The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1911-11-01
TELLSOF GOOD PLAN
PRICE SUGGESTS A WAY TO FL
NANCE COTTON CROP.

PRICE SUGGESTS A WAY TO FL
NANCE COTTON CROP.
Advocates a Method After the Fash
ion of the Brazilian Coffee Valori-
zation Scheme.
Mr.. Theodore H. Price, head OF
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-
ton, which has worked well in Bra
I'll, 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
we'll 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 di-
rected toward the success OF the So
called plan of coffee valorization
adopted by the State of 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
s75,O0O,0O0 Of 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 il 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 13 cents pound, and Brazil
is again prosperous, while the con-
sumer of coffee is not conscious of
the infnitestimal 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 States
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
era1 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 ad-
vantage Of every citizen of each par.
ticular State, but it would also pay
sufficient profit to large'h 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 a
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 a small minority.
The proposed course in one that
would benefit every man, woman
and child in the cotton States, and
less directly the whole American pop
ulation
If 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 a tax of 81 per bale Upon all
the cotton produced within its bord-
ers. This tax to be levied to be used
to pay the interest on loans negotf-
lated for the purpose OF buying up
and controlling the surplus of cotton
during the autumn and holding it
until it can be cold at an equitable
price.
| Such tax, if imposed upon this
years cotton crop would probably
yield revenue of s13,OOO,0O0. This
sum would pay per cent. interest
on a bond issue of S260,000, 1000,
and I believe that an 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,
think I could negotiate such a
loan.
If I am rightly informed. l un-
derstand that the State of Texas and
one or two other Southern States
levy tax upon bank deposits, the
proceeds of which taxes are used to
guarantee the bank depositors. The
principle is not dissinilar. Several
of the Southern States have. for the
benefit of their citizens. built and
operated railroads, an nearly all OF
them are today engaged in various
sorts of business, which are conduct
ed in the interests Of the community.
Why, then should they hesitate at
engaging in business which would
protect nearly all their citizens
against the consequences Of economic
waste and ignorance
The cotton purchase under the