Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-08-11
THE CRISIS IN COTTON
Some Facts Of Importance Bearing on
the Situation.


Cotton growers Of the south and all
interests related to them in business
xyav are facing q crisis on account Oh
Europe's inability to take our surplus
cotton. OF from 5000 900 to s,O0O,0oo
bales, II the European war had prok
en- out in the spring, the acreage Wouiu
probably have been much reduced hu :.
tomatically. II the surplus crop OF
1914 can be taken care or OTHERWISE
for q year or so, cotton growers can
adjust themselves by diVersiiyins
crops so as to cut down the ylel1 ~.
probably one-half or two-thirds OF the
average production. But for the pres
emf they have a product on their hands
worth from $300,000,000 to $4OO,OOo,-
600, to carry which they are In dire
need of help.
Various expedients have been sug-
yested as q means Of meeting the SIT
uation, Whatever is done must De
done quick, but need not be done an
at once. The first problem is TO take
care of about 100000 bales OF cotton
nm IN September I, probably 5OO,OOO
bales during September and l,5oO,o0O
bales during October. The handling
of another l750 900. making 4,OOO,O0O
fn ali. by the end of November, would
60 far towards preventing prices from
siumping. The holding OF 4,oDO,Vo
bales of cotton at S5b bale would re-
Guire 1920, 100000 capital. on this, the
owners or trustees could probably pof-
row SiS0,00O,OOO.
A second suggestion is to develop the
consuming capacity of domestic mills,
which are now capable Of taking ABOUT
5000 900 bales. BY the special promo
tion of foreign markets under the sus'
pension Of the European supply or cot
ton goods, our mills might easily en-
large their cloth and yarn production
for Latin-American as well as African
and Asiatic wares. An expansion ot
80 per cent in consumption would en-
able the home mills with over 81
600 spindles to take 100000 bales;
. That would in itself be substantial
relief provided they could sell the
goods.
The domestic market could otherwise
develop q large demand under orol-
nary conditions of business. There are
no large stocks Of cotton goods In TINS
country, and the European r, war bois Is
likely to prevent imports. The wnole
demand for cotton textiles would then
fall or the home mills.
The war has intercepted jute I'm
ports, the staple material on Whlch
southern mills have depended regu-
larly for this class Of manufacture.
The large mills at Memphis are al
rea0N COnSlQeTlnB tic bSSSoSlNy ~
having to manufacture cotton bagging
out of cotton instead of jute for wrap
ping bales. At five yards a bale, To-
DOC, 900 bales of cotton would take
100000 yards Of cloth for this single
new item of demand alone.
The policy of southern growers, II
Europe fails to take its share of raw
cotton, would be Immediately TO ad
dress themselves to diYersifcation 20
4. NAtNN IN
crop down to less than 100000 bales
that Is, One-third below the absolutely
necessary requirements TO keep the
worlds spindles going. Europe has
about 100,O00,000 spindles out Of 49,
600 900 in the worlds spinning equip
ment. There could be no greater ca
lamity to industrial Europe from a
manufacturing standpoint than rad
ical reduction of the American cotton
, supply. That would bankrupt a major
portion of their cotton manufactur-
ing industry. Nor is this all. The loss
Of markets in various parts OF the
world for cotton goods is possibility
involved in the present crisis.
The practicability of financing a loan
of $3.50, 1000, 900 to carry cotton is prob
ably no more difficult than the valOri
zation Of Brazilian coffee in 1908. Va
rious proposals have been made
among which is that of issuing cotton
bonds of 500 in denomination and
higher, To which general SUBSCRIPTION
throughout the south might be in
yited. it is generally regarded thai
this would have to be done privately
as there would be much opposition tC
any governmental underwriting, unless
il was fathered by the states as such
Unless something effective is under
taken a revolution in the cotton grow
ing industry is inevitable before next
spring.-Wall Street Journal.