The Birmingham age-herald., 1906-01-13


 m New York. For the past three months | contracts for middling cotton have been selling in New York at prices only lew points higher than spots in the south although the cost of delivery from south ern Interior points 10 New York ranges from F cent to 1 cent per pound. Ihese conditions show fictitious values. oeea- stoned by the fact that spectators take advantage of the farmers inability 10 combine on a price or to act In unlsoh'
 Accomplished Great Results.
 Your association, however. has already accomplished great results and mas shown beyond controversy the power oI organization. Within the last two or three years southern farm proporeties have in- creased in value no less than one billion dollars, and during the last six years the total value of the cotton crop, nelud- ing seed has been 8 600,0O00o0. against S2 1sO, 100000 for the preceding six years. a gain of S1.400, ,000000 over the preceding period Tn the last nine years the deposlts | in southern banks have increased III greater proportion than those of any other section of the union, from S32l ,0Oo,oOO in leso to S767 00O, ,000 in 1905, and the banking power of the south today, as represented py the deposits, capital, surplus, undivided profits and circulation of its banks, IS no less than s1000,000o00.
 Closer Feeling Exists.
 ''It is gratifying to note the closer feel ing that now exists between the southern farmer and the banker. Only a few years ago the banker was looked upon by the farmer as a kind of money shark, whose mission was to take from him in the way of discount and interest, whatever money that was left to him after he had settled with the tax collector. The farmer felt that he belonged to the bank; whereas E1 Ina obligation has shifted, and the banks now show a net credit in his favor. The prosperity of the southern banker depends absolutely upon that of the farmer, whose welfare, however, can be greatly en- haneed by iudcous reciprocity on the part of the banker The institution with which l am connected has in the past ten years devoted much attention to ac- counts of country merchants and farmers, and has during that period advanced them at legal rates large sums of money. We believe that there is no safer collateral than the crop lien, the mortgage on the black mule or the red COW, that Is given by the farmer. who, having learned In days of diversity how to pay the interest on his obligations, has not forgotten in these better times how to pay the prin- cipal; and during these ten years, al- though we have advanced hundreds of thousands of dollars on farmers securities, our losses on this class of loans have been less than one thousand dollars.
 "We are coming now to a new stage in southern development; we are dealing in larger amounts. and our business methods are changing; the farmer will no longer pay usurous rates of interest, and feels that he is entitled at times to larger lines of credit and fair rates. The southern banker, with his power to loan so greatly augmented, is more than will ing to make these larger advances upon proper security. The value of collateral increases directly with it's availability and conVertibility Into cash, and judged by this standard, there can be nothing better than bale of cotton, for which there is always a market. Cotton, how ever being a pershable commodity, high ly combustible and easily damaged by eX posture to the weather, should be careful ly stored in some place where tho danger from fire is reduced to a minimum, where insurance rates are low, and where there is no risk of damage from the elements.
 Need of Proper Warehouslng.
 This leads to the discussion of what Is perhaps the greatest need of the southern farmer today; proper warehousing for his cotton. Up to a few years ago the cotton crop was marketed in the course of three or four months; great mass of cotton was rushed to the market to be sold at whatever price consumers were willing to pay; the railroads were strained to their utmost capacity to furnish cars for it's transportation; banks had to rediscount to the full extent of their credit in order to provide themselves with funds for the rapid handling of the crop, so that by the time it's size was known, and people were able to figure definitely on the worlds wants, and prices had risen cot- ton was all out of the hands of the farm CTS. Conditions for some years past have been gradually improving in this respect, and now the cotton season extends over six months in the year, and many farm CTS carry cotton in their gin houses until May or June, taking their own time to dispose of 1t. Their ability to hold, and the power of the banks to carry 1t for them has increased, and the one great want which remains yet to be filled is provision for proper facilities for storing cotton. The interest of all connected with the handling of cotton, the railroad and banker, as well as the farmer and mer- chant. demand rational methods In It's care and marketing. To obtain best prices the grower must cooperate with the middle men and carriers to minimize the loss in weight. or damage that ensues be- fore bale of cotton finally reaches the consumer This loss is always consider ed when the initial purchase is made, and
  ducer Shrinkage. sampling. and country damage cost the farmer over ten million dollars every year, as the "city crop made up of samples usually amounts to about 200 GOO bales, and there are usually from 100000 to 100000 bales made up of pickngs from damaged cotton. It fol- lows then that a system of warehousing that would minimize damage and compre- hensive enough to make sampling suf- ficient, would save good portion of this large annual loss.
 Should Be Negotiable.
 "A warehouse receipt should be negoti- able on it's face, and should state clear ly the quality and quantity of the com modity for which 1t Is issued. There should be warehouses at convenient dis tributing points all through the south of sufficient capacity to meet the wants of the adjoining territory, and of such con- struction as to carry the minimum rate of insurance. These warehouses should be fully guaranteed by some solvent com pany of national reputation so that a cotton receipt issued by a warehouse in Meridian or Shreveport, would be good delivery to a mill in North Carolina or Massachusetts, and to the railroads, and 1t should be as good collateral to a bank in Boston, New York or San Francisco, as to one in Houston or New Orleans. In this way the holder of cotton would be assured of low rates of interest; the cotton crop would move more slowly and nationally and would extend over a period of six or nine months of the year; there