The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1904-12-21

whatever: the market was sus-
tanned entirely by the spinner
either buying future contracts
or spot contracts from exporters
who would buy the futures tc
cover the sale of same. At thai
time every one was predicting
an enormous crop of 12,O0O,OO
bales or over, and yet the spin
ne. was willing to pay nine anc
a half cents. The spinner has
bought cotton upto next July or
that basis, and I cannot think II
is to their interests to see cotton
as low as it is at present. The
speculator who sold this cotton
without hedging with futures
profits by this decline, but the
spinner certainly is hurt by it.
as he has bought the raw ma,
terial at high prices and no"
he may have to accept a low
price for the goods manufactured
out of same.
Gwen if 100000 bales have
actually been grown, it is Ger:
tain that if the farmer could
hold back one-half or three,
quarter million bales Of cotton
would certainly sell very much
higher than it is at present.
II received a cable from a
very conservative Liverpool
house about a month ago, say.
ing that if the crop did not ex:
ceed 11,25O,OOO bales, it would
mean seven pence in Liverpool:
surely, therefore. 100000
bales cannot mean four pence!
Now, the holding back o5
that much cotton remains with
the farmer. Of course, the banks
cannot be expected to lend on
cotton unless they are thorough.
" secured. The idea that bank.
ers should agree to lend $40 pei
bale on cotton when it is only
worth in the country $50 pei
bale, is of course absurd. The
bankers first duty is to see that
he protects his stockholder; ano
he has no right to make a bao
loan to a farmer or anyone else
On the other hand, the farmers
of the south should recognize the
fact that when they 60 to a bank
and ask for advances on thel1
cotton, if thev are willing to IN
sure the cotton, have it proper
ly warehoused, and give sufi.
cient margin, they are asking
no favor of the banker whatso
ever, but are simply making a
business proposition. He is offer
ing the banker the safest loar
that it is in the power of a bank
to make. What can be better
than cotton? It can be kept any
length of time, the quality does
not deteriorate, and it can al
ways be converted into imme
diate cash if the seller is willing
to accept, say, lac to 2-8c below
the market value. Therefore
if sufficiently margined, cotton is
certainly an ideal security.
::The bankers certainly shoulo
realize, however, that the lower
cotton goes the less margin is
required. In other words whe1
cotton was selling at l5c. last
wear, at least &c per pound mar,
gin should have been asked; bu1
with cotton at Z 1-2c, s.. to S.
per bale is certainly ample mar
oin The banker who refuses tc
Send on cotton except at an ex
orbitant rate of interest, and is
only willing to advance at pres
ent $50 per bale, is an enemy Of
the south, and is simply taking
advantage Of an unfortunate
situation to make money for him
self.
tThe majority Of farmers have
already sold at least tWo-thlrds
of their cotton crop, and receiv
ed full prices for same; there
fore, they surely must have
sufficient margin to carry the IN,
sold portion Of their crops in.
definitely, and not feel either
that they are under obligations
to anybody. Whether they will
do it 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 acreage in
cotton next season as they did
this season. thus insuring a con.
tinuation of ruinous prices, they
would hold at any rate a portion
of the balance and plant some
what less. If every planter would
agree to hold 10 per cent of the
amount of cotton he has raised
this season it would meant
the bureaus estimate is correct
1850, 900 bales. Of course, some
farmers have already sold every
bale they raised; and some would
find it impossible to hold any,
thing, but surely, the planters
should formulate some plan by
which they can judiciously hold
at Least 100000 bales if neces,
sary.
s:The exports so far this sea:
son are nearly 600,00 bales OF
.o+4o, ,,oo,o o,oS vot on1v fifteen