The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1911-11-02
TO BOOST COTTON PRICES
Wade Stackhouse Suggests Plan of
Warehousing One-Fourth of the
Crop.

The greatest question before the
business men of the cotton grow
ing States, to-day is: Can the
balance of this crop be sold at a
better price?" That the present
price is near or below the price of
production no one can doubt. Eight
cent cotton on the farm to-day is
not so good a price as scent cotton
In 1896. The cost OF mules, labor
and supplies is almost double the
price in 1896. l think this crop
can be sold at better price, and |
suggest this plan: Get each farm
er to store in a good warehouse
one-fourth OF his crop.
Let us suppose this crop will
make 100000 bales; if one-fourth
OF it should be 100000 bales.
leaving only 1O,500,00O bales avail
able for the spinners. There can
be little doubt that if the cotton
spinners knew that the crop avail
able was only 10,5OO,OOO bales that
1t would bring almost as much mon
ey as the whole crop. AS to re-
tiring the S,500,000 bales, l sug-
gest that each State form a cotton
holding company with paid officers
or known business ability to man
age the business. Let strong
bank be selected as trustee and
have all warehouse receipts held in
trust for the cotton company. Get
each farmer who stored his cotton
to sign a legal contract between
himself and the holding company,
providing that if he sold his stored
cotton for less than IL cents that he
would forfeit the difference be-
tween the selling price and ID
cents. You will note that | sug-
gest 2 cents as the minimum price,
ana that the cotton pledge be stor-
ed in trust till August Is, 1912.
Each farmer would be free to sell
three-fourths of his crop. If he
knew the amount to sell was a
small crop he would approach his
price very close to the 12-cent
minimum. When the 1O,5OO,OOO
bales was sold at q good price
part of the surplus could be sold.
Very likely the price would reach
IL cents by February or March,
1912, and then the parties could
could sell part or all the surplus
crop.
This plan would mean that South
Carolina would have to put in store
100000 bales this year until Au-
gust 15 or until the price reached
IL cents. We have only got ware
house room for about 100000 bales
in this State.
If anything can be done it should
be done quickly.
My plan provides that the farm
erS, themselves, put one-fourth of
their crop in store for the minimum
price. If wealthy men of the North
should store the cotton it would
defeat the purpose. When each
farmer realized that one-fourth of
his crop might be carried into 1912,
and that the surplus added to an
other big crop would put 1912 crop
down to cents per pound he would
have a powerful Incentive to cut
his acreage and fertilizers. No
plan will help sell the balance of
this crop that does not pro-
vide a small acreage and less fer
The Farmers Union made almost
a fatal mistake when they claimed
this a small crop and put minimum
price at Is cents. The cotton world
can't be bluffed by false statements,
as to size Of a crop and a threat to
hold.
1t is up to the South to pro-
vide warehouse room to carry full
ly one-fourth Of the largest crops
likely to be made. These ware
houses should be located at railroad
centres and should have large ca
pacity. Perhaps 10000 bales is the
minimum warehouse will ever pay.
1t would be better for one ware
house company to own and manage
the few warehouses needed for
each State. This would give capi-
tai stock of sufficient size behind