Gainesville daily sun. (Gainesville, Fla.) 190?-1938, 1906-08-11
KING COTTON.

Commenting upon they favorable
prospects for n good cotton crop the
present season, The Wall Street jour
nal says a crop of twelve million bales
would be q great relief TO q large part
OF the industry Of the world, by asiur-
ing mills now in operation a fairly
good supply for the coming year. A
crop OF this pize would slso have
very important bearing on the money
and credit operations OF the country.
Twelve million bales, OF FIVE hundred
pounds each. az ten cents q pound,
would h%e a farm value Of elk hun
dred million dollars. About two-thirds
Of this would gp into foreign trade,
and give the United States a credit OF
four hundred million dollars, or sub
stautialIy the same as last year.
In domestic finance, the cotton crop
IL Of the utmost importance, and q ib-
eral yield IL thing 10 which the Sonth
looks forward with much expectation.
There is probably no better collateral
for loans than raw cotton. Al almost
any time the owners thereof can bor-
row money up IN SevenlJ.fve per cent
OF the market. value While the cot
ton remains in the country, therefore,
the crop 10 capable OF commanding
cash advances TO the amount OF four
hundred and fifty millions OF dollars,
Asa factor in the purchasing power
OF the cntton belt, the crop has enor.
nous Significance. Between septem.
Der first and January first, n period OF
four months, probably two.thirds or
three.quarten Of this crop will be
marketed. The volume OF transac.
tions In the sale of such a proportion
Of the cotton crop will have TO pass
through the hands OF the various
classes OF retail ami wholesale traderl,
aud so represents = stream OF business
OF colossal proportions, when taken aS
whole
What form the purchases OF the con.
sumner will take is not easy 70 sntici-
pate. Only q few years sgo, when an
enormous cotton crop was in sight. a
merchant In a northeastern portion OF
South Carolina ordered carload OF
clocks When asked what he meant
to do with them, he replied; 81 know
that the people In the surrounding
country are going to buy something
with the increased money at their dis.
posal They are likely to buy what We
haze In stock, especially II II 10 some-
thing FOR persons ornament and utility
combined Next, To clothing and food,
they want In add something tu their
house furnishings and clocks seem to
me tn be the most likely thing within
their reach. They are not expensive,
and will be to many people a sign Of
luxury which the poor are always anx-
ious to get hold Of"
The bfoadest bearing OF the cotton
crop on business IL seen in its relation
to foreign exchange The capacity TO
shake a larger proportion than usual
with the foreign market means that
our money market 10 apt To be all tho
easier, on account OF this increase,
Exchange will he more favorable to
the United States, and our industries
aud our commerce, ~ we'll ne our imam
ciAl institutions, will be less likely TO be
restricted In their operations by tight
money Thn u all the more 81, be.
cause Of the prospect OF the grain crops
experimenting the cotton crop with q
liberal proportion for export Autho'i.
ties On the subject hgure that We may
have two hundred million bushels Of
wheat Ia spare For foreign account.
Last year We had one hundred million,
\ million more bales oi cotton than
last year, a hundred million more
bushels OF wheat Tor export sre among
the good things Of the financial out.
look