The Banner-Democrat. [volume] (Lake Providence, East Carroll Parish, La.) 1892-current, 1898-10-22
THE COTTON PROBLEM.


merce has undertaken to discover
the prevailing sentiment in the
South as to the probable eject on
the future prosperity of this section
Of 5 cent cotton. With that pur-
pose in view it has addressed to
prominent bankers throughout the
South the following series of ques-
tons:
"Fjrst-Does the present low
price of cotton seriously threaten
the prosperity of the South?
"Second-Has there been general
". or in special sections, any reduc-
ton in the cost of raising cotton!
II so, to what extent?
ocThird-Are there any other Off
sets to low prices of-cotton?
"Fourth- any profit he made
to the planter on Scent cotton?
"Fifth-Are general business con-
ditions in the South sound and
promislng?"
Our contemporary explains that
the bankers have been approached
| for the reason that, because of their
close relations 20 the-nterests which
the sale of the crop principally
affects, they are likely to be IN bet
ter position to properly gauge the
influences of the low prices prevail
ing for the Sonth's leading staple.
The Journal of Commerce publishes
a number of replies from bankers,
and promises to publish more. The
bankers quoted are mainly from
single State, hence the deductions
drawn are somewhat weakened from
the appearance of having been based
upon local rather than general infor-
nation. 1t is safe to assume, how
ever, that our contemporary has
many other replies from different
portions Of the South which it will
be publish in time.
As to the character of the replies,
the Journal Of Commerce says that
they are "almost unanimously hope
full" Summarizing the opinions re-
ceived, it says that 'they agree O)
that the reduced price of cotton
does not imply any setback to the
general business prosperity of the
South; ~ that the cost of raising
the staple has been materially les.
sened during the years of steadily
falling prices; (3) that, in most
sections, the cost of production is
only about one half what 1t was ten
, years ago; (4) that scent cotton
Will, as a rule, leave a moderate
: profit to the grower; ~ that the
planters are steadily diminishing
3 their dependence upon factors ad
vances through diverslfying their
. crops ard producing articles of FOOD
which they have formerly been &C
customed to buy at oppressive prices;
(e) that, owing to this diversified
l ton OF crops, they have diminished
their local debts aud acquired an in
} dependence of the factors which
: enables them, with economy IN ex
! penses, to effect regular savings; ant
(7) that the general condition of tn,
agricultural South is such as to war
rant the hope of steady run o
! prosperity, in which the mercantile
interest will receive its share of bene
fit"
r All this is, no doubt, the tru,
3 position of affairs and correct fore
o cast of the future. 1t is none TIT
less true, however, that the DECLINE
in prices has been too rapid; ant
that while producers0were prepared
(, to meet the altered circumstance
arising from crop selling on plan
/ tations at 5-cents per pound the!
cannot hope for profit from the sal
of a crop which will bring yer,
much less than scents on the farm
when it is actually selling below
that figure at the Southern outports
f, No one doubts that the South vii
D recover from any i'll effects that th
a low prices of the present season ma!
$ cause, and VIII rapidly adapt itsel
, to almost any change in clrcumstan
ces; but that much temporary dam
age will be done by: existing low
: prices seems almost inevitable, un
less there is an early and sharp i'm
provement in value before the entir
: crop has passed out of the produc
ers' hands.
The Journal of Commerce is en-
tirely correct in holding that the ex
PLANTATION of the South's ability t
S withstand the heavy decline il
t prices during recent years has bee
o due to the fact that its farmers hav
= wisely resorted to diversltication
and have, by force of circumstances
: been compelled to become self-sus
tanning in the matter of food SUP
plies and independent, in larg
measure, of money advances.