Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1911-12-01
Misesllansous Grading.
KERNEL OF COTTON SITUATION
John L. MeLaurin Replies to Many
Questions,

Since the recent cotton conference
in New Orleans, l am In receipt Of
many letters from various sections nj
the state requesting information.
It is a physical impossibility i'r
me to reply at length to all Of tn. -
letters. With your permission, I vii
use the columns Of your paper to
answer the various inquiries; bog
ging those to whom I have been urt-
able to reply to take this without con-
sidering me unappreciative or dis
courteous.
The questions may be embraced
viz:
First: What Is valorization?
Second: What is state validation
Third: What currency reform was
proposed at the conference?
Valorization comes from the recent
brazilian experiment in coffee. This
was not seriously discussed at the con-
ference, except incidentally TO Illus
trate what can be done II we are driv-
en- to the wall. Also as a striking ey-
ample Of the wonders to be accom-
plished by organized governmental ac-
ton. There can be no doubt were no
other course open that the cotton
states could succeed better than Rra-
I'll.
First-Recause We have the adVan-
tage of the higher political and COM
mercial standing Of the United States
as compared with Prazil.
Second-The resources Of the south
are more varied and the character of
the people far above that of Brazil.
Third-The cotton states could cas-
lily apportion among themselves In
ratio of cotton production the amount
of cotton to be cared for by each state
and possibly by legislative enactment
limit the acreage. These are, how
ever, harsh and un-American doc
trines. the mere SAVIOR Of which is un-
pleasant to our democratic palates,
but IL seriously undertaken would give
the cotton planter as complete a dom
nance in the world Of cotton as the
coffee planter now holds in the world
Of coffee.
I call the attention of those who
feel even an academic interest to a
press report on the second page OF
the Columbia State Of the 18th in
slant. The Coffee Roasters' national
convention asked the United States
to intervene and break up this COM
hine of coffee planters. That would
sound good to me II it were only cot
ton.
Brazil is a republic modelled after
the United States. San Paulo bears
about the same relation to coffee pro-
duction that Texas and South Caro-
Ina together do to cotton produc-
tion.
About six years ago the trust and
money power had the coffee planters
about where we will be this time next
year, unless something both radical
and practical is done. They were
bankrupt.
Coffee cost Z cents a pound to the
planter and he was being forced to
sell 1t at 4.
The legislature of San Paulo was
called together. and the state issued
bonds for $75,0O0O.OOO. They were
promptly placed, and San Paulo be-
gan to buy coffee and store 1t away.
The coffee bears laughed, and the
wise fnanciers said the state would
go broke, but she did not. She bought
coffee. and the market painfully
struggled to a little above cents,
then she began to sell all the Accent
coffee at over cents that she could
without breaking the market When
the market got weak more coffee was
bought and stored.
Coffee production increased, but In
spite of that, by the policy of never
selling except at a profit, the market
in the face of increased production
has advanced from to 13 cents.
The middleman was wiped out, le-
gi. innate buyers Of coffee bought di-
rect from the state warehouses. The
teeth of every coffee bear were drawn
and his claws clipped; you only hear
his growl and plaintive whine beg
ging governmental aid for return
to the days of the good stealing" In
which the cotton bears are now rev.
elling. Further than this, the profits
to the state are so great that, am IN
formed, all internal taxes in San Faulo
have been abolished.
Governor Colquitt of Texas is en-
titled to the thanks Of the southern
people for having called a conference
Of The cotton states in New Orleans
to consider the present industrial crl-
sis. 1t Is a patent fact that any plan
stopping short Of concerted state ac-
ton must fail.
The result Of the conference Is en-
bodied in three ideas, to-wit:
l. A recommendation that the sew
eral cotton states adopt the plan now
being followed with success in Lou
lsiana. / named this baby stale VAL
idation."
2. That the members Of congress
from the south see TO II that when the
currency commission makes its re-
port that cotton warehouse certificates
be made a basis for the issue Of cur
rency.
8. The tentative proposition of GER
tain New York bankers to advance
$50, 900, 900 for retirement Of 2.OOO,-
900 bales Of the crop Of 1911. Louis
lana by a constitutional amendment
created board of port commission
ers who were empowered under the
right of eminent domain to acquire
the terminal facilities and land neces-
sary for the construction of a great
central state warehouse in New Or
leans.
Cotton Is to be warehoused on
scale of greater magnitude than has
ever been attempted before.
The certificates are in effect re-
ceipts from Louisiana under the great
seal OF the state.
The state does not buy the cotton.
nor does she lend money on 1t, she
merely does for the farmer that which
ne cannot do for himself, to-wit:
leap storage, with his assets put In
such commercial form as to make
them command the lowest rate of in
terest.
The proposition Of currency re-
form, 1 regard as Of greater impor-