The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-28


To THE EDITOR OF THE SUN-Sr: Farmer
Matthew c. Butler asserts that present cotton
prices are strictly legitimate The farmers
friend. Secretary Wilson. declares them
purely speculative and unwarranted. Here
is a difference OF professional opinion. Con-
sideration of so technical matter by lay
men may SAVIOR OF rashness. but there are
one or two points In It's connection into which
even laymen may enter.
There Is no rule for the determination
OF the precise or proper range Of legitimate
profits in any commercial enterprise. Every
man will make just as much as he can. A,
VINO sells his own wares ut profit OF 100 per
cent. will denounce as robbers such men as
b and c, who make so per cent. or IS per cent
on that which A buys from them. There IL
neither moral nor commercial standard by
which profits may be measured or justified.
The law regulates rates Of interest on bor-
rowed money but fixes no limit to profit on
merchandise. As an economic theory. prices
and profits are regulated by supply and de-
| mand. and. in the main this principle holds
good
That under this theory raw cotton is now
worth more than it was few years ago may
not be questioned. The Increase in supply
has not kept pace with the increase OF the
| market few years ago the market was
overstocked and cotton sold in the neighbor-
hood of cents the pound. This was declared
to be ruinous to the planters, but IL is to be
noted thet they kept on planting. that they
even Increased their areas OF planting and
that no reports OF starvation came from the
cotton area.
The actual cost Of producing raw cotton
difficult Of deermi9atiol BY reason Of the
From such data as are obtalnable 1t may be
said that fairly good plantation. run upon
business principles and conducted as bust
that are, followed in commercial business.
can produce cotton at IRON a., 70 3 cents
soil. facilities for shipment and business
amount Of our Southern cotton is produced
little of it is produced under what may be
called strictly business methods. Much
of 1t is grown by small planters. blacks as we'll
one bale, five bales, or ten bales as a cash
crop. They do not depend upon cotton for
their living. That comes from the, vegetable
garden, the hog, pen and the poultry yard.
BY their own labor they produce the major
portion OF that which is required for their
snstenance A small field Of cotton is grown
which to buy clothing, coffee. sugar and
such utensils and implements as are .neoes-
sary in, the conduct of the farm. This may
be much or little according to the energy and
ambition Of the farmer and the extent OF his
farm.
The cost Of the cotton thus grown Is prac-
tiCnlly the labor OF the farmer. 1t is not
| accurately reduciblc to dollars and cents.
If cotton prices are low, he must go without
more or less Of that which he will buy when
prices are high. In this regard. the condition
Of the thousands of small planters in the
South is in no way essentially different from
the condition Of the small farmers in any
from the field and the harnyard Comforts
or Injuries, and the requirements heyond
the p9ssibty Of home pro66uC@n depend
be wheat. or sugar beets. or hay. or the prod
net of the dairy or the poultry yard. The
it by the farmer and his family But as
strictly business proposition it may be said
that the cost of producing raw cotton should
farm should even grow i for less than Chat III
properly conducted farm should grow
do that. but that fact only argues INDIFFERENT
or unbusnesslike cultivation. bale ap-
proS mates 500 pounds in, weight. Assum-
proft Of 50 per cent The average business
man Is quite delighted with a return Of 10
per cent, and the capitalist ia content with
much less than that Between the cotton
1eld and the mill there are sundry charges
for freight. storage. brokerage, &c. Max
price Of Q to 10 cents still leaves the farmer
a very handsome profit on his industry and
his Investment.
Upon this basis cotton AZ any figure above
10 cents the pound Ia either at a purely specn-
lative figure or is the result Of demand in
excess Of supply, with consequent enhance
ment Of prices az result OF competition.
In the immediate instance, Secretary Wilson
appears to have the better of the argument.
The planter has not profted as yet by the
recent high prices. for the reason that his
crop was sold months ago at lower figures.
The important question for the farmer is the
maintenance Of high prices, Should that
be effected, he will profit greatly upon the crop
which will be gathered this fall II is rumored
thnt offers have already been made TO some
planters of II cents, This may have been
done as bluff" with an idea Of inducing
others TO hold on for higher prices and so
create shortage in the market,
With so wide margin between field cost
and present market prices. Gen. Buffers
proposal that the mills inCrease the selling
price of manufactured goods is utterly un-
tcnahle, If simply means that all users OF
cotton CLOTH rich and poor alike. shall con-
tribute toward enabling planters to make
a profit far beyond TINT which is generally
regarded as fair and legitimate In commercial
enterprises. BERKSHIRE.
NEW YORK, Aug. 81.