The Montgomery advertiser., 1902-09-30
SOUTH IS INDEPENDENT
ABLE TO HANDLE AND MARKET
 ITS OWN COTTON.
Great Strides Made in the Past Few Years-Exports from Interior Draws Money from Europe. New York No Longer the
 Banker for the South.
New York Mail and Express.

New York Mail and Express.
 From comparatively unimportant standpoint in the matter of supervising the movement of its own cotton crop and
 providing the requisite funds, the South has in the past few years attained leading position among the monetary centers hitherto assisting it. Today 1t
 is able with but little aid from outside sources to handle and market its own cotton, which is quite an undertaking in itself.
 The true explanation for this progress Is found in the vast wealth accumulated in the South in recent years, as its com
 mercial statistics plainly show. There are evidences of continued and even greater wealth. Further development of its resources means increased riches. The expansion of the cotton industry in the past few years and the amount of capi-
 tai invested in this direction may be taken as an illustration of the growth in financial power.
 Mills sprang up rapidly and their spin deage constantly increased. These mills require large proportion of the crops, and in this branch of the industry there
 has been Il wonderful expansion. It is
 said that whereas the South practically turned no raw cotton into manufactured articles half dozen years ago, last sea son 1t consumed for this purpose about 2.00o,000 bales. The amount absorbed by the Northern mills, which had previous
 ly controlled this business, was only about
 22eO,00 bales. Contracts were made by
 these buyers for shipments direct to
 Europe. and cotton instead of being di-
 verted to the big cities and paying tribute
 to the commission firms, went direct to
 the mills
 ha htlG
 chants began to wane and in a measure it has been transferred to the local coun- try merchants who have more intimate relations with the planters; they now
 make more of the advances to the farm
 CTS direct. There has been a practical revolution In the method of advancing funds for the movement of the crop. Large city merchants now deal exclusive ly with their associates in the country instead of with the planters, as before They furnish them money to a certain
 extent as they did the planters and sell considerable of the cotton, but it is done in different and on a more conservative basis.
 Fourteen or fifteen years past the sums of money advanced on account of the
 merchants to planters have gradually
 grown smaller, merchants finding this business unsatisfactory and the planters | unprofitable.
 One of the secrets of this growth to l financial power of planters has been the | fact that they have raised more product | such corn and potatoes. which has ] proven a more profitable investment for them. Naturally this has placed them | largely independent of the merchants l The exporting of cotton from interior points to Europe, accompanied with bills
 of lading and drafts. has drawn money
 from abroad instead of from local l sources.
 Banks with large surplusses have been | organized rapidly. Today rates of in ! terest for money are about as low as in
 the North or West, formerly they were
 very high.
 Now that railroads east of the Mis-
 sissippi have granted the rights of sub
 stitution of cotton, the hope Is enter | tained among cotton brokers that this | city will regain it's lost prestige as the | leading cotton market. The same privi-
 lege is anticipated from Western trans | portation companies. About six years | ago this market. owing to the discrimi-
 nation of freight rates against it. lost its favor There were In addition charges | of storage labor, insurance. for putting in and taking out of store, that made
 the shipping of cotton from the South
 
 The through rate to Boston points over
 New York Is 5 cents per hundred pounds. while the local rates are from II to 16 cents so the discrimination is evident. Stocks of cotton in the licensed ware houses began to dwindle, and those which contained in the aggregate a half dozen years ago between SOo,ooo and 100000 bales now have about 10,0O0 With this sort
 of situation it Is natural that cotton is
 only brought here in large quantities dur ing times of corners.
 Previously cotton marked en route for Europe could not be diverted here In
 order to take advantage of any advance
 that might have occurred in the local
 market during it's shipments from the | south. Rut the substitution gives this 1 riebt One fact Is certain, however New i York is the largest speculative center Of
 tho world. and acts as quotation com
 mittee for it. hut not as the banker for | the South, as formerly.