The Birmingham age-herald., 1904-12-06
Urges Planters, Merchants and Bankers to Hold for
 Higher Prices
PRESENT FIGURES ARE
 ENTIRELY UNNATURAL
Statement Is Issued to Cotton Men of the South Telling Why They
 Should Wait for
 Higher Prices.

New Orleans, December 4.-W. P. Brown, the great cotton king, has issued an address over his signature as fol- lows:
 ITO to Planters. Merchants and Brokers of the South; Cotton has declined to a point below the cost of production, Are you going to sell at present prices, or hold until you can get the market value for the balance of your holdings? The decline is unwarranted. To be conserv- ative, l will say that the balance of this crop should bring at least ten cents at the ports, and according to my judgment. the only way to obtain an advance is for the planter to keep his cotton on his plantation until the actual demand is sufficient to enable buyers to pay the proper value for the stuff The mer- chants who are carrying cotton should not force what they have on the mar ket, but stand firm and demand higher prices, or not sell The banks all over the south should stand by the mer- lants and planters, and not force them to sell their cotton at present prices. which they all know Is below the cost of production. The prices mean ruin to the south. It affects every branch of trade, and the only thing to do is for every man that Is interested in any man ner, shape or form to stand together For the sake of argument, admit that the crop is 100000 bales dhough l do not believe 1t is) the consumption at these prices will be at least Il 1.50000O bales. and the other half million bales will be small quantity to go into mill serves. The spinners of American cot | ton throughout the world should at least add this year to their depleted stocks half million to a million bales and the visible supply at the end of the season, l in order to prevent 'squeezes' and cor ners, should be at least 1,250,0OO bales.
 No Reason to Get Scared.
 Any well posted cotton man knows that this is practically correct, hence l see no reason for the holders of cot ton to get scared and sell at anything like present prices.
 Since the bureau report was issued on Saturday we have seen great many tele- grams from some of the very best cotton merchants scattered over the south to the effect that they believed the estimate was too large. l mention this to show | you that 1 am not the only one who thinks the estimate too large. However, 1t has had the effect of putting middlng
 
 l leans market
 1 The south went broke raising cotton at 5l2 cents and cents per pound in | 1S97-9S. and during that period everything l was cheap, well as cotton, and the cost of raising cotton was small as com pared to the present crop, which is the most expensive one ever grown. It would pay the farmers to sit still and not mar ket another bale of this crop, un.fl he can get above 10 cents and reduce hls acreage another season at least 15 per cent, and instead of raising another bum per crop raise only enough to supply the world.
 The last crop was only ten million bales, and 1t brought more money than any crop ever raised-much more than this crop will bring, unless the balance left brings much higher prices than those ruling today. With cotton at 7ih cents. at the ports, cotton plantations are worth today just about half what they were at this time last year. Now, every man that is interested in the south, regardless of the character of his business, should be interested In keeping up the price of cotton.
 World Must Have Cotton.
 Cotton Is one of the few things that the world must have, and the south has | a monopoly on the territory where 1t | 0 | vantage of the situation. There are so many things that can be raised In the south profitably, why not turn your att tention to other things and raise less cotton? We have been told that we need ed twelve million bale crop this year, and now that you have raised one close to that figure, they say you must sell 1t at give-away price. Stand together. both merchants. farmers and bankers and you will come out all right, but If | you throw your holdings on the market | you may rest assured that the spinner will buy it just as low as he possibly can, and I don't blame him for doing so.
 Tt is not the spinners of the world at | this time who are forcing the market down, 1t is the bear spectators Spin ners in every country of the world with ! few exceptions are doing the best bus 1 mess in the history of the trade. They | can afford to pay from to 10 cents per pound and make a good profit at the present prices goods are bringing.
 Can Pay Higher Prices.
 ..The consuming world are in position enancia1lv to pay higher prices today | than they have been for a great many years. Low priced cotton really ought
 to be a thing of the past. Look at the
 prices of wheat and corn We have raised big crops all over the world with tbe exception of this years wheat crop, l vet prices are double what they were a ! few years ago. A twelve million bales crop is worth ten cents and that ought to be the low price for a great many years to come. and 1t rests with the pro- | ducer to say whether or not he will raise more than the requirements of the world. | and become a pauper, or whether he will raise a moderate crop another season and grow rich.
 But the present moment Is the most important one. Hold firm, stand together and don't give your cotton away at pres ent prices"