The Tupelo journal., 1904-12-09
A Great Slump ID lotion.

on the 3rd inst had a most depress-
ing effect on the price of cotton and
the result is now before our farm
err friends who have held their
crops for better prices IN a most
unfortunate shape. For several
weeks past the bears have been
hammering the staple in a frantic
attempt to lower the price and had
succeeded in lowering it to eight
cents when the Agricultural Blu
reau put out its reports based on
the ginners report, and placed the
Weld for 1904 at 12,1S2,O0O bales.
This statement accelerated the
downward tendency and prices
dropped with heavy thuds until
now the figures staring holders in
tho face range from six and a half
to sever cents. This decline in So
short a time, when money matters
were in satisfactory shape is un-
precedented and came as a surprise
to both bears and bulls, According
to this estimate there r six mil
lions of bales yet unmarketed,
which has never been equalled IN
the amount of any previous crop
remaining to be sold at this late
stage of the season. In the face OF
all this everybody engaged IN the
cotton trade stands bewildered and
wondering what is to come next.
The round up has not come yet
and the extent of the disaster
which the bulls have suffered can
only be conjectured. There is one
thing about it, however, Of unusu-
al interest to us in the south, and
that is thai the hurting is all on
the wrong side.
The hardest thing thai comes up
for an editor to write about is cot
ton. Usually the interest which
one has III the great staple is a
very remote one. 1t is a hard
thing to foretell what cotton is 60
inc to do. The wiseacres are often
badly fooled in their prognosis OF
it's course. The traffic IN the sta
pie is not based entirely upon de-
mapd and supply and the greater
part of its immense volume IS TIC
tltious. The trade in futures is IL
legitimate and exercises an %injuri-
Gus control oyer the trade in spots,
which is Legitimate. At this time,
when money is so abundant that
every branch Of trade is at high
water mark, the trade in futures
must be unprecedentedly large and
large sums must have been lost by
the bulls. In the face of this great
decline many Of these will have. to
withdraw from the trade and the
bears will stand in absolute con-
troll of the field.
In the perplexing situation that
confronts the farmers who are
holding cotton there is one pleas
ant fact to be noted. That is that
most of them are out of debt and
in shape to continue to hold until
prices get better. A systematic
movement throughout the cotton
region to hold what is yet rnsold,
would do much toward restoring
prices and put the staple at remu-
nerative figures. Many have sold
the larger part of their crops and
are holding only q small proper
ton Of their product. The instan-
ces in which entire crops are being
held are few and far between. In
many cases renters and share crop
pers have sold none and they are
caught in the trap that pinches
painfully. The year is coming to
a close and all these Will have to
suffer unless their landlords come
to their aid and make them advan-
ces The decline is very hard up
on this class, especially those of
them who are in debt.
The conditions growing out of
the great decline are yet unsettled
and at this writing it is impossible
to predict what will be tia result.
II seems to us that the bet thing