The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-11-19
Confidential: Not For Publication.
New York. October 21st. 1907.

New York. October 21st. 1907.
Dear Sir: Even among those whose
business it is to be well informed upon
commercial and financial subjects,
there are few who realize how i'm
portant a part the American cotton
crop plays in American finance. As q
matter of fact, during the past three
years our exports OF cotton nave
furnished an average of 80 per cent #
the balance Of trade in favor Of the
United states, ana were it not for the
command which these exports have
given America over Europe's gold sup
ply. it is probable that the business de-
preston which we are now experience
ing in America would have much
sooner suoeryened.
The annual balance of trad in ia
vor of the United states, for the past
ten years. as compared with the value
of our cotton exports, is as follows:
axe the liberty Of addressing you
upon this subject, because, in my
opinion, there is today developing in
the cotton trade a situation, which. #
il be not speedily relieved. is liable by
its continuance to precipitate a 2
cfal crisis more acute than anything
we hare as Yet felt.
Despite the fact that cotton is to-
day salable III all the Southern mar
llets at eleven cents a pound or more
a price that admittedly returns the
producer a large profit; despite tn
fact that nearly all expert ~authorlucS
agree that the American crop of cot
ton is in excess of the prospective de-
mand: des pite the fact that the
worlds visible supply of cotton IS the
largest on record and that the visible
and invisible supply. taken together,
on the 1st of September, are proba-
bly, equal to one-third the worlds
annual consumption. and constitute d
reserve hitherto unheard of, despite
the fact that the market for cotton
goods is rapidly declining-prices h2E-
ing been reduced from - per cent to
20 per cent during the last ten days
and the market for yarnS absolutely
demoraliZed; despite the fact that the
monetary ~stringency throughout tho
south is increasing in severity and thai
failures of banks are almost of daily
occurrence. ard despite Il daily in
GREASE il the number of unemploySi
and q constant widening of the area OF
depression. cotton is being marketed
at q relatively slower rate than ever
before in the history of the trade.
As a consequence, the entire ma
chinery of southern, and, indeed OF
national commerce, is being dlSarTang-
ed and the longer this state of affairs
is allowed to continue, the more Sc
we're Will be the inefitable collapse.
The New York Herald of SATURDAY
reports that-Ye sterday a Bremen
ship of ten thousand bales capacity
left Galveston in ballast. no
cargo was available ana this state
of affairs exists in a year in which
the exportable surplus Of the American
cotton crop is probably not less than
eight and one-haIf million bales. and
in which the exports. up TO the pres
ent time, are the smallest on record
This situation. exists because the
Southern planter has been persuaded
BY his agricultural organizations, his
and his politicians, til It
his cotton is worth Is cents q pound.
and that il he refuses to Sc. it for less,
the ~spinners Of the world must come
to his terms.
If there ever was a conspiracy IN
restraint OF trade. that condition no"
exists in the cotton states of America
Superimposed upon it, and made pos
siple because of it. a speculative
corner in contracts for the delivery Of