The Nevada County picayune., 1910-05-20
PROBLEM OF SELLING COTTON
Conditions That Will Make It Pos sibIe to Market Staple Slowly,
 or as Demand Requires.

It is we'll to consider every issue fairly and We should be just to all. We are apt to consider our side with out giving consideration to the other.
 There is a condition which bears heavily upon southern banks, and forces sales of cotton. This Is mis- fortune. and not fault To handle crops is tremendous undertaking, and that they are handled so we'll IS wonderful Were the commodity less available. 1t would be impossible, The demand 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 time" Were the time made other wise. there would be disaster.
 Yet. fall time" is itself pressure for sales of cotton.
 To take from usual channels the money with which to handle crops. IS to increase pressure. The thing runs in a circle. Loans must be called III DeCduSE SdAeS vii bC i4oAuSt 'tH 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- tunity 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 solution is pos sible only to the extent that cotton is security, and only to the margin of safety.
 It avails nothing to condemn for a condition which has come without fault It 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 fuctuate, banks must take tnls 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 cotton as security The extent of loans must depend upon the amount of the crop, and the law of supply and demand cannot be ignored
 The old style bale must go It is a relic of a time when we knew no better The objections to 1t are so many that they need not be recounted. The bale should not exceed 250 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 se- 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 it would be possible to mar. ket cotton slowly, and as demand con. tinued, and bulk sales would also be practicable.