The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-02-27
SOUTHERN PROSPERITY AND THE
COTTON CROP.

on deposit and are in easy circumstances
and they know whether they are borrow
ing dangerously near the limits OF their
crecit. In order to ascertain from first
sources the relation between Southern
Pre- sperity and the cotton crop and tie
outlook for future growth and prosperity,
the Manufacturers Record addressed
letter to bankers in every Southern
State and devotes several pages to pub
fishing the replies. There are only two
from North Carolina, and we give them
below:
"a. w. Mclean, president Bank OF
Lumberton, Lumberton N. c.: The gen
er1l business situation in this section or
the South at present is more favorable
than it has been at any. time since the
civil war. The present conditions indi-
cate that our industrial prosperity has
only begun, and that tho future has
great things in store for us. The farm
ing interests in this particular section OF
the South, and, in my opinion, all over
TIE South are on better and safer
basis than they have been in half GER
fury. The farmers in this section are
comparatively out OF debt, and the de-
pcndence upon crop liens and mortgages
to make the coming crop will be confined
almost entirely to the negroes and the
less thrifty class of white farmers. The
deposits in our bank have doubled dur
ing the last two years, and this is true
OF many other financial institutions in
tins section. There is great activity III
building operations and IN municipal i'm
plOvcments, and all classes WlO have
money TO spare are looking for local in
Vestments in manufacturing enterprises.
This immediate section, being situated in
both the cotton and tobacco belts, is sim
gClarly favored, and the high price oil
cotton will increase the general prosper
lty. The negro having been practically
eliminated from politics., and the main
cause for race prejudice having been re-
moved, our people are paying less atten-
ten to their prejudices and sentiments
ard are looking more closely TO their
business interests. / beg to add that all
OF our people now feel a great sympathy
for the terrible loss sustained by the city
Of Baltimore"
"W. S. Blakeney, president the Bank of
Union, Monroe, N. c.: Taken as whole,
l believe the business conditions in the
South We're never better. The Manu-
lecturers Record has always been hope
full in tone and sanguine as to the future
OF 4he South-this even in, days OF com
Datative adversely. Now it has album
dant cause for rejocingsin the fruition of
its hopes and the fuldllment Of its pre-
dictons. Prosperity in the South is no
longer a matter of conjecture or proph-
ecy 1t is an existing condition which
We may see and feel on every side; and
one would be very pesslmistlc indeed to
be dissatisfied with the present financial
status as compared with other times in
our recent history. The immediate cause
OF this condition, more than anything
else, lies in the high price for cotton re-
ceEed by the producer and the immense
gains made by the holder OF spots. These
prices have not been reached, as some
coptend, by mere speculative manipula-
ton and fictitious enhancement, but are
really the result of reduced yields and
greater consumption. In other words, it
is the old law of supply and demand of
our staple products that mas made the
South so many millions richer. This
condition has apparently come suddenly,
but there are more remote causes that
should be taken into consideration. Five
or six years ago it cost more on an aver
&c to raise cotton than It was worth on
the market. That was dire situation
which the farmers were compelled to
meet by raising more diversified crops
and by the practice of the strictest kind
OF economy in all their methods That
experience had it's uses, land that policy
along with other causes needless now to
discuss, brought on the present era OF
prosperity. That was an experience
which the farmers would do we'll to re-
member; and it undoubtedly taught a
geat lesson in proving that small crop
of cotton is worth more than large one.
Whether that lesson will now be practi-
cally appropriated and acted upon is an
other question, but it seems not likely.
But, however that may be, the per cap
tia circulation of money has largely been
increased in the South here lately, ana
tfat is much cause for rcongratulation.
The farmer is in the saddle for the~time
hcng at least, and he should De wise
enough TO stay there. He has more
money in the bank than ne ever had pc
fore and the more general adoption OF
this business method has tendency 10
make him more ambitious to succeed
than ever before. A few years ago he
was compelled to buy on time at rum
Gus prices, and he was deprived OF the
benefit of competition under the hen law.
but now he can defy the lien law and
buy goods when and where he can make
the best trades. The great majority now
have the cash for their supplies and the
great majority of those who do not, can
get it at reasonable rates. This pros
plous condition is not confined TO the
farming class, but permeates nearly
every vocation and branch OF industry
Nearly all business in the South is SO de-
pendent and closely allied to the farm
ing industry that prosperity in 1t qulcS
ems the pulsations and means more lie
TO all other business Certainly an OH
locker in Vienna" having tried Doth'
would prefer the period OF high prices
and consequent business expansion "
low prices and consequent business stag
nation. The fact of the greatly increased
volume of currency is also made appal,
ent by the great rise in the vaiue OIL real
estate and the phenomenal increase ~
budding operations. The banks III ln!'
section are doing remarkably "ell' NY
withstanding the now constant ana sharp
,.,,,o+i+ion Thie town, tor 1nStdlce,