The Neshoba Democrat., 1910-05-19
PROBLEM OF SELLING COTTON
~onoltIors That VIII Make 1t Pos
s'oIe to Market Staple Slowly,
or as Demand REQUIRES.

1t is we'll to consider every issue
rairlv' and we should be Just to all.
we are apt to consider our side with.
out giving consideration to the other,
mere is condition which bears
neaVlly upon southern banks, and
iorces sales of cotton This is mis-.
iortune, and not fault To handle
clops IS tremendous undertaking,
ana that they are handled so well Is
wonderful. Were the commodity less
available, it would be impossible The
uemand for money with which to
handle cotton, taxes the resources of
banks to the utmost This demand
and necessity forces collections. and
requires that loans be made on fall
tine Were the time made other.
wise, there would be disaster.
Yet, fall time" is itself pressure
Tor sales of cotton
TO take from usual channels the
money with which to handle crops, is
to increase pressure. The thing runs
IN circle. Loans must be called
IN because sales will be made; and
sales must be made because loans
must be called In.
Sales to merchants must be made
on fall time" because then cotton
is sold and then they have money;
and they must sell on fall time" be-
cause their own paper natures at
fall time" This runs in circle. or
a sort of endless chain of necessity
and demand.
The situation leaves little oppor-
tunlty for individual election writes
Lee Young, in Farm and Ranch. Pres
sure makes sales, and sales make
pressure.
To break the circle of demand and
pressure, changes in time are needed.
So long as this continues, cotton
must be sold; and so long as it is
sold, this must continue
The ultimate solution must rest
with banks and the mercantile COM
munity. With them a solution Is pos
sible, only to the extent that cotton
is security, and only to the margin
of safety.
1t avails nothing to condemn for
condition which has come without
fault. 1t behooves us to solve the
problem, and before it may be solved,
there must be fullest consideration
We repeat the statement, that solu-
tion must begin with banks and the
mercantile community. Nor must the
impossible be expected. The fall
time system imposes immense bur-
dens, and demand for money made
by rapid sale, makes such demand
that banks stagger under the load.
With millions of the best security,
southern banks are often sorely
pressed for money.
A commodity will be security for
loans only to the extent that it is
safe against fluctuations. AS cotton
prices fluctuate, banks must take this
into consideration, and loans can be
made only to such amounts as are
reasonably below probable values.
To find relief from necessity for
rapid sales, 1t is necessary that there
should be a system of loans with
SoeIoh oo oCSul Ivy. lie SSIeIlL Ol
loans must depend upon the amount
of the crop, and the law of supply
and demand cannot be ignored.
The old style bale must CO. 1t is
relic of time when we knew no
better. The objections to 1t are so
many that they need not be recounted.
The bale should not exceed $50
pounds, and should be wrapped in
cotton and waterproof paper. It
should be so secure from the weather
that it may be in water, and yet re-
main dry.
The waterproof bale is the only Sc
cure one, when we consider all con-
ditions of transportation and storage.
With such protection, and with
warehouses properly constructed and
managed, and bonded, and with such
classification as should make buyers
secure, cotton would be the best pos
sible security.
Then 1t would be possible to mar
ket cotton slowly, and as demand con-
tinued; and bulk sales would also be
practicable