The Savannah morning news., 1904-01-31
SPECULATION IN COTTON.

IN AOllONs
The advances and declines in the
prices of cotton futures at the present
time are so great that only those who
have big bank accounts can afford to
take chances in the cotton future mar
ket. On Friday there was a decline
of SIS to IS points, and yesterday there
was a sensational rise in prices. Large
margins are required, and even then
the margins are some times wiped out
before brokers can communicate with
their principals.
We do not know to what extent
Southern money has been put in cot
ton futures this season, but it is a
safe statement that the most of that
which has been put in has been lost.
We do not refer to the big spectators,
men who count their wealth by the
hundreds of thousands of dollars. but
to the farmers and country merchants.
The latter are the ones who suffer
from these sensational changes which
are taking place in the prices of cot
ton futures. This year they have been
advance to almost unprecedented
prices that, from all accounts. they
have been specializing heavily. Prices
have advanced, but in advancing they
have frequently declined, and the de-
clines have been sufficiently great to
wipe out the margins of the small
spectators If, therefore, as we sus-
pect, a great many Southern men have
been specializing in cotton futures this
season the probabilities are that very
considerable per cent. of the money
received from this seasons cotton crop
has gone into the pockets Of commits
sion brokers and the big spectators.
Many times we have expressed the
opinion that If there had been no
speculation in cotton futures by South
ern men since the close of the Civil
War the South would now be about the
richest section of the country. If the
money that has gone to enrich the big
spectators in cotton futures and the
commission brokers had been invested
in home enterprises, and in the devel-
opment of the South's resources, the
taxable wealth of the South would be
twice what it is now.
And from reports appearing in the
country newspapers it is apparent that
the cotton farmers are preparing to
enter into another kind of speculation.
They are going to greatly increase their
cotton acreage. Last season $4,000, 900
acres were planted in cotton, and a
very large acreage was planted in corn.
The season was favorable for the corn
crop and unfavorabIe for cotton. 1t
looks as if there would be very little
corn planted this season, but that the
area devoted to cotton would be very
large. If the season proves favorable
for cotton the crop will be large enough
probably to send the price much below
what it was at the opening of this
season. In that event the cotton farm
ers will be in trouble, and that means
hard times for the country merchant.
In fact. it means hard times all along
the line.
If the farmers are wise they will not
give their whole attention to cotton.
small increase in the acreage would
not, in all probability, bring about
such an increase in the crop. even if
the season should be favorable, as to
send the price down below the profit
line. If the farmers will only be con-
servative, they can continue their pres
ent prosperity for years, but if they
go into cotton growing on an enormous
scale, simply because the price of cot
ton is high now, there isn't much doubt
but that they will encounter financial
trouble.