The Birmingham age-herald., 1911-11-29
BENEFITS OF HIGH PRICE FOR COTTON Recent Action Step in Right
 Direction METHOD IN BRAZIL How the Government Has Aided Golf fee Growers in Getting Suit
 able Prices for Their
 Product
By c. E. STEWART

1 The proposition proinoeeo ps oNeal and other distinguished men of
 inc south and backed by number or New l yorl, bankers headed by Col. Robert NJ. 1 rbonpson. 10 loan the farmers of the
 so,tb s95 on each bale of cotton ware
 housed at some designated place, Is cer-
 tainly a step in the right direction The l cost of raising cotton has advanced wlth | everything else. Increased prices for fer tilizers and increased labor costs, to say nothing of bagging and ties, bring the actual cost of raising cotton up to point that the present market price TOT that commodity is below cost of produc- ton.
 It is true that cotton is limited as to territory in which it can be successfully raised, but the fact remains that this territory is capable of producing Tar more cotton than the world requires, and will be for long time to come in spite of the fact that each year brings greater demand from an ever increasing population. The souths ability to pro- duce cotton has never been really test cd. If it came right down to it, three or four states out of the 15 that raise cotton could with the greatest ease produce a crop that would equal the crop of this season, hence 1t will be years, perhaps a century, before cotton will increase in value on account of the limited ability to produce it. Some other method of hold ing up the price, therefore must be in troduced, or it will continue to be reg ulated entirely by the size of the crop. l.i tp keep the price down.
 Unfortunately, a large majority of the farmers who raise cotton are compelled to market their crop as soon as possible, and the magnitude of the crop and the large number numerically of people en- gagged in the industry makes 1t next to impossible to get anything like unanimity of action with reference to holding the crop back. The governments method of keeping tab on the crop as it is ginned, designated without doubt for the benefit of the putlic in general. is really be- traying the farmer into the hands of his enemies and giving them in advance full information in order that they may pre- pare themselves to get their cotton at the very lowest possible cost, which they pro- ceed to do.
 l cannot vouch for it, but I am told that there existed several years ago, in Brazil. just such condition with refer ence to the coffee crop as exists with us today with cotton. The farmers were producing large crops of coffee, and as a result the price was far below the cost of production, and it really became so bad that the government was compelled to assist a starving people. Out of this condition grew a system of warehousing ft1a .1t,- xx-ff ernment on which was loaned to the farmer 9 certain percentage of the mar ket value of the coffee put in storage. and only enough coffee was sold to sup ply the demand at a good price. The proposition, so my informant states, grew too big thing for the government of Brazil, and now J. P. Morgan is oaning the government the money which they in turn loan to the coffee farmers, and this, he says, is the cause for the present high price Of coffee, which as matter of fact is now worth all the way from 9 to 8 cents per pound.
 Most of our cotton crop is sold abroad, and it brings new money into, this coun- try, ana any system that will tend to hold up the price and give the producer a part of the benefit of that price will bring millions of money to this country and at the same time help out deserv- ing people.
 Governor ONeal and his associates are to be commended for this step, and they should De accorded the most enthusiastic support of every commercial body in the southern states. One great trouble with our farmers and also some Of our com mercial friends is that they are too sus- picious at times and not suspicious enough at others. If they were discriminating enough to be able to judge their real friends it would go a long way toward solving this problem, but this is simply human nature, and will work out right in the end.
 Let us hope that Governor ONears plan will be worked out thoroughly as to detail, that the farmers avail themselves of this great opportunity, out of which may grow their salvation.