Gainesville daily sun. (Gainesville, Fla.) 190?-1938, 1906-08-13
kiNo corron.

Commenting upon the favorable
prospects for good cotton crop the
present season, The Wall street Jou'-
nal says crop of twelve million bale.
would he a great relief % large part
OF the industry oi the world. by assur-
ing mills nov in operation fairly
good supply Tor the coming year. A
crop OF this size would also have a
very important bearing on the money
and credit operations Of the country
Twelve million bales. OF FIVE hundred
pounds each, ~ ten cents pound
would have n farm value Of Elk hmm
dFed million dollars Ahoet two.thi'ds
OF this would e. into foreign trade,
and give the United States = credit Of
four hundred million dolars, or Sub.
staniially the same az last year.
In domestic finance, the cotton crop
IL OF she utmost importance, and lib-
eral yield il thing To which the South
looks forward with much expectation.
There IL probably no better collateral
for loans than raw cotton. At almost
any time the owners thereof can boF-
row money mp to twenty-five per cent
OF the market value While the cot
ton remains In the country, therefore.
the crop 10 capable OF commanding
cash advances 10 the amount oi -four
hundred aud fifty millions Of dollars.
Asa factor in the purchasing power
~ the cotton belt, the crop has enor.
nous significance, Between Septem-
Der first and January first, period OF
four months, probably two.thirds or
thFee.quaTters OF this crop will he
The volume Of transact
tions In the sale OF snch a proportion
OF the cotton crop will have so pass
through the hands OF the various
C classes OF retail and Wholesale traders,
aud 80 represents q stream OF business
Of colossal proportions, when taken as
4 whole.
What form the purchases Of the con.
Iumer will take Ia not easy to anIici-
pate. Only few years ago, when an
cotton crop was in sight, a
merchant In n northeastern portion OF
south Carolina ordered n carload Of
locks When asked what he meant
O do with them, he replied IL know
hat tho people IN the surrounding
ountry are going 90 buy something
nth the increased money No their dis.
o'al. They are likely 10 boy what We
ave IN stock, especially IL IL 10 Some-
hing for personal ornament and utility
ombined. Next TO clothing and food
hey want to add something tn their
oure furnishings and clocks seem 10
10 TO he the moot likely thing within
,eir reach, They are not expensive,
nd will be 20 many people n sign ~
lxury which the poor are always Aux.
'ua to get hold Of"
The broAdest bearing OF the cotton
Top on business 10 seen In its relation
foreign eIehange The capacity 10
rake . larger proportion than usual :
ith she foreign market means that
lr money market 10 apt 10 be all the
asier, on account OF this increase.
HchAnge, will be more favorable to
Ne United States, and our industries
nd our commerce, Ne we'll as our tinan.1
IAl institutions, will he lea likely 10 6e
'stricted IN their operations by tight
IoBey This 10 all the mote en-. I've.
ausr Of the prospect u the grain crops
lpplemsnIinR the cotton crop with a
beral proportion for eTpoSt Authot.
re on the 'ublec, fgne that We mar
ave two hundred million bushels Of
heat 10 spare ior ioTeign account
zst year ~ had one hundred million !
million more bales OF cotton than
let year. hundred million more '
ushsS OF wheA, Tor elpor, are among
he good things Of tho financial out.
iok