The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1911-11-02
rELLS Of COOL" PLAN
PRICE SUGGESTS A WAY TO FL
NANCE COTTON CROP.
Advocates a Method After the Fash
ion of the Brazilian Coffee Valori-

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zation Scheme.
Mr.. Theodore H. Price, head o1
the Price-Campbell Cotton Picker
Corporation and one Of the foremost
figures in the cotton world Of today
suggests in letter to Gov. Colquitt
Of Texas, a plan for financing the
cotton crop Of the South after the
fashion of Brazilian Coffee valoriza.
tion, which has worked well in Bra.
zil, and which has saved the coffee
planters of that country from utter
bankruptcy. There is no reason why
the plan would not work equally as
well here, and save our farmers mil
lions of dollars, each year. Here Is
the plan in brief as suggested by
Mr.. Price:
The attention of the entire ecco.
nomic world has recently been d.
rected toward the success of the So
called plan of coffee valorization
adopted by the State CT San Paulo,
and later by the Brazilian govern
ment in 1906. Coffee was then sell.
ing in Brazil at about cents a
pound. That was below cost of pro-
duction, and the country was rapidly
becoming impoverished, in brief,
what happened was that the State of
San Paulo authorized the issue of
SIS, 100000 Of 5 per cent bonds for
the purchase of coffee then for sale
at the ruinous prices then prevail
ing.
These bonds were an obligation
of the State, secured by the hypo-
thecation Of the coffee purchased.
They were readily taken in London,
and with the money thus realized
and suprplus supply of coffee then of
fering was purchased, and accummu-
lated at the port Of Santos, being
! put in the hands Of three commits
sioners to sell at an equitable price
The policy was preserved in and
the result is that although the sup
ply of coffee has not diminished, but
rather increased, the price has ad-
vanced IS cents a pound, and Brazil
is again prosperous, while the con-
sumer of coffee is not conscious OF
the infinitestimal increase in the
cost OF his morning beverages.
I have not been able to See why
the Southern States, either collect
lively or separately cannot pursue the
same course. Under the good old
democratic doctrine Of Estates
Rights" they are soverigns, and un-
less it be unconstitutional, they are
at liberty to buy anything produced
in their own business Under the Fed
eral constitution they are not amend.
able to the Sherman act, nor would
such procedure be in restraint Of in.
terstate commence.
If the policy were adopted it would
Insure, not only to the economic adj
vantage of every citizen of each par.
ticular State, but it would also pay
a sufficient profit to largelh reduce
the burden of State taxation.
I believe that such an issue Of
bonds could be instantly placed, and
constitutional barrier to such action
guarantee the negotiation Of them
under proper conditions. If there Is g
constitutional barrier to such action
| then that barrier should be speedily
removed by amendment. In the South
constitutions have been not infre'
quently amended in the interest and
protection OF small minority.
The proposed course in one thai
would benefit every man, woman
and child in the cotton States, an6
less directly the whole American pop
ulation.
II the suggestion procedure be
thought too radical, then I take the
State of a tax of 81 per bale upon al
tentative, the imposition by each
State of tax of 81 per bale upon al
the cotton produced within it's bord
ers. This tax to be levied to be used
to pay the interest on loans negotf
ated for the purpose of buying uI
and controlling the surplus Of cotton
during the autumn and holding II
until it can be cold at an equitable
price.
Such a tax, If imposed upon this
years cotton crop would probably
yield a revenue of 100000. This
sum would pay 5 per cent. interest
on a bond issue Of S26O,OO0,O00
and I believe that IN obligation 81
created and secured by the hypo
thecation of the cotton for the pur
chase of which it was expended
could be readily negotiated. In fact
I think I could negotiate such {
loan.
If I am rightly informed, I un
derstand that the State of Texas anC
one or two other Southern State!
levy a tax upon bank deposits, the
proceeds of which taxes are used tt
guarantee the bank 9epositors. The
principle is not dissimilar. Severa
of the Southern States have for the
benefit of their citizens. built ant
operated railroads, an nearly all o.
them are today engaged in variou:
81. ,oS
ed in the interests of the community