The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-03-16
SHEPPERS0N ON THE STAPLE.
THE SOUTH STILL PLANTING roo
MUCH COTTON.

Prices Half a Cent Lower Than a
Year Ago Despite This Years Re
duced Crop simply on Account Of
the LncIx of Demand nt the Mills.
Many American Mills Running ON
short Time and European Mills 10
Year Ago.
Augusta, Ga, March 15-The following
letter in reference to decreasing the pro-
duction of cotton and increasing the pro-
duction of food supplies is sent out for the
information of cotton planters Coming
from an expert statistician on the produce
ton ana consumption of cotton, 1t empha-
sizes the conclusions and justifies the ac-
ton taken by the American Cotton Grow
ers' Protective Association, which met in
convention in this city to-day:
"New York. March 12. 1S97.--To Hon. Pat
rick Walsh Editor Augusta Chronicle
My dear Sir: Though our present cotton
crop will probably not exceed S.50O0O0
bales and the stocks In the worlds mar
kets and mills at the end of the season
may be even below the moderate figure
at its commencement, the fact remains
that cotton is half a cent a pound lower
than year ago.
1.-The cotton goods trade is exceedingly
dun and prices at about the lowest. Many
American mills are running on short time.
Ny friend. Mr.. Thomas Ellison of Liver
pool thinks the European mills will con-
sumo no more cotton the present season
than during last season. In view of the
injury to British trade from the plague
and famine in India, II is. In my opinion,
oven doubtful II last seasons consumption
will be actually maintained.
I'm Bombay, the cotton mills are prac-
tically closed, thus releasing more cotton
for export to Europe than had been esu-
mated. 1t is to be added the cotton crop
in India will be larger than the estimates
of several months ago
'Our congress is about to meet In ex-
ira session 20 discuss a general revision
of the tariff and the uncertainty as to the
outcome of the matter will depress every
kind of business. The session may be a
long one, and 1t is by no means certain
that any kind of a tariff bill will be pass
ed as the republicans do not control the
Senate. The depression in business on
account of uncertainty in regard 20 the
tariff would then continue into 1898.
These are the conditions which confront
the southern farmers upon the eve of
planting time this spring. 1t seems to me
they indicate with a clearness which ad-
mlts of no question that every farmer
should first make provision for ample food
and forage crops before considering the
matter. Of cotton Hcreage.
I'm July last when the crop prospects
were so favorable that many people pre-
dicted a yield Of 100000 bales the price
for November delivery declined TO nearly
| 6A cents, while middlng cotton, on the
| 4 1 IA ~.
we're drought occurred, the crop might
easily have reached 9,500,0O0 to l0,OO0,0 900
| bales. and this addition to the supply
| would probably have resulted in lower
prices by fully 1z cents per pound than
are current to-day. l think middling cot
ton would have sold at 5ia fcents in New
York and this would have been disas-
trous 10 southern farmers, and serious
injury to the entire country, on account
of the disturbance In foreign exchanges,
which would have been caused by so great
a shrinkage in the value of our cotton
exports. l do not believe that one plant
er IN a thousand can produce cotton so
cheaply that he can sell 1t on the basis
| Of 5Ia cents a pound for middling in New
York and get back even the cost of pro-
duction. to say nothing of any profit.
"It is well for our southern farmers to
remember that the cost of production ex-
erts no influence whatever on the imme-
diate market value of any commodity. The
present price Is governed almost entirely
by the existing conditions of supply and
demand When commodities are sold for
less than the average cost of production,
that fact will necessarily curtail produce
tion and a dimInution In supply will follow
later on. which will then cause an advance
in prices. Farmers, however, cannot wait
for these processes as they are generally
compelled to sell their crops promptly in
order TO meet their obligations.
ut Is true that corn Is considerably
lower in Chicago than II was a year ago.
while oats and provisions are a trifie lower
and wheat and -four a little higher. The
reduction I'm the price Of some of these ar
ticles, however, should be no reason for
planting more cotton and less grain, for
Of what avail to the southern farmer
would be the low price of grain and pro-
visions IL his cotton had to be sold for 90
little as to leave him no surplus money
with which to buy these things. The
world does not need as much American
cotton as can be grown on the present
acreage. II all southern farmers would
raiso their own foods ands forage crops
0ncluding meat and farm animals) and
make Of cotton a surplus or money CROP
they would have in their own hands the
amplest protection against low prices for
cotton, inasmuch as the overproductlOn
OF the staple would be avoided and they
would never be forced to sell their cot
ton IN the periods OF It's greatest depres-
sion. Yours very truly,