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
Staple.

N New Explanation About the
Cause of Low Prices for the Grea,
Staple.
The cause Of the reduction in price
Of cotton has be en- explained variously
but the following article presents q
new view altogether, and cotton
dealers are disposed TO accept this
view to some extent. Farmers can
but the fact remains 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 ciCsa 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 tC
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
marketed as compared with the me-
thod in vogue seven or eight years
ago. Formerly the crop WAS marketed
through the cotton factor in the citi,
Of the South. Now it is donc 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-half cent per
pound cost of marketing saved. In the
light of recent events it 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 q delightful bit Of rural iinan-
ciering.
Formerly the crop was concentrated
in the large cotton centres with cotton
factors. 1t was in strong and compara-
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,
u
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
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 force con-
tinually acting to lower tho prico 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. bale, or he is flooding the diff
ferent markets with telegrnphic offers,
wildly endeav0ring to pluck orders
from his almost iunumerable competi-
tors. The number of offers alone
cause the amount OF cotton offered to
be largely magnfied. In many in
stances the local buyer Is impecunous.
and has adopted cOtton.buying after
having failed it every other line.
This has, however, not prevented him
this year from selling head thousands
of bales of spot cotton, which it would
be impossible for him to deliver were
the market to advance. He can
lose and if the market goes his way,
as it has done, he is so much the
gamer.
During the present crop the price
has been put down notch 10y notch by
the enormous offers Of spot cotton by
these 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 u large one
lacked 100000 bales Of supplying con
sumptive requirements.
mat cotton should bring the bes
possible price Ia q matter of natioua
concern: Many schemes have beer
PROPOSED ior marketing the crop, but
on account OF the largo area OF terri
tory involved and tho number of partie
In interest, nothing feasible has bee,
proposed. Laissez-faire must b.
trusted to bring solution of the pro
blem.
| w. COLLIER ESTES.
Memphis, Tenn, Got. 26.