The weekly Iberian., 1904-08-27
COTTON.

ern Cotton Corporation, of New
York, of which Mr.. S. +. B
Morse is presldent--we find some
interesting Statements about cot
ton that will doubtless be of ad
vantage to the cotton growers OF
this section TO know:
With scarcely ten per cent
change in any recent years in the
production of cotton, prices have
huctuated more than two hundred
per cent. In 1898 with a crop of
11,270,OOO bales the average New
York price was six cents, though
in many places in the South cot
ton sold as low as 4 and cents a
pound. During the present season
with crop of little over 10000
600 bales, or a difference of only
about 10 per cent, cotton has sold
as high as II to Is cents, and may
average for the year ~ cents.
These changes in prices moreover
are more rapid than in any
other product. Between the time
farmer starts from his home to
sell his cotton in his nearest mar
ket and the time he gets there,
prices may change $5 to $40 bale.
Under such conditions the plant
ing interests can never be on
thoroughly sound basis, nor can
manufacturing expand as it would
under more stable conditions.
But with prices fairly steady from
year to year, the worlds trade
would rapidly expand and in
creased production of cotton would
find an ever increasing market,
whereas now the production of
only a few hundred thousand bales
in excess of the actual needs of the
year, makes possible the breaking
down Of the price of the entire
crop. In other words, a surplus
of 500, 900 or 100000 bales, or 5
to 10 per cent. excess over imme.
diate wants, may be made under
present conditions to cause a de-
cline Of 800, 600, 900 to 100000,
900 in the price received by the
farmers for their crop. If Nature
favors the South with good wealth
er and other propitious conditions
and thus gives 100000 bales
more OF cotton than is temporarily |
needed, she may, instead of having
added $4,000 to the wealth of the
South, have lessened it by several
times that much. To overcome
these deplorable conditions, it
would only be necessary for the
planters to store that surplus, thus
taking it off the market until the
inevitable return Of short crop
year would restore far prices.
BY doing this they would make
any heavy decline in price impos-
sible, and would save millions, pos
sibly hundred million or more to
and at the same time
benefit the whole cotton industry
of the world. In 1851 Cotton
Planters Convention, held at Tai.
lahassee, Florida, reviewing the
wide fluctuations in the prices of
cotton, pointed out that such con-
ditiOns were alike Improbable to
the grower and to the manutactur.
or.
To overcome these fluctuations,
which are not known to so great
an extent in any other important
staple, that convention suggested
That the only possible remedy
would be found IN the establish
nent of a broad warehouse system
n which the surplus from years Of
arge production could be carried
over to years of short crops. The
of such a system is
now universally recognized. Such
/ plan is but an adaptation to the
cotton trade, on somewhat broader
ines, of the elevator system, with
,ut which it would now be impos-
'ible to handle the grain trade Of
he world.
Only a few weeks ago the Texas
Farmers Congress passed resolu-
ion saying that the development
If such system would save at