The Montgomery advertiser., 1905-02-16
Mir. Richard cheatham. Secretary of

Richard cheatham,
 Secretary. Mir. Richard cheatham. Secretary of
 the Southern Cotton Associations:
 Dear Sir-It gives me pleasure to comply with the request contained In your letter of February 9. out for the Southern Cotton AssOcia- tion. The Association will give an op- portunity for bankers. merchants. man. the cotton growing States to organize with cotton planters into a permanent cooperating force. having as its main object to make the lint cotton grown In the South bring a stable price of 10
 Such a result is feasible. It can certainly be accomplished, if all who will be benefited by 1t will help to accomplish 1t.
 Lint cotton raised in the Southern States is worth 10 cents pound. The manufacturer can afford to pay the the price of 10 cents a pound will not prevent fabrics made of Southern lint cotton from controlling the markets against all competition. Silk, flax. wool and cotton raised in foreign un- tries are the competitors of Southern lint cotton. Goods can not be ma7u- factured from these four raw materials made from Southern lint cotton whom the lint cotton costs the manutactur- CTS no more than 10 cents a pouni The manufacturer of cotton can not a pound for lint cotton, but a stable price of ID cents would help the man ufacturer by making more stable the price of goods manufactured from lint
 If the Southern States produced an- nually only the quantity of cotton re- quired by the mills. sales at 10 cents a pound would readily follow. It has hnen fha drFeDf HnnttIof in aiZa of the crops, and unbusinesslike man ner in which much of the cotton Is marketed by the planters and the gem eral want of trustworthy sources of information on the part of planters that have made possible great waste and loss to the South through the fluc- tuations in the price of cotton.
 Last year the crop raised exceeded by nearly 100000 of bales the amount needed for this years consumption. Buyers concluded the price could be and we were presented with the spec 1S.O0o.Ooo bales at over $1OO.oO0.OoO less than the price at which a crop of planters r.tVe eS raised Id aeSoo S0oe more 6re bales than will be consumed during the present year buyers proceed upon the theory that they should bv paid been paid had their crop been 2,000,0 poo of bales smaller. This has been very much the mode of procedure with ref erence to the sale of past crops. Sur " there must be a way to protect the planters and the cotton growing States from such losses. If the Southern Cotton Association receives the sup port which I believe 1t will receive protection can be had against such results.
 As an immediate remedy the meeting at New Orleans proposed:
 First-A reduction of acreage in cot- ton this year as compared to last year of 25 per cent, with a correspond ng reduction in the use of commercial
 second-The sale now of no cotton for less than 10 cents per pound deliv. cred at the ports.
 Third-A combined efrort to with draw from the market and carry over to next year 2,000,000 bales.
 The mere earnest declaration of these three purposes by the New Or leans convention stopped the decline in the price of cotton and carried It up over $5 per bale.
 You ask my opinion of the probable success of the work you have under taken. l answer that 1t depends en- tirely upon the success of the eff Tt to reduce the acreage planted and the fertilizers used this year. If the acre age Is reduced 25 per cent as compared to last year the crop. should not ex- ceed 9,000,000 bales. From the crop of last year there will be carried over B. OOO,OOO bales This will give a supply ilN@AA year Ol Il,UuutuUJ OalSS, aDOuL quantity which will be consumed by the mills. If the planters, informed thoroughly of the situation and co-Op- erating through this organizati n. make the reduction of production this year so that next year the mills will absorb the surplus carried over from last year, they will show to the world that 1t Is their intention not to pie surplus upon surplus, and the hold ITS of surplus crops will only be called on to walt twelve months for sales. Such intelligent conduct by the planters will inspire all people with confidence and help vastly the efforts to give cotton stable price of 10 cents per pound. It will make 1t easy to withdraw the present surplus of 2,000.000 bales from the market and to carry 1t over to next year. It will make 1t possible for the farmers to sell at practically 10 cents pound the balance of the cot ton which they hold.
 believe the cotton planters are in stronger financial condition than ever before. and I have confidence in their purpose to curtall the crop. From to sell except at approximately 10 cents. Of course some may be forced to do so, but I believe they are few The merchants and bankers should aid them and discourage sales at the pres ent prices, while at the same time they should urge reduction of the
 Your plan to reduce the acreage is most intelligent and you are immense ly aided by the tact that the surplus cotton Is still in the hands of the planters Those who are selling cot ton futures rely upon the planters to give up their cotton at present prices and are also N.lyiug upon another year of production. They are passing their opinions upon what has happened In years past. when cOndi- | tions vastly differed from those of the present time. Then the surplus cot ton had passed from the planters; now IhHV hold TRTaIYV ak kr keep it. If the croV IS reduced this year so that a price of 10 cents Is re- stored, your organization will develop strength for future years to help car ry surplus crop. You will be able to help perrect systems of low insurance and cheap interest and in many ot' s,r ways contribute toward establish. < ton.
 Cooperation is necessary If a stable price is to be given to our great CT ID. The accomplishment of such a result will benefit all of our citizens and ron all fwho dwell in the cotton growing