The Savannah morning news., 1904-10-14
THE INDEPENDENT
FARMER.
COTTON

/ n OPINION
| among cotton farmers on the question
of holding cotton. They feel
they are free this season to
! discuss it for the reason that
they occupy an independent po-
sition. They are not in debt to the
Banks, the cotton factor or TO the coun-
try merchant. They have money in
the banks and in their pockets. Here
tofore the great majority of them have
| found it necessary to market their cot
ton as soon as it was ginned. Now
they are in a position to hold it until
next spring. if necessary. Instances
are being cited in this state Of farmers
taking their cotton to the nearest mar
ket, and, failing to get their price for
it, have carted it home again. There
fore they are in a position, as stated,
| to discuss the question whether it is
/ better to hold or sell cotton. AS far
as we are able to discover their
| disposition seems to be to sell a part
of their crop and to hold part.
The spinners are, OF course. arguing
that if the crop is going to be much
over 100000 bales the price will be
lower than it is now A prominent
New England cotton mill man is quot
| ed in the New York Journal of Com
merce as saying that the world can
not take more than 10000 900 bales of
American cotton at 91b cents a pound
in New York. He says that if the
American crop reaches II 900 bales
the mills will not be able to pay more
| than ~ cents for it, and that if the
| crop should be as much as 10000 600
bales not more than 615 cents. His
argument is that the world has only
SO much money to spend for cotton
goods, and that in proportion as the
supply of raw material in this coun-
try goes above 100000 the price will
decline. He calls attention to the fact
that at least ope-third of the Amer
lean spindles were idle through the
past summer, that many Of them are
idle yet, and that deferred trade is
lost trade.
OF course, there is something in what
he says, but the fact must be taken
into account that it is to his interest
to get cotton at as low a price as
possible. He undoubtedly takes a pes
simistic view of the situation, be-
cause the cotton manufacturing in
dustry has been greatly depressed for
quite a long time.
On the other hand the king of the
cotton future market, Mr.. w. p.
Browne, is of the opinion that the
country is on the eve of the great
est period of prosperity in it's history,
and that it will be many years be-
fore cotton falls much below 10 cents
a pound, even though the American
crop should be as much as 12,OOO000
bales. He points out that on Sept
1, the amount Of American cotton in
sight was only 461, 900 bales, not much
more than enough to keep the spindles
of the world busy for a day. that the
worlds markets are practically bare
Of cotton goods, that the jobbers and
retailers have not been keeping up
their stocks for the reason they thought
there was a prospect of getting cheap
er goods, but that they are going to
ne MISTAKEN because the world Is bet
ter able to take 10000 600 bales of 10
cent cotton than it has ever before
been TO consume 100000 bales Of
cotton at that price, owing largely to
the enormous output of gold. A big
output of gold makes the prices of
labor and of commodities high, and
consequently the cotton farmer may
rest assured that it will be a long
time before ne will have to sell his
cotton much if any below 10 cents.
The cotton farmer can take these two
views and guide himself accordingly.
If the crop should turn out to DE about
as large as was that of last year,
the chances are the price will go con-
siderably what it is now, but If it
should be as much as 11,5OO0OO or r.
100000 bales, the price will remain
somewhere around 10 cents a pound. if
Mr.. Browne is right in his view of the
cotton situation.