The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-30
THE EFFECT OF THE CORNER
IN COTTON UPON THE SOUTH
ERIN FARMER AND MANU-
FACrURER.

The Secretary of Agriculture is very Sc
we're on the Southern spectators who
have cornered the supply of cotton and
made cotton dear to manufacturers. The
Baltimore Sun calls attention to the fact
that Mr.. Wilson did not feel called upon
to roast the Chicago syndicate that corn
cred the wheat, making it high to the
consumer. In both instances the same
selfish desire to get rich prevails. In the
wheat trust, Western farmers got the
benefit of the corner. In the present in
stance. if the spectators continue the
corner it may result in helping the South
ern cotton farmer. 1t is perhaps hoping
too mueh~to expect the cotton farm
er to reap any benefit from manipulation.
He has usually suffered from it, though
ex-senator M. C. Butler, of South Caro-
lima, gives it as his opinion that the men
who have ''cornered the market in cot
ton have done more for the producers
of cotton, the farmers, in few months,
than the Department of Agriculture in
ten years" He argues that the corner"
was legitimate transaction and will
greatly benefit the Southern farmers He
goes on to say that the mill-owners have
been growing rich at the expense of cot
ton farmers, that they have not paid
fair price for cotton in the last ten
years and he argues that the effect OF
the speculation of the New Orleans men
will be to deliver the farmer from the
clutches of the manufacturer
Secretary Wilson replies with spirit to
General Buffers tart criticism, and says:
Il hope the business men of whom
he speaks will see to it that these prices
continue until the cotton grower sells
the coming crop. If that should be done,
L will make trip to South Carolina, find
General Butler, if he should be there
take off my hat to him and say to him
that l regard him as great public bene-
factor, who has been able to see further
ahead into the future than we poor
| follows of the Department of Agriculture.
But if, on the other hand, it should oc-
cur that the price of cotton is dropped,
when the farmer gets ready 10 market
| his new crop, down to eight cents or
seven cents, instead of Is or II. then, of
course, l shall adhere to my opinion
that the manipulation of the present cot
ton corner by the gamblers of whom
spoke is doing indefinite mischief
Fortunately it will require only a
few weeks of waiting to determine
which is right. If prices keep up
| when the farmers are selling their
new crop. General Butler will regard
his position as sustained If the
price ''slumps,' Secretary Wilson will
have a right to say. 81 told you So"
So far as the Southern farmer is con-
cerned, up to date the putting up of
the price of cotton has done him no good.
He sold nearly all of his crop at eight
had no cotton to sell since prices touched
twelve cents The only persons benefited
SO far are the spectators. The manu-
facturer has been hurt, his business de-
moralized, and the cotton mill industry
has been checked. If the price Of cot
ton this fall is twelve cents the South
been hurt by high priced cotton this
summer. But if the price goes down when
the crop is ready for market, the South
in common with the textile world has
been hurt without any compensating bene
fit.
The South is deeply interested in both
the culture and manufacture of cotton.
1t wishes such conditions as will make
for the prosperity of both farmer and
manufacturer, of toiler in the cotton fields
and weaver in the factory There is an
absence of those conditions that pro-
duce success when within six months the
price of cotton varies from eight to four
teen cents. 1t would be of vastly more
value to both farmer and manufacturer If
the crop had ranged all the time between
! ten and eleven cents. In the fall, when
the farmer was marketing his crop, the
price did not exceed eight cents. Dur
ins the past summer, when the farmers
had no cotton, manufacturers were forced
to pay twelve and thirteen cents for it
or shut down their factories. Was either
benefited?
| Secretary Wilson, in his first article,
presumes that the higher price of cotton
during the summer was arbitrarily in
creased by the New Orleans spectators.
In this he may be mistaken. A portion
perhaps large portion-of the increase
is due to the law of supply and demand.
The demand was great; the supply was
small. Therefore the price went up
The New Orleans spectators, taking ad-
vantage of their knoWledpc IF the sma H.