The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1905-06-17
Method, and Not the Accident OF Seasons
Should Regulate the Price of
Cotton

The marketing Of the cotton crop
of 1903 and 1904 gave to the Southern
business men an insight into the val
ne of cotton as a basis on which to
build a lasting prosperity for the
South, never before understood in the
full scope Of its meaning.
They saw a crop of 10, $50, 600 bales
sell for 5000, 600, 600, in round mum
berS, and that it was brought about
by two potent factors working in uni
son - limited production, resulting
from unfavorable seasons, supported
in the market by the wise tactics of
the strong Bull element in speculative
cotton. These two factors cO-Opera-
ting, taught the manipulatorS of cot
ton values a unique art in the subtle
art of finance, and indirectly pointed
the way of Southern progress along
lines that will as certainly lead to
StupenduOuS wealth and power as we
heed the lesson and apply its teach
ing.
The statistical strength given the
market by a supposed short supply,
was not in itself sufficient to hold pri-
EceS commensurate with the conditions
really existing. The Bull element,
however, catching on to the situation,
and realizing the latent strength of
cotton, bought largely of futures, and
to protect their holdings entered
actively into the spot market, and by
retiring thousands of bales, carried
the market over critical stages, and
finally concluding with brilliant sue
cess, the most remarkable campaign
ever waged in the history of cotton
speculation. The support of the Bull
element at weak stages undoubtedly
sustained cotton values throughout the
| entire market period, and but for that
support another history Of market
evolutionS might have been written of
that memorable year. AS it is, we
have but to duplicate the conditions,
and repeat the tactics to achieve a
like result for the next and succeeding
cotton year. No one will deny il all
the conditions that existed that year,
and the Bull element again prevails
over the Bear, that another harvest OF
good time would be reaped by the
South. Practically the same result
can be attained by methods that was
brought about by failure Of season.
| We can limit production to a maxi
mum Of 10. 500, 900 bales, by reducing
our acreage. This will supply n OF
the conditions. Ii the aid OK the other
is needed, the Bull can be counted ON,
with reasonable certainly to fill his
station and take his part of the profits
| Otherwise, our friends and cO-part-
ners in this movement, the merchants
and banking interests OF the South
will supply his place. l am satisfied,
however, that il the cotton growers
will leave off the June planting, and
adhere strictly to the IS per cent
acreage reducti IN, estimated by the
| Southern Cotton Association to have
been made up to the 25th OF May, the
bull factor will not be needed. Wher
the cotton world understands that
such a reduction has been made there
will be no effort to bear cotton undel
10 cents. Even the surplus will gt
at that figure. The mills fearing tx
! trust to the new crop for an adequate
supply will make a rush for the cottor
in sight, knowing that natural condi
tions might transpire with the condi
tions of a reduced acreageiand produce
a famine in raw cotton. This active
demand for cotton, coupled with (;
stiff holding by its owners, will carr,
the price to 10centS minimum. There
is nothing visionary in this statement
The conditions cited are real, and th'
conclusion drawn practically inevita
BILE. We have only to plant Is pc
cent less cotton this year than last
substituting food crops for June cot
ton, and the trick is turned.
FIRED E. WEST,
State Organizer S. c. A.