The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1911-10-28
PLAN TO BOOST COTTON.
Governors of Southern States to
Hold Conference in New Orleans
How the Sacrifice Of the Cot
ton Crop Can be Prevented.

I -HoW the Sacrifice OF the Cot
ton Crop Can be Prevented.
| The governors of the eleven south
ern states which produce the cotton
crop of the world will meet in New
| Orleans next Monday, pursuant to a
| call of Gov. O. B. Colquitt Of Texas,
to discuss plans to get a better price
Tor cotton. The meeting was called
for Dallas, but was changed to New
| Orleans at the suggestion of sew
eral governors.
In addition to the eleven COVER
nors there will be in attendance the
| state commissioners Of agriculture,
| representatives of the leading finan-
cial institutions of the south, heads
In farmers organizations and editors
iSf leading newspapers.
The meeting promises to be one
Of the most important ever held in
| the south and may have far-reach-
| ing effect on the method of market
ing and handling cotton. Plans will
be suggested for eliminating the mid
| die man, the cotton broker, and puts
| ing the cotton direct from the farm
to the factory. AS in the case of
many other products, the greatest
proportion of the profit from the
| lotion crop goes to the brokers in
stead of to the producers.
Among other plans to be consid-
cred will be one similar to that en-
ployed by Brazil in keeping up the
price of coffee. 1t will be proposed
that the cotton-p reducing states, act
| ing as individuals or as a whole, is
sue bonds of between half a billion
and a billion dollars value, for the
| purpose of purchasing the entire cot
| ton crop and holding it until the spin
| ners of the world are forced to pay
| a price considered fair and just.
Brazil adopted this plan in 1906.
Coffee was then selling in Brazil at
about DC. a pound This was below
the cost Of production and the coun-
try was rapidly becoming impoyer-
ished. Bonds to the amount of $75,-
1000, 600 were issued by the State of
Sac Paulo. These bonds bore 5 per
cent interest and found ready sale
| in London and other countries. This
| money was used in purchasing the
coffee from the planters and stor-
| ing it in great warehouses. The plan
vas considered SO good that the gen
sral government issued still a larger
sum in bonds and the entire coffee
srop was bought. The result has been
III stas he was forced
from &c. to 13c. and Brazil ceased to
| be an. impoverished country and
again entered an era of great pros
perity. Those who are promoting the
| conference cannot see why the south
can not adopt this plan successfully.
Another plan which will be pro-
| posed will be the establishment Of
cotton factories in all the southern
states. Investment of private capi-
5al will be encouraged by the remis-
sion of taxes for a period of years
and law will be proposed whereby
these factories may be owned and
operated by the county or the city
governments as a county Or a munic-
ipal enterprise. Bringing the factory
T 20 the field will save millions in
freight charges.
Still another plan proposed is to
svy a tax Of 81 a bale on all cotton
5inned to pay the interest on such 8
Bond issue as would be necessary to
,gandle the surplus cotton crop. On
this years yield such a tax would
probably produce s13,000,000, which
would pay the interest on bond IS
sue Of $3.50, 100000 With these bonds
secured by the hypothecation Of the
cotton, the bonus would be consid-
cred an AL investment in any sec
ton of the country.
It is argued by many that the cot
ton spinner would rather see cotton
selling at a stable price year after
year than an abnormally low price
one year and an abnormally high
price the next year.
One pound of cotton produces, on
the average, five yards of cloth. An
advance of 5 cents a pound in cot
ton, therefore, means an advance OF
only ! cent yard in the cost Of
FTSoth The world requires all the
cotton goods that can be made from
an American crop of 14,000,000
bales. In 10 years it will require the
equivalent of 20,oo0,o0o bales and
the cent yard, more Or less, is a
difference wilica is not appreciated
by the thousand of millions OF con-
sumews of cotton goods.
On the other nana, s cents a pound
on. q crop Of 74,Gna, 600 bales means
IT means the difference between ina
poFerEshmenl and prosperity for the
people Of q great section OF the Unit
Cd States, and it is to this end That
the conference to be held at New