The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1907-11-20
COTTON And Finance.
The FIeecy Staple as a Factor in
American Trade.

Array OF Facts as to Cot
ton and Its Importance i'll Our
Business and Financial Affairs.
A recent pamphlet entitled Cot
ton as a Factor in American Trade,
issued by William A. Law. vice-pres-
ident of the Merchants National
Bank Of Philadelphia, contains I'm
teresting array Of facts as to cotton
and its importance in connection with
the business and financial status Of
the country. The deductions from
the figures given are startling when
they are collated. For instance:
The value Of the cotton crop, in
cluding cotton seed, for the last sew
en- years, has exceeded by over a
million dollars the worlds total gold
and silver production for the same
period. Approximately thirty mil
lion acres are utilized in the cultlva-
tion of the cotton crop in America;
The textile industries Of the United
States, which are mainly cotton, en-
ploy over S1,740, 100000 of capital
and 1,l56, 100000 wage earners, ex-
ceeding every other industry except
that Of iron and steel manufacture,
which employs about 80 l-3 per cent
more capital, according to the tigur-
es Of the census of 1905.
The cotton crop for the year end
ing August l, 1907, has been estima-
ted by the New York Fin ancial
Chronicle to be 13,550,760 bales,
which at II IL cents per pound for
Middling Uplands, probably tar
average, is worth over $500, 900, 000.
When it is remembered that for
seven years exports Of cotton amount
ed to Slightly more than the worlds
production Of gold, approximately
/ So, 800, 100000; that Europe takes
two thirds of the country's produc-
ton, exports last year amount to up
wards Of $3.50. .O00,0 900 worth Of cot
ton; and that the United States pro-
! duces thirds of the worlds total
supply, the figures indicate that the
hope of the ending of the money
/ famine" in New York rests with the
freer movement of cotton. In fact.
the refusal Of the farmers to sell at
what they considered too small a
price may well have played an i'm
portant part in postponing the inflow
Of gold from Europe which is de-
pended upon to ease the financial sit
! uation.
AS we pointed out recently, how
ever, the situation is peculiar in the
fact that, while the hope Of the II
nancial situation rests with the far
mers' selling of their cotton, the
money stringency is itself tending to
lower the price below that which
they considered to be too low when
they inaugurated their holding poll
cy. Such farmers as can do so owe
it to themselves in the present crisis
to continue to hold for the higher
price that must ultimately rule wher
the demands Of the spinners become
imperative. In the meantime suct
farmers as have obligations that vii
compel them to turn loose their stu
alton by drawing gold from Europe
even though they do so at their owr
injury.
And as we pointed out at another
time, the farmer who does sell cot
ton owes higher duty to his OWL
section to put the proceeds OF such
sale in the banks to which he must
look for financial help either directly
or through the merchant with whom
he deals. Every farmer who boards
his money. hurts the situation not
only by keeping money out of circu,
lation but by making it more ditfi.
cult for the price of cotton---depress:
ed along with all other products and
! out-put---to rise. And, in this con,
nection the banks of the South that
are feeling the money famine" only
because they have helped the farm.
crs to hold their cotton for better
price. will be benefited by the &C.
| ceptance by farmers Of the New
| York exchange offered them by the
spinners in payment of their crops.
With money in New York being
boarded by the banks, with money
for the cotton coming in from Eu-
rope in gold shipments, the only way
in which the spinners and the South
ern banks may get the money to pay
for cotton is in the medium of New
York exchange. The exchange is
good as gold for all purposes, is ac-
cepted by the banks and taken by the
merchants in payment of debts. The
farmer who has cotton to sell and
who refuses fcr it any thing but cash,
simply increases the trouble which
has put down the price Of his crop,
makes it more difficult for the banks
to supply the money and consequent
ly for the home spinner to buy cot.
ton freely and at liberal price.
The entire situation with respect
to the South and its present harvest
problem is a battling one; but, after
the paramount issue of obtaining for
his years work as nearly as possible
what it is worth, the chief obliga-
ton of the farmer who sells cotton is
to so use the proceeds that they shall
go towards increasing the money in
circulation in his own section, as well
as towards bringing money into the
country to ease the general situation
and to make for better prices Of all
products both agricultural and in
dustrial.