The Caucasian. (Clinton, N.C.) 188?-1913, 1897-11-18

he surplus ~ she end OF the season
was m amount sufficient 10 run the
mericsn mills about Eve weeks and
he European mills about twelve weska.
q the season Of 1890 81 the total worlds
'uppiy was $4,000 bales, and the
surplus II the end of the season was An
amount sufficient tn run American
mills About four and one-haif weeks
md the European mills Abuu- seven |
weeks. Thus we Sc, comparing ihese
bich were taken a. . fair test, that |
alt honxh the production in $780, 81 Was |.
nearly twice what IL Was ia lsGO CT,
the surplus at the end of the sea -on Of
ls30-9l was less than at the end OF the
season OF ls60-el. The sam. il true Of
other seasons. Take ls93-34. the total
wor,d's supply WAS II GOO COO. and at
the end of the season the surplus OF
American mills was for about four
weeks ard for European mills about
nine weeks. This comparison of sup
ply AMI surplus is based on the worlds
production; but a similar result can be
seen from 3 comparison OF the home
crop alone.
SO much for 0verproduction.
We believe that there are two potent
factors. which are almost wholly re-
sponsibie for this protracted depres-
sion of cotton value to the farmer
First and foremost is the destructive
influence of the gold standard upon all
property values. Cotton, like every
other commodity in which the farmer
is interested and like the property
which he holds is suffering a deprecia-
ton in proportion to the appreciation
of gold. 1t is true that cotton, due to
manipulation, is subject to cratic
fluctuations in price, selling some
times higher and sometimes lower, but
it is noticeable that the general ten
dency has for some years been down.
ward, and that it has been keeping
pace with, in fact outstripping, the
depreciation in other property values
caused by contracting financial sys-
TEN. The reason that the gold stand
ard has a more disastrous effect upon
cotton is the fact that we export such
large quantities of this staple. In fact
we export considerably more than is
used in this country, the proportion
being about one-third used for
home consumption and two-thirds
for export. This export cotton
must come in competition in the mar
kets of the world with the cheaply
raised cotton of India, and other sill
| yer using countries. AS these silver
using countries are able, not only on
account of their pauper labor, but also
on account of the fact that selling in
the markets of the world for gold they
can convert it into silver and thus on
account of the relative value of gold
and silver bullion receive double what
we who are on gold basis will receive
for the same grade of stuff, 1t will e
seen at glance the great disadvantal e
under which we labor in competing in
the markets of the world with these
silver using countries. It is true that
the Southern States raise big major
ity of the worlds supply of cotton, but
the fact that the price at home is con-
trolled by the price of the export, and
that there is sufficient cotton raised in
the countries referred to to cheaper
our export product, makes the gold
standard work with doubly disastrous
effect to US upon this great staple pro
duct of ours.
The other potent factor and unmis-
taxable influence in the depression OF
cotton value to the farmer is the sys.
TEN of operation in futures" or the
buying and selling of options. There
is in New York, with branch in New
Orleans, a gigantic combination, styled
the Cotton Exchange, whose members
under certain rules and regulations
make it their business to manipulate
the price of cotton. 1t is purely {
gambling device, they dealing exclu
sively in fictitious or wind cotton
neither delivering nor demanding de-
livery of their sales and purchases, bu
it differs from other gambling device
in that on account of its peculiar ant
far-reaching effect, it controls to con
! siderable extent the price of real o.
spot cotton. These big cotton opera
tors, in effect say to the world, we will
buy all of your product or we will eel
all of your product, but they are care
full to try to shape the sentiment of tn,
rest of the world so as to make them a
, much as possible trade in the same di
} rection. AS their biggest clientage i
throughout the South, where this sta
pie is raised, and where men are nat
urally inclined to believe in the tend
ency of their product to increase il
value rather than to decrease, the trad
ing in cotton options by the South i
: usually upon the buying side. Tn:
: leaves the manipulators to sell, an,
with the machinery in their hands TO
r regulating prices they would be les
! than human did they not take adyant
= age of their ability to decrease tn
= prices of cotton in order to add to thei
4 own profits. Another depressing in
!. fiuence which this system has upon tn
= price of cotton is the fact that the ira
: ding in futures" or fictitious cotton
e ten times as great as the trading ii
9 spot or real cotton, and, as future cot
r ton almost invariably rules lower thai
: spot cotton, due as we are told, to tn
3 fact that future cotton is by contrac
b deliverable in any of thirty or more diff
e ferent grades and half grades, and il
: the event of delivery "a thing tina
!, never happens) the commonest grad
e will be used, it is easy to understan