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


Having a Monopoly Should
Offer 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 arc passing
through now an equally strange one
In the marketing of ID. East Of the
mississippi an unprecedented seasor.
In tho growing of cotton was expert
onoed,
This section suffered two OF the Sc
vorest storms that ever visited the
cotton belt, A frosp, earlier by three
or four weeks than over visited the
bolt and with moro disastrous results.
West Of the Mississippi the growing
season was perhaps above the average
the gathering season fairly good; tho
yield promising to be in this section
phenoninally large. In the earlier
ginners' reports these conditions and
their results seemed to be borne out
In the later ginners' report, to the
surprise OF every one interested In tn,
COTTON business, the yield in the fros
and storm stricken Bection was sul
prisinglv large and in like proper
tion the return from the favored sec
tion was correspondingly small.
In addition to these surprising apc
Disturbing facts, the New York ex
changes met and widened the diffe'
enoe In the value Of grades 40 muc
10 that the better grades Of cotton !,
place Of commanding the ordinsry dii
ference Of l 8 to Ia per cent, pre-
MUM have advanced from 1876 to q.
high aB 175 points difference. A mai
having spot cotton, under these 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 fOrme
years indicated the value of cotton dt
liy9red in New York and In New @
feAIa nABia middling, now has no rela
!eiLt15S L.t15S III llatevor to any such relative
To-day. for instance, January
Gne !Spog nlonth, ia quoted in Nov
YORK % 9.47 basis middllng, Will,
e m'iddling spos COTTON in the SAM,
market 10 quoted &b 1915, and th,.
q alise grade OF 8pl,6 obGS0n would read
lily bring 1916 or mNie on our looa
market. All this confusion is the re Z.
suit OF tho disturbing factor OF til,
farmors, the producers Of spot cotton
demanding the value Of their product
Heretofore the price of cotton wa,
fixed arbitrarily by the New York ex
change and the value of middling cot
ton and othor grades was determined
by deduoting the carrying CHARGE
from here to New York ;IoM 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 have visil
ed most OF the cotton growing States
and l found throughout the Soutl
that there is among the masses Ct
growers q clearer knowledge of tn,
general situation and moro praotios
conception OF what is necessary t.
meet the conditions for the benefit
the producer Of cotton, and q clcarel
1de8 Of tho common laws OF business
involved In the transaction Of produc
tion and Haie, supply and demand
aud this is surely working revolution
In the cotton business. 1t is elimi
mating to q large extent the 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 clement which Is tending
to bring about this result Is the fac,
> that the unprecedented demand 70,
cotton goods through the world iB en-
abling the mills to contract for Their
output ON basis whore they can pay
o romunelative price for cotton ant
still declare q large dividend for thei.
stockholders. The Southern mill
also having the advantage Of position
can pay more for the cotton at thei
doors than mills not 30 favorably sit
uetod. The rapid increase In the con
sumption Of raw cotton 1, owing tt
the increase Of Bpindles.
The rapid increase Of Bplndles in the
South and the consequent increase 1t
the consumption Of raw cotton b.
Southern mills have rendered them q
potent factor In making 1t possible to
maintain higher general average 10,
the price Of cotton. Let no one, how.
ever, be deceived by these condition,
In thinking that these circumstances
alone will solve thegreab problom that
eonfronts 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 originally
bought at and what they ultimately
sell 1t ut FOX their profit.
There fore, to sum up the whole alt
uabton, 1t resolves itself into this one
conditions: That the producer Of cot
ton is the one out Of whom must conn
all the pre- fits that are made by every
other individual who handles his prod
uot. In other words, If the ultimate
sale OF hia cotton In the form OF raw
material or the finished product
EaoWs q net profit Of one cent or f0u,
oents per pound above that which ht
realized for 1t, he has Cotton one oen'
or four cents. as the case may be. lesi
than his produce 10 worth Now
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