The people's journal. (Pickens, S.C.) 1891-1903, 1897-11-25
THE PRICE OF COTTON.
n New Explanation About the
Cause of Low Prices for the Great
StaDie.

n New Explanation About the
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 a
new view altogether, and cotton
dealers are disposed TO accept this
view to some extent. Farmers can
take choice Of the explanations given,
but the fact remain, that cotton is
below the cost Of production. Here is
the letter
TO the Ed tor Of New York Evening Post
Sir The price COTTON is selling for
is great disappointment to the South.
1t was not anticipated, as cOnsump-
tlon and production were close on each
others heels, and the stock on hand
was OF extremely meagre proportions.
Judged in the light Of past experience,
it looked as If 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 consists 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 citi S
Of the South. Now it is done largely
through the local buyer at the cross
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 USE
less expense, and the one-haif cent per
pound cost of marketing saved In the
light of recent events it looks as if the
farmer had to considerable extent
accomplished hts, 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; delightful bit OF rural tinan-
ciering.
Formerly the crop was 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-
dlti0ns 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
their cotton to pay the country mer-
chants store bill.
The thousands of little railroad
stations each has its little local buyer.
Each country buyer is o force con-
tinually 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 q
price that will net the buyer 25c. or
SOC. q bale, or he ia flooding the diff
ferent markets with telegra phic offers,
wildly endeavoring to pluck orders
from his almost iunumerable competi-
tors. The number OF offers alone
cause the amount Of cotton offered to
be largely magnified. In many in.
stances the local buyer Is impecunious,
and has adopted cotton"buying after
having failed 1t every other line.
this year from selling head thousands
of bales of spot cotton, which it would
be impossible for him to deliver we're
the market to advance. He can
readily do this, az he has pothing to
lose and If the market goes his way,
as it has done, he is 80 much the
gamer.
During the present crop the price
has boen put down notch by notch by
the enormous offers OF spot cotton by
those local buyers, in spite Of the fact
that the size OF the crop Is purely pro-
spective and the actual movement is
smaller than with the crop last year,
crop which although large one,
lacked 100000 bales Of supplying con.
sumptive requirements.
Inat cotton shonld bring the best
concern. Many schemes have heer
proposed for mark citing the crop, but
on account OF the large area of terri
tory involved and the number of partie,
In interest, nothing feasible has beer
proposed. Laissez-faire must h,
trusted to bring q solution of the pro
blem.
w. COLLIER ESTES.
Memphis, Tenn, Got. 28.