Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1912-10-22
HOLD YOUR COTTON, SAYS
Il. |. SCALES, IN LETTER
New York Authority Predicts
t5-Cent Cotton if Farmers
Market Crop Slowly


H. L. Scales. one OF New York's lead
ing option men, himself planter and an
authority on cotton subjects. in the fol-
lowing communication addressed to the
editor of The Journal. urges the farm
ers OF the southeast to hold their cot
ton and sell it slowly on advances only,
now that the misguided rush of Texas
cotton is over and the market is look
ing elsewhere. The mills are running on
a $4,000. O00-bale estimate, he says; yet
the crop will be less than $4,000, 900. Mr..
Scales hits the New York cotton ex-
change a stiff blow. urging southerners
to work through their congressman and
senator's to abolish IL or make it con-
form TO government standards.
TPrices will easily go to Is cents pro-
vided farmers act wisely in selling the
balance of this crop" writes Mr. Scales.
Here is his letter;
New York Oct. is, 1912.
Editor Journal: This cotton crop is
being badly overestimated. 1t is only
moderate size crop when considered
from modern standards.
II am sure that this crop is not over
Is. 900. as against crop last year
OF 1890, 600 bales. The consumption Of
cotton is now running on a basis of
$1,000. 900 bales. Spinners are doing the
largest and the most profitable business
they ever did. They are all running full
time and can't MI orders as fast as con-
sumers want the goods. The same con-
ditions prevail practically all over the
world Mills are sold months ahead and
have not yet bought cotton TO make the
goods sold.
They have been told that this crop
is much larger than IL really is and they
are holding of from buying except in a
small way. while farmers rush their
cotton on the market Why should they
not wait if farmers are satisfied to take
IL cents for their cotton2 Prices of cot
ton goods are higher today than they
were two years ago when mills were
paying 10 cents per pound for cotton.
The Texas crop is about the same size
they made last year-but the drought
caused il to open prematurely and all
at once and IL is now about IS per cent
ginned and sold. Farmers out there
thought because they had good crop
all the other states had good ones. too,
and they paid exorbitant prices for pick
ing and rushed every bale on the market
as fast as ginned.
'sThe rush from Texas is now over and
Texas buyers will soon be over in the
eastern belt trying to buy your cotton.
The rush Of cotton to market from
Texas was the cause OF the break in the
market.
THE question now is. win the farmers
in Georgia. Alabama, Mississippi, North
Carolina and South Carolina be satisfied
with present low prices and rush their
h. Lraf al
II hardly think. so. for two main rea-
sons-in the first place, your farmers
know that they undoubtedly have a
short crop, and again they know that
IL means bankruptcy, almost, to sell at
bresent low prices, and with the Texas
crop practically out of the way, they
can regulate prices by refusing to SELL
now at present low prices.
My advice TO every farmer is to hold
onto your cotton, IL possible, until
January, February and March, and later
months. The longer they hold it, up to
July. the more they will get for It. Mer-
chants, landowners, banks and every
body who can, should encourage and as
sist their neighboring farmers to hold
their cotton back and market very
slowly.
THE farmers have the lines and whip
in their own hands now, and they should
drive or stop to suit their own comfort
and pleasure.
Il am advised by reputable spot cotton
buyers that not over 60 per cent Of the
Texas crop is first class spinnable cotton
this year. The drouth caused this con-
dition.
zone other important thing want to
call to the attention OF the farmers.
merchants, bankers and every one else
in your section who Is in any way, di-
rectly or indirectly, interested in the
price Of cotton; and that is the situation
here in New York.
The New York cotton exchange has
such rules that allows low grades and
dogtail stuff to be delivered on contract
which nobody wants and is almost un-
salable. Everybody knows II is hard
stuff and everybody runs from it. This
condition allows 5000 to 10000 bales of