Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1904-12-16
"Now the holding back of that much

Now, the holding back Of that much
cotton remains with the farmer. or
course, the banks cannot be expected
| to lend on cotton unless they are thor
oughly secured. The idea that bank
ers should agree to lend $40 per bale
on cotton when 1t Is only worth In the
country $35 per bale, Is Of course alb
surd. The bankers first duty Is to see
that he protects his stockholders; and
he has no right to make bad loan to
farmer or anyone else. On the 9TH
er hand, the farmers Of the south
should recognize the fact that when
they go to a bank and ask for ad-
] vances on their cotton, IL they are will
ing to insure the cotton, have 1t prop
erly warehoused, and give sufficient
margin, they are asking no favor OF
the banker whatsoever, but are simply
making a business proposition. He
Is offering the banker the safest loan
that 1t is in the power Of a bank to
make. What can be better than cot
ton? It can be kept any length OF
time, the quality does not deteriorate,
and II can always be converted into
immediate cash II the seller is willing
to accept, say, lac to 3-8c below the
market value. Therefore, II SUFFICIENT
ly margined, cotton Is certainly an
ideal security.
"The bankers certainly should real
lie, however, that the lower cotton
goes, the less margin Is required. In
other words when cotton was selling
at 15c last year, at least &c per pound
margin should have been asked; bat
with cotton at TIC, SO to IS per bale Is
certainly ample margin. The banker
who refuses to lend on cotton except
at an exorbitant rate Of interest, and Is
only willing to advance at present $2O
per bale, Is an enemy Of the south, and
is simply taking advantage Of an un-
fortunate situation to make money for
himself.
"The majority Of farmers have al
ready sold at least two-thirds Of their
crop, and received full prices for same;
therefore, they surely must have suf-
ficient margin to carry the unsold por-
ton Of their crops indefinitely, and not
feel either that they are under obliga-
tions to anybody. Whether they will
do 1t or not is another question; but
surely, one would think that instead OF
selling their cotton below the cost OF
production, and putting as much acre
age in cotton next season as they dld
this season, thus insuring a continua-
ton of ruinous prices, they would hold
at any rate a portion Of the balance
and plant somewhat less. II every
planter would agree to hold 10 per
cent of the amount Of cotton he mas
raised this season 1t would mean-n
the bureaus estimate is correct $780,
900 bales. or course, some farmers
have already sold every bale they rails
ed: and some would find 1t impossible
to hold anything, but surely, the plan
ters should formulate some plan by
which they can judiciously hold at
least 100000 or 100000 bales If neces-
sary.
1.-The exports SO far this season are
nearly 100000 bales cotton more than
last year. and the domestic spinners'
takings over 100000 bales cotton more,
and yet only fifteen weeks have pass
ed. The stocks at the ports are now
only $4,000 bales more than last year,
and $4,000 bales less than the year be-
fore, and judging from freight en-
gagements over 100000 bales cotton will
be exported from this port alone, dur
ing the balance Of this month. More
cotton has been sold ahead to spinners
therefore must be bought by cotton
buyers, than probably ever before IN
the history Of cotton and this demand
will certainly enable the southern
farmer to get rid Of what he wants
to sell Of the balance Of this crop at
remunerative prices II he will only
market same judiciously Instead OF
getting panic stricken and all try to
see who can sell first.
Certainly every one interested IN
the south must hope that the planter
will not sacrifice the balance OF his
cotton, as it means the depreciation
in value Of every interest in the south.
Let every merchant in the south re-
member what they passed through In
1898, and 1 believe they Will then
do what they can to prevent a return
of those conditions.
However, there Is no use In giving
advice. 1t all remains with the
planter; but it Is the duty OF every
southern newspaper to see that ne Is
Informed Of the true situation OF al
fairs, and that he Is not scared INTO
selling his cotton below its value by
hearing only the views expressed by
those few individuals who Will in
crease their profits the more cotton
declines.
AT present the situation Of the
south is best expressed in the words
of a Mississippi poet
"'Of all sad words by tongue or pen,
The saddest are these:
L held for ten.
But the farmer who now sells, when
cotton again reaches 9 and 10 CENTS
will be saying
~ wish to heaven,
| had not followed the bears,
And sold out at seven.'"
FRANK B. HAYNE.'