The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-07-07

to $30 per bale, preferrlng to secure that
profit rather than work the staple into
cloth. In view of these facts, there can
be no question that the present supply
of American cotton has been fully ex-
hausted save the small supplies that are
in the hands of those mill owners who
were fortunate enough to buy a sufficient
quantity of raw cotton to meet their
requirements for IL months To talk
about any surplus of old cotton being car
ried into the new crop of this year will
not only be absurd and absolutely with
out foundation, but it will be a scheme
on the part of buyers and spectators to
deceive the producers as to the true con-
dition of affairs.
PRESENT PRICE OF COTTON.
A bale of middling grade cotton, weigh
ing 500 pounds, will today readily com
mand cash value of $65, or 13 cents per
pound. large number of mill owners,
some of whom reside in Georgia and the
Carolinas, as well as the east, and who
bought their supplies from farmers last
fall at from " to S cents per pound,
have recently sold heavy lots of spot cot
ton at from II to 13 cents per pound, net
ting in profits $25 on each bale. Without
geIegatmg TO mvseu any oil !, d,
prophet, yet had the producers of cot
ton needed not only the advice, but the
sound business policy which I so earnestly
urged through these columns in the sale
OF the crop last fall, such a condition of
affairs could not have existed because the
entire cotton crop of 1902 could have been
as easily sold by the farmers for 10 cents
per pound as it was for from 71k to s
cents.
1t is true a much larger number of
farmers held their crops until spring and
sold it at 8 cents than usual, but the vast
majority rushed the market from August
until the last bale made was packed,
thereby furnishing daily the weapon which
enabled the buyers to hold down prices
and secure the staple at a great sacrifice
to the producers. This condition of af-
fairs will continue so long as cotton pro-
ducers rush their staple upon the market
and dispose of years supply within the
short space Of three to four months
The spinners can well afford to pay 10
cents per pound for raw cotton at present
prices of cotton goods for a full average
crop. If the crop is shot, then the price
of cotton goods will advance and the spin
ners could pay more.
The present price of cotton is abnor-
mally high and is due solely to the fact
that there is no cotton in the country to
be had and many mills are short of
stocks to keep their spindles moving and
fill contracts for cotton goods We find
the late months, during which period the
new crop viii be moving from the farms,
nearly three cents per pound cheaper
than present prices. This clearly indi-
Gates that the market in August and Sep
TENDER will not likely open at prices high
er than 10 cents, and when the rush be-
gins and receipts grow heavy, prices will
rapidly sag to low level. Any man
with knowledge of the cotton situation,
as at present existing. should know be-
yond question that the crop of 1903
large or small, should net the
producer at least 10 cents per pound.
SELLING THE STAPLE.
We have now discussed as clearly as
possible in a limited article of this kind,
first, the present condition of the grow
ing cotton throughout the belt; secondly,
the unusual shortness of supplies of raw
cotton on hand; the entire absence of any
surplus Of old cotton fit for spinning pur-
Poses, and, thirdly, the existing conditions
which have forced the price of cotton to
an abnormally high figure, and why our
staple should sell high during the coming
season. We know that under the condi-
lions named above that there is heavy
demand for American cotton in all the
spinning centers of the world, and that
the mills will be quite willing to pay good
prices this fall, if they cannot buy the
staple cheap.
Every producer of cotton is surely in
terested IN selling his crop for the best
prices he can obtain, just as the spin
ners are interested in buying their sup
plies as cheaply as possible We find,
therefore, that the buyers will continue
using every imaginable device which bust
ness sagacIty and human ingenuity can
construct to depress the price Of the sta
pie down to the lowest level possible. The
producers must meet this system of anita
gonlsm by devising and adhering as closely
as possible to a method of selling the
crop which will force the price of cotton
to be based upon legitimate supply and
demand thereby securing to producers
lair and equitable prices, not regulated
by speculative and oyersupply during
short period of time.
In other words, if the price of spot cot
ton is to be maintained at a high level
during the coming fall, winter and spring
the crop must be placed upon the market
slowly, and not in greater quantities than
the mills want for monthly consumption.
The whole question of high prices de-
Ponds now upon the method of selling and
not upon the yield as in years gone by.
Every man who is in position financially
10 sell his crop slowly should avail him
self of this sound business policy.
Thousands of farmers can hold their cot
ton on their farms, taking a portion of it
each month to market Thousands of
others can Use warehouse receipts upon
which TO borrow money at Jow rate
of interest from their local banks, and
pay up maturing obligations, thereby
checking the heavy avalanche of cotton
uron the market.
Others, who, unfortunately, by a bad
system of farming in failing to raise sup
plies owe the crop before it is gathered,
will be forced to sell. But if those who
can will hold back, the market lean be
maintained and high prices secured by
those forced to sell, thus better enabling
them to pay their debts and get a more