The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-10-28

Warehouses On the Farm
CHarvie Jordan, in Atlanta Journal)


1t must be patent TO every producer Of
cotton throughout the belt this season,
that the prices paid for the staple have
been regulated by the daily receipts Oh
the local markets, aud that legitimate
demand for consumption has had moth
ing whatever to do with the price. l
have talked with many leading exporters
and large cotton buyers on the subject,
and they all. without an exception, admit
that heavy receipts have more thar all
things else regulated the price of cotton
for the past two months. There are two
important facts which none have the
temerity to deny, those are, first that
there is an unprecedented demand for
cotton goods in all parts of the civilized
world, and that the outlook for fine bust
ness by the manufacturer for the next
twelve months was never brighter, Sec
ondly. that the bearish element was
never more timid realizing that crop
too short to meet the worlds demand is
inevitable. The dull" element, notwith-
standing the rapid marketing of the crop
| has been unprecedented, has been the
stronger of the forces in the speculative
| market and have succeeded in keeping
! the price of cotton up to s cents per
pound in spite of the farmers and t0e
| Liverpool markets. The producers have
| had an eye this season single to one
| purpose and that to pick and Sin the
| crop as rapidly as possible and dump it
on the market, it made no difference
whether the buyers wanted the staple or
not. Europe has largely kept out of the
| market. and has steadfastly refused to-
meet the prices paid by the interior buy
ers, the sentiment across the waters be-
ing that if so much cotton is being
placed upon the market so carly in the
season. there must be an overwhelmingly
big crop to be harvested, and that they
would wait until later and come in when
prices were lower. There can be no
other inference drawn from the actions
of the European spinners, and the prices
sent across by the exporters. | have
taken great pains and time to discuss
the problem which cOnfrOnts the pro
ducers in marketing their cotton so as
TO secure its value. and have talked with
prominent bankers, merchants and buy
ers, on the subject, and they uniformly
agree that the only hope for the pro-
ducers is to introduce a system of mar
keting the crop slowly, selling through
a longer period of time and thereby
gradually regulating the supply TO meet
the legitimate demand of the spinner.
This is the only business view to take
of the situation, it is the only method
which can be successfully pursued in
handling any product. either from the
farm, mandatory. or other line of in
dustry There is not now, nor has there
been for some time, any demand what
ever by the spinners for raw cotton At
the opening of the season the spinners
promptly laid in a temporary supply and
then retired from the market, rendering
the market for spot cotton a speculative
one, and giving the buyers every OPP
portunity to keep down prices the spin
ners making purchases for future deliv-
cry, and getting their supplies much
cheaper in that way than in coming into
the market as active purchasers for cot
ton to last them for the next twelve
months.
WHAT IS THE REMEDY?
What are two remedies to- meet the
existing necessities of the situation from
the producers standpoint. There arc
three classes of farmers, only two OF
which may be material factors in bring
ing about a proper solution of existing
troubles One class of our cotton pro-
ducers puts all the burden of making the
cotton crop on the scale of the staple, /
and as they owe what they make before |
it is gathered the product of their fields /
must go upon the market at once to
meet the demands Of the merchant who I
furnished the supplies. The second class /
do better and are not forced to sell all
OF their cotton as it is ginned in order !
to meet outstanding obligations This /
class may place part of their cotton in
warehouses and draw sufficient money /
on the receipts from their local banks
so as TO secure ready money, and still .
be able to hold their cotton and sell it .
slowly through each month and at such !
times as there may be a ready demand
at good prices The third class is com |
posed of farmers who are independent by |
the adoption of proper methods of farm |
ing and can sell or hold their cotton at |
home just they please. By cO-opera- |
tive action among these two latter !
classes the heavy rush on the market
in the early season may be avoided, and !
good prices will be received by those !
who are forced to sell, as we'll as for
such sales as will be put upon the mar
kct by the two classes referred to. Much
has been written about bonded ware |
houses for storing cotton by farmers and |
borrowing money on the receipts. This !
is we'll enough for those who cannot
obtain money otherwise, but for the in
dependent farmer, my plan has always
been to store the cotton on the farm
where it has been produced until such
time as the owner wants to market it,
/ have adopted this plan in holding
my own cotton this season. and have
constructed a fireproof warehouse to be
used for that purpose. The cost of such