Okolona messenger., 1903-07-01
nToRINo coTToNIMTHE souTH.

This IS something new unuer tue
sun. Coal has been shipped to
Newcastle many times, # the old
prOverb may be trusted. But
never until now had cotton, raised
in Southern fields, been reshipped
20 be spun in Southern mills.
The report has been sent out that
q steamer is now being loaded with
cotton bales, taken from the ware
houses in the East, to be carried
South for consumption IN South
ern mills.
From a business standpoint
such a proceeding is one of extreme
folly. The chief advantage the
South possesses in Cotton manu-
featuring is the proximity OF the
mills to the fields. The raw ma
terial can be manufactured on the
spot, saving freight charges and
the cost Of handling by one or
more middlemen. When the cot
ton raised in the South is shipped
back again, this advantage is lost,
and the South is really worse on
than England, which though hav.
ing to pay for long carriage, at
least buys direct.
Today there isn't cotton enough
in the South to operate the mills
until the new crop comes in.
Many of our Southern mills have
not enough cotton to last them
until Sept. l. The cotton ware
houses Of the South are practical
ly empty. Many mills have al
ready been wholly or practically
closed, and others will be compell-
ed to do the same unless they re-
ship cotton at heavy extra expense
back to the place from which it
was originally shipped. This is
suicidal as a business opposition.
1t has never before occurred,
and such a thing is not only new,
but it was entirely unexpected.
That doesn't take away the hurt,
bat provisions should be made
that it will never occur again.
Unless such provision is made it
is sure that this state of affairs
will become chronic, and the
south will possess no advantage
over the rest of the world in cot
kon vnopnfooturiuU
The needs Of the world Of cot
ton goods have OutgrOwn the de-
velOped capacity to produce the
raw material. In spite of all ef-
forts, more or less successful, to
raise cotton in India, Egypt, Rus
sia, East Africa and elsewhere,
and in spite OF the fact that our
cotton belt may now produce H.
900, 900 bales a year, there isn't
cotton enough raised now to sup
ply all the mills. Still new mills
are being built, to supply the in
creasing demand for cotton goods.
While it does not appear that
these mills are built faster than
the need for their product requires
it is certain that they are being
built faster than raw cotton can be
produced to feed them. Some
mills must stand idle because
there will not be enough raw ma
terial to keep all OF them running
all the time. This will lead to a
scramble for cotton, in which
somebody is bound to be left.
The Southern mills have the
best chance in this scramble, for
the cotton is raised at their doors,
and they can buy it first. If
Southern mills will, when the cot
ton is being brought to market,
lay in sufficient supply to last
them to the next season, only the
surplus can 60 to other mills.
Why shouldn't they do this Z
Perhaps they haven't the money
to buy a whole years supply at
once, but they can buy for future
delivery. This they should do.
Such a transaction would not be
gambling in futures, as it is prac-
ticed by the bulls and bears, but q
legitimate business transaction
such as is practiced by every bus.
mess. Perhaps it may be urged
that Northern and European mills
could do the same, which is cor.
rect, but even il they should the
cotton would be left in the South,
Parties who would take contracts
for the delivery of cotton at a fu'
ture date would not pay freight
charges on it until they delivered
the goods. They would not ship
It away, and assume the risk Of
adding to the cost by paying for
unnecessary shipping and re-ship-
ping. The South would be the
gamer by such arrangement, and
true economy would be promoted.