The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1909-09-23
SMALL COTTON CROP
GIVES THE FARMER A CHANCE
FOR GOOD PROFITS.
w. B. Thompson, Pres. Of the New
Orleans Cotton Exchange, Dis
cusses the Outlook interestingly.


cusses the Outlook interestingly.
Mr. w. B. Thompson, president
Of the New Orleans Cotton Exchange,
has sent out most interesting let
ter on the cotton outlook. He says
the record of the 1909 crop will con-
stitute an important chapter in cot
ton history. A moderate crop GER
tainly, dangerously short crop prob
ably, and a wholly Inadequate crop
possibly, is coming to meet demand
which could be satisfied only by the
greatest crop that was ever grown.
This conjunction of an overwhelming
need with insufficient supplies is
fraught. with tremendous possibili--
ties for profit or loss of profit to
the producer and of menace to the
cotton industry.
Whether the issue from this crisis
shall be fortunate or unfortunate,
whether the producer shall realize
his rightful profit, or shall fail to
use or misuse his present advan-
tage, and whether the spinning in
dustry shall go through this year Of
shortage with the minimum of in
convenience or the maximum OF
decentralization, will depend upon one
important particular, namely: the
distribution Of the crop. With the
producer and those who help him
abides the power to regulate the dis
tribution and to shape the result.
1t is a large advantage thus pos
sessed and a grave responsibility
thus entailed. If the power Is en-
ployed unwisely, or wasted in spas
modic efforts to squeeze" the buy
ers up to predetermined price, not
only will the producer fail to realize
the maximum Of the present benefit,
but he will help to cripple the man
ufacturing industry and curtail its
capacity for future consumption.
If the power is left unused, and
the producer, dazzled by the present
Unexpectedly high prices, rushes his
cotton to market, he will inaugurate
a movement which subsequent pro-
duce can not arrest, and will re-
peat the time-o1d mistakes of SELL
ing the bulk of his crop at the time
when the price is at the lowest of
the year. If the power is employed
wisely, the producer will distribute
the supply of cotton as evenly as
possible over the year, and thus rea-
lie for his entire crop the highest
price that an eager demand can pay,
and at the same time keep the de-
mand presently active and keen for
future supplies.
In other and more fruitful years
when the yield has been great and
Ithe demand relatively small. the
farmer has been compelled to accept
for his crop whatever he could get,
even though the return was less
than the cost of production. When
he complained at his lot, he has
been reminded by opulent philoso-
piers. that price is regulated by the
law of supply and demand, and that
II he made more cotton than was
needed. he must bear the, burden.
In this suggestion there is truth.
But a good rule must work both
ways.
The law of supply and demand
must be permitted to work for the
farmer as we'll as against him. II
he has to accept a low price when
he makes too much, he should re-
ceive a correspondingly high price
when he makes too little. If the
consumer profits by over-production
the farmer should profit by over
demand. There. is no, divine right in
the consumer to always make the
profit, nor Is there any justice in the
apparently generally entertained eX-
pectation that the producer must al
ways sustain the loss.
If it should so fall out that the
spinner has TO pay for the raw
material a price so high that his
season will be Improbable, it is to
be regretted, but the misfortune is
no greater thar hat of the farmer
who has to sell for the cost Of pro-
duction. If such loss is to be sus-
tanned this year it should not fall
upon the ia .er; nor will it so fall
if he will but exercise the same pru-
dence in selling his crop that he uses
in buying his clothes. He buys his
clothes when he needs them and has
the price; he should sell his cotton
when the other man needs 1t, and
has the price.
Efforts have been made to ad-
vance prices by covenants to with
hold cotton from the market until
an agreed figrre should be reached.
These effort have not been success
full. although they have had the eff
feet at time Of restricting offerings
and to some extent relieving the
pressure. But there are in this plan
two fundamental defects. The first
is. that it can not be fully accom-
plishcd, and the second il, that II
it could be fully accomplished, 1t
would automatically defeat its own