The Birmingham age-herald., 1911-11-27
LETTERS TO EDITOR
Regarding Cotton

To the Editor of The Age-Herald: r
 The press dispatches few days ago were headlined with Forty Millions for farmers to help them hold their cot ton, with a. proposition well nigh absurd, if not altogether impracticable. It proves, as many times has been proven. that shoemaker politician had best stick to his last; that well meaning persons some- times arc the tools of schemers.
 As to the plan of advancing to planters $25 per bale on their cotton, without in- terest, mark you, but a. fixed charge of $1 per bale for weighing and chasing, and a fixed price at which they must sell (the lenders to share to the extent of one-fourth of the advance in price, that is about $4 per bale to the lenders, additionsD I say the tax is too high In any aspect.
 Now there are other items of expense that are not mentioned. No bank will loan money on cotton unless 1t is ware housed and receipt issued for tine same. This fixes an expense of not less than $1 per bale for storage, say, three. months or for 'the season." Also banks will not loan on cotton unless it is insured There will be the loss in weight to be borne by the farmer. All these items can be summed up, counting the $l fixed charge, as ranging from $4 to $5 per bale, and to be paid by the farmer; and in the matter of weight, at least three fourths of the loss. If it be said he is guaranteed the higher price, I ask who guarantees it-that is, with real money? ic fr11a hot t1ttf 1hor. pf farmers should enter the net spread verify in the sight of the bird, that those who are posing as his friends could play double game of profit They could go into the future markets and buy March, April, May, June July and Au- guest cotton, and being in control of spot cotton, could drive the price to 15 cents in one or more of those months, that is, with all forced cotton out of the way, and they would have the willing and sticking cooperation of the independent holders of 100000 or 2,00o,000 bales. They could, however, call the loan cot ton at F cents, never mind the price pros- pective on a rising market! Even at 12 cents they would by so operating clean up not less than $20 per bale, S15 from futures, S4 from sharing in the advance of spots and $1 for the loan; that is based on the present price of cotton. Any well informed man knows that the lenders would "hedge,'' and in hedging why would they not seek to ride to higher values?
 The country banks (this includes large 1 cotton centers outside of New Orleans and New YorlS) are loaning merchants $35 | to $40 per bale on cotton. Much of the present squeeze in money matters is due | to this very fact, for many banks are | loaded and warehouses are in many places so crowded that they have not sufficient storage room; in fact, some cotton in their keeping is not stored at all. but is lying out and exposed to weather.
 The merchants are hard ridden, but are carrying their burdens in most in- stances with patriotic grace. They will share in the benefits of a fairer price for the money crop of the farmers, and that price is surely coming soon after the holidays. It may be delayed, but the larger it is the more certain it is that the price will be higher. Once forced cotton is out of the way the fellow with the staple who don't have to sell will sit steady in the boat even on an ad- vancing market-the longer he holds the surer the higher price.
 I'll bet there is more lying about the amount of cotton needed and the stocks unsold on hand than in any other busi- ness on earth. Often cotton has been sold to mill, and is held in interior ware houses until needed because of the lack of storage room at the mills.
 In another article I shall take the liberty of again suggesting some feas- ible plans for a better system of handling, financing and marketing the greatest money crop in the world; greatest because 1t must leave the farm for conversions; it cannot be eaten or fed to stock, and vet this crop will, at present prices bring three-quarters of billion dollars. It should, with fair prices, counting the seed from 100000 bales, bring close on to $1 ,0O0. .00OO00
 I am pleased to note the presence in Birmingham of MT. A. l.. Hart of the Manchester (Eng.) Guardian This points the way to returning to the "befo' de war" custom of selling by the plant CTS direct to the spinners of England.
 PERCY CLARK
 Birmingham, November 26, 1911.