almost iunumerable competi- r
ors. The number of offers alone }
'ause the amount OF cotton offered to |
'e largely magnifed. In many in
tances the local buyer is impecunious, I
md has adopted cotton"buying after q
laying failed it every other line. a
This has, however, not prevented him t
his year from selling head thousands /
II bales of spot cotton, which it would t
ne market to advance. He can r
eadily do this, as he has nothing to
oSe and If the market goes his way, +
Is 1t has done, he is so much the n
,ainer. >
During the present crop the price t
has been put down notch by notch by =
he enormous offers OF spot cotton by $
hese local buyers, in spite OF the fact
hat the size of the crop is purely pro- +
pective and the actual movement is !
mailer than with the crop last year, :
! crop which although a large one, r
acked 100000 bales of supplying con- /
requirements.
That cotton should bring the best +
possible price is matter of national 8
concern. Many schemes have been
for marketing the crop, but,
IN account OF the large area of terri
ory involved and the number OF parties
n interest, nothing feasible has been
Laissez- -faire must be
,rusted to bring solution of the pro-
)lem.
w. COLLIER ESTES.
Memphis, Tenn, Oct. 26.