Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-09-15
HOLDING COTTON DISCUSSED.

- An Just in receipt OF letter which is
published below from subscriber -.
s E." asking me TO discuss the ad-
visibility OF warehousing cotton and
borrowing money on the receipts for
short periods OF time. 50 as 20 check pres
ent heavy receipts.
Our correspondent does not think It
would be advisable, intimating that
expenses would soon eat up the advance
that might be obtained. I do not think
50, and give my reasons, following the
publication OF his letter. which is given
as follows:
y. s e." Spann. Ca. Sept. s. 1902.
Your advice 70 the farmers is very
good 50 long as they owe nothing and
have q warehouse OF their own TO store
cotton in, but as long as farmers are COM
PEELED TO haev money on their cotton to
pay for making il and are compelled TO
store II in public warehouses and pay
one per cent per month for money and .
cents for storage. and then not allowed TO
draw only about two-thfrds OF what the
cotton is worth. All the rise in the cot
ton viii go TO the banks and warehouse
men and the farmer viii be left with the
loss OF weight by reason OF holding the
cotton I would be glad TO see your CON-
ments OF this side OF the subject in The
Journal.
IF the farmers can gather the cotton
as fast as il opens they viii have II all
out By the end OF this month in this sec
ton"
have always contended that the best
and only proper method OF holding cotton
by the producers IS 10 store IL in good
homemade warehouses on the farm As
our correspondent states. however. there
are many farmers who cannot hold their
sotton On the farm after their obligations
aecome due in October. When accounts
TAN due the cotton must be either sold or
Earehoused and the warehouse receipts
ased upon which TO borrow money TO meet
maturing obligations or 10 pay operating
expenses
Where a farmer lives entirely in the
merchants store. and raises cotton TO
The exclusion OF all food crops. as a
natter OF course. the crop must be sold
as fast as gathered 70 pay debts made to
grow the crop. In such cases the money
value OF the crop has been exhausted.
such farming Is neither profitable nor de-
sirabIe. and those who persistently pur-
sue such q system viii always keep their
noses 10 the grfmdstoue- Still, another
Glass who owe money. but who having
made their farms partly selfsustaining
are not forced 20 sell their cotton, or all
Bfit. 70 meet their obligations This class
nav warehouse their cotton and borrow
tome money on IL. and gradually sell il
when the market suits.
Storage ard insurance on a bale Of
tottou are usually about ~ cents per
month. At present prices SO can be Dor
owed on warehouse receipts for each bale
II cotton stored from our local banks at
A rate Of interest not exceeding per cent
Der annurn. Cotton is now selling for al
hast SO per bale less than its value.
II farmers geperally throughout the belt
would store their cotton at home or in
warehouses. the price would advance 20
d cents per pound in les than 50 days.
The cost per month OF holding a bale Of
rottou in a warehouse. including the in
ierest on SO per bale borrowed for one
month. would amount TO @ cents. or say,
Yue-eiEhth Of a cent per pound.
II the system Of marketing the crop
fiowly were generally introduced. the ad-
rance IN the price over the present system
II rushing the market and accepting the
buyers price. would more than quadruple
he cost OF holding. As 10 loss I'm weight.
hat is deducted from the price on all
green cotton anyway 50 that we sustain
this loss. figured on an average basis OF
past experience. whether we sell at once
II hold
The grain producers Of the west store
heir grain and borrow money on Il and
telI slowly. So do the tobacco farmers,
md the manufacturers of nearly all COM
nodfties from farm products which are
Tot perishable-
IL IS unreasonable 10 suppose that our
,otton viii ever command its value 70 the
PRODUCERS so long as they keep the market