The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1907-01-11
ISSUES ADDRESS.
Mr.. E. ID, Smith Discusses the
Cotton Situation Fully.
PROPOSES a REMEDY.

ana laat therefore the FdrGlefS,
Having a Monopoly SheH!a
Offer a Concerted
Resistance.
To the People Of South Carolina,
We have just passed through per
haps the most peculiar year in the
growing OF cotton and are passing
Through now an equally strange one
In the marketing Of ID. East OF ths
mississippi an unprecedented aeasor
in tho growing OF cotton was expert.
enoed,
This section suffered two Of the Sc,
verest storms that wei visited the
cotton belt! A frosu, earlier by three
or four weeks than ever visited the
belt and with moro disastrous results
West Of the Mississipki the growing
season was perhaps above the average
the gathering season fairly good; TIE
yield promising to be in this section
phenominslly large. In the earlier
ginnefs' reports these conditions and
their results seemed to be borne out.
In the later ginners' report, TO the
surprise Of every n interested In tn,
COTTON business, the yield in the fros
and storm stricken section was su,
priR1nglv large and in q like proper
tion the return from the favored sec
tiOn was correSpondingly small.
In addition to these surprising apt
Disturbing facts, the New York e1
changes met and widened the dlffa'
ence in the value of grades 80 muc
10 that the better grades Of cotton 1.
place Of commanding the ordinary dit
ference Of l 8 TO Ia per cent. pre-
MUM have advanced from 1875 to q.
high ag It's points difference. A NAL
having spot cotton, under theHe con
ditions had no practical idea Of wha'
his cotton was worth.
In addition to this the board pric,
or the future market, which In for1ne
.years Indicated the value OF cotton d.
Z liY0sed In New York and In New @
leana basis middling, now has no rela
astSs Whale YER to any such relative
To-day. for Instance, January
qua ,sp0s month, is, quoted In New
YORK 80 9.47 basis middllng, Will,
middling spos COTTON In the sam,
market ts quoted sb 1915, and th,
asaoe ErasS oEspl6S 00Gson would read
lily bring 1918 or mcie on our looa
market. All this confusion is the re
suit Of tho disturbing factor OF til,
farmors, the producers of spot cotton
demanding the value of their produot
Heretofore the prica Of cotton wa,
fixed arbitrarily by the New York ex
change and the value Of middling cot
ton and other grades was determineC
bV deduoting the carrying charges
from here to New York fIon the New
York quotations. To-day the value
OF spot cotton In the South is deter
mined entirely by the disposition o,
the farmer to sell.
In the last foW months l have visil
ed most OF the cotton growing States
and l found throughout the Soutl
that there iB among the masses Ct
growers . clearer knowledge OF tn,
general aituation and q more praotioa
conception Of what is necessary b.
meet the conditions for the benefit .
the producer OF cotton, and q clearer
idea OF the common laws Of busineA.
involved In the transaction of produc
Gion and nale, aupply and demand
and this iB surely working q revolutio,
in the COTTON business. 1t is elimi
mating to s large extont tho effect OF
gambling in futures on tho value OF
spot cotton and is rapidly divoroips
the gambling factor from the legiti
mate trade In the actual stuff.
Another element which is tending
to bring about this result Is the fac,
! that the unprecedented demand 70,
cotton goods through the world Ia en-.
abling the mills to contract for their
output on o basis whore they can pay
q romunelative price for cotton ano
still declare q large dividend for thet.
stockholders. The Southern mill
also having the advantage of position
ban pay moro for the cotton at thei.
doors than mills not 30 favorably sit
y uated. The rapid increase In the con
sumption Of raw cotton i, owing tt
the increase Of Bpindles.
The rapid increase Of Bpindles In the
South and tho consequent increase It
the consumption Of raw cotton b.
Southern mills have rendered them q
potent factor In making it possible tc
maintain o higher general average 70,
the price Of cotton. Let no one, how.
ever, be deceived by these condition.
In thinking that theso circumstances
alone will solve thegreab problem tina,
confronts the Southern people. The
cotton exchanges, the cotton brokers
the cotton Spinners must OF necessity
depend upon the margin Of difference
between what the cotton is original,
bought ut and what they ultimately
cell 1t a6 for their profit.
There fore, to sum up the whole cit
uatton, 1t resolves itself into this one
condition: That the producer Of cot
ton is the zoe out Of whom must COM
all the profits that are made by every
other individual who handles his prod
uob. In other words, II the ultimate
sale Of his cotton In the form OF raw
material, or the finished product
PnoWs o net profit Of one cent or -four
cents per pound above that which hi
realized For It, he has COTTON one GEN.
OF four cents. as the case may be. les,
than his produce Ia worth. Now