Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1911-12-30
(By Theodore H. PRICE,

future. The year 1911 has marked the
end of a cotton famine, and an era
of comparatively high prices, and
the year 1912 seems likely to find the
world supplied with sufficient cotton
to meet its requirements for the bal
ance of the so-called cotton year,
which ends August 80, 1912.
1t is probable, in fact, that this
years crop is large enough to supply
the demand up to October 81, 1912, or
two months after the time at which
next years crop shall be available.
This is all that can be expected from
the widely advertised surplus of this
years cotton production, and when the
fact is stated in this way there would
seem to be but little justification for
any expectation of lower prices.
In no other important industry that
know of is a surplus the equivalent
of two months consumption after two
years of famine regarded as a suffi-
cient justification for panic prices az
sales below the cost of production.
The Southern producers of cotton
seem to have come to this conclusion
largely as a result of the convention
of the governors of the cotton states,
hold l., Nyouy OrIooro -, OotoLa, ord
the thanks Of the entire Southern
community, both business men and
farmers, are due to the Fort Worth
Record" and its editor, MIR. Clarenc
Ousley, for their enterprise in calling
and organizing this convention at the
opportune time It's presentation of
the facts of supply and consumption
no doubt prevented panicky decline
III the market and resulted in delib-
crate and forehanded treatment of
the situation that has enabled the
Southern cotton producer to obtain at
least cost for that portion of this
years cotton crop which has already
been sold.
1t has at the same time induced an
ticipatory buying on the part of con-
sumers, which, in some cases, covers
their prospective requirements for
three and four years ahead. The
weight of whatever surplus is attribu-
table to this years American cotton
production has thus been distributed
over a long period of time, and the
prospect now seems to be that with
a reasonable reduction in acreage next
year, and an average production, cot
ton will again rule somewhere be-
tween II and IL cents pound
7fe supply of iron, copper and coal
in America is practically inexhausti-
BILE, but the producers of these COM
modities are enabled to reap fair
profit upon the enterprise and capital
employed in their production through
a Il gitimate control of the supply
The wear 1912 promises to mark a
new era in the cotton trade, distin-
'~'.4ehpd chifv bv the application of
The same sane nriuciDles to cotton
p-a.lTcti' 1t nsed to be assumed
that the South could produce nothing
but cotton; that 1t had to produce cot
tom 70 i've. and that 1t had to sell It
when produced at whatever price was
ontainat lie. whether this nrice showed
a profit or loss, and that then 1t
was Comnelled to go on and produce
another crop to he sold at a possible
loss ard SO on ad inf1nitum but times
ha-, charoed.
The great economic marvel of the
nresent century is the expansion OF
the worlds demand for cotton goods.
The demand Is now so great that
surplus of illion bales is far small
er in its relation to the total require
ments than was the case fifteen years
ago Moreover, the South Is richer
and better educated in the principles
OF economic law. 1t has learned how
to do other things than grow cotton,
and it's agricultural versatility ena-
bles it from year to year to change the
objective of it's enterprise that when
cotton ceases to be profitable another
crop will be grown
For these reasons. and because 1t Is
easily demonstrable that it costs at
least cents a pound to produce mid
ding cotton, and just as much to pro-
duce low grade cotton that only sells
for cents pound when middling
cotton sells for cents a pound, !
think it entirely reasonable to assume
the probability of higher prices TO:
the year 1912
congratulate the South upon th'
advance that 1t has made In the appli-
cation of economic knowledge to al
economic problem. The whole worlt
will be better of for II. A plethora o
cotton at extremely low prices IN on
year affords an injurious stimulus t
/ consumption. A deficiency and eS
s tremoly high prices In another yea
g result In an equally injurious stimuli
o 10 production.
IL The most thoughtful students
Economics are gradually coming