The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-12-17

Now, the holding back OF that
much cotton remains with the farmer.
or course, the banks cannot be eX-
peCted TO lend on cotton unless they
are thoroughly secured The idea
that bankers should agree to lend $40
per bale ON cotton when it is only
worth in the country $35 per bale is,
OF course, absurd. The bankers first
duty is to sec that he protects his
stockholders. and he has no right to
make bad loan TO a farmer or any
: one else. on the other hand, the
farmers of the South should recoE-
niZe the fact that when they go to a
bank and ask for advances ON their
cotton, if they are willing To insure
the cotton, have it properly ware
housed and give sufficient margin they
are asking no favor Of the banker,
Whatsoever, but are simply making a
business proposition. He is Offering
the banker the safest lo;tn that it is
in the power Of 4 bank TO make.
What can be kent any length of time;
the qality does not deteriorate, and it
can always be converted into irnmc-
date cash if the seller is willing to
accept. say i-4c below the market
value. Therefore, if sufficiently mar
gined, cotton is certainly an ideal Sc
security.
'"rhe bankers certainly should
ton goes the less margin is required.
In other words. when cotton was
selling at Is cents last year at least
two cents per pound margin should
haze been asked, but with cotton al
cents. SO to IS per bale is certainly
ample margin. The banker who re-
fuses to lend on cotton. except at an
exorbitant rate of Interest, and is only
willing TO advance at present $50 per
bale. is an cnelny of the South and
is simply taking advantage of an, UNI
fortunate situation To make money
for himself.
THE majority OF farmers have al
ready sold at lease tWO-thirds of their
crop and received fun price for same;
therefore, they surely must have Suf-
ficlent margin TO carry the unsold por-
ton of their crops indefinitely and not
feel either that they are under obltga-
tons to anybody. Whether they VIII
do if or not is another question, but
surely one would think thai 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 Il cOntin-
nation Of running prices, they would
hold at any rate a portion of the bal
ance and plant somewhat less. II
every planter would agree to hold 10
per cent. of the amount of cotton he
has raised this season it would mean
if the Bureaus estimate is correct
/ IA million bales OF course, some
farmers have already sold every bale
they raised. and some would find it inn
possible TO hold anything, but surely
the planters should formulate some
plan by which they can judiciously
hold at least 500 900 or 100000 bales
If necessary.
"H0WeVer there is no use in giving
advice. 1t all remains With the plan
ter, but it is the duty of every South
eln newspaper to see that he is in
formed Of the true situation of alta rs,
and that he is not scared into selling
his cotton below it's value by hearing
only the views expressed by chose few
individuals who will increase their
profits the more cotton declines.
'.At present the situation of the
south is best expressed i'm the words of
Mississippi poet
"Of all sad words by tongue or pen,
The saddest are these:
| held for tent"
but the farmer who now sells, when
cotton again reaches &c ard 10c., viii
be saying.
81 wish to Heaven
had not followed the bears
And sold out at seven"