The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1912-01-02
OF COTTON
MARKET FOR YEAR
Interesting Statement Issued
by a Well Known Authority
On the Subject
(By THEODORE H.. PRICE,

. ! HAS ildI hcO the emu OIL a COTTON
famine, and an era Of comparatively
~hign prices, n the year 1912
seems likely to find the world sup
piled with sufficient cotton to meet
its requirements for the balance Of
the so-called cotton year, which ends
August 80, 1912.
It is probable, in fact. that his |
years crop is large enough to supply
the demand up to October 81, 1912,
or two months after the time at
able. This is all hat can be ex-
pected from the widely advertised
surplus Of his years cotton pro-
duCtiOn, and when the fact is stated
in this way there would seen. to be
but little Justification for any .x-
rcctation Of lower prices.
In no other important industry
that | know Of is a surplus the euuiva-
lent Of two months consumption after
t"n years Of famine regarded as a
sufficient Justification for panic prices
and sales below the cost Of pyoGuc-
ton.
Tn. Southern p~:>dueers Of cotton
seem t. have CONS 70 this conclusion
la rre!E ~ & rssu:t ii the convention
o. the H2HornGrs ii tn1 Cotton states
held ii Now orleans III October. and
ti.& tlni.s Of -. -ltire S....fnern
community, hoth Business luen and
farmers, arc dee IL t::a Fort Worth
"ne>orG" and its .tts,t. NJ. car
vnee 'nsle>, - their Jterprsse in
calm. and G~T,:lni4inc this rr,,en-
tion IT tae ot.a>rtG1te rtG1l.,-t rs
ktCcS@lt.t:on d the fl@ts of supply
mo cn1Sl>IIr .. nu GGoot pItF.ftteti
i IanI"hN decline il the fnarhet. and
nan"+" treatment Z, tae sts-@tson
that i@3-=f4n:>1 the Soutncin cotton
probe = To obtain at least cost tur
that portion Of this years cotton crop
which ~ ;tt.>a..y been sold.
IT h3s al the saroc tame induced
,rtivipatory buying on the part o1
consumers, Vai.a III sonle cases
t.JNtTS tneir prospective reuulre:ltnt
III thee and fYLr Years ahead. The
weight of whatever surplus is at
tribGlabJe to this years American
: cotton production has thus been dis
tributei over a long period Of time,
) ard the prospect noM seems to ie
THAT with q reasonable rcdlllt.oa IN
: acreage next year. and an average
/ production, cotton will again rule
, somewhere between Il and II cent
! a pound.
: h supply Of iron. copper and
coal in America is pIAet.t1I:y mex
l3austible. but the producers II these
commodities are enabled to reap q
f fair profit upon the enterprise anG
capital employed In their production
! through q legitimate control Of the
supply.
: The year 1912 promises to mark g
new cra: il, the cotton trade, distin-
Guishcd chiefly by the application OF
4 the sarle sane principles to cotto1
production. 1t used to be assumed
that the South could produce moth
ing but cotton; tat it had to produce
cotton to live, and tina it had L
~A11 -; 49, @ol n 4ax-~
= price was obtainable, whether thi:
: price showed q profit or a loss, anC
that then it was compelled to go OF
and produce another crop TO be solo
at & possible loss, and SO ad infinitum
bat times have changed.
The great economic. marvel of tn,
present century is the expansion il
the worlds demand for cotton goods
The demand is now 50 great that
surplus of a million bales is IA
smaller in its relation to the total re
quirements thar was the case tiitee1
years ago. Moreover, the South i
richer and better educated in tn,
" principles OF economic law. It ha
learned how to do other things than
grow cotton. and its agriculture
10 versatility enables it from year L
year so to change the objective o
its enterprise that when cotton cease
to be profitable another crop will b
grown.
: For these reasons, and because it i
easily demonstrate that it costs a
least 9 cents 4 pound to produce mid
ding cotton, and just as much t
1e produce low-grade cotton that onl
sells for s cents q pound. when mid
ding cotton sells for nine cents
,r pound, 1 think it entirely ~reasonabl
Is to assume the probability OF highe
3. prices for the year 1912.
IT I congratulate the South upon IN
Or aG:ance that it has made in the al
k pllcation Of economic knowledge to u
k economic problem. The whole Worl
20 will be better off for it. A plethor
Of cotton at extremely low prices i
Y. one year affords an Injurious stimuli
to consumption. A deficiency and eS
tremely high prices in another yea
4. result in an equally injurious stimuli
to production.
The most thoughtful students c
ecoDom;ca are CraHualIV coming to tn