The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1914-09-02
THE (UYTON CRISIS

The South is facing Il crisis, and
vet, people generally do not seem to
realize it.
If some action is not taken by the
government, whereby Il fixed mini
mum value for cotton can be settled,
purely Us an extraordinary, and even
an unconstitutional measure, cotton
will go to five cents per pound. Five
cents for cotton that costs ten cents
to produce it, means ruin for the
South.
The committee in Washington,
that has had under consideration the
fixing of Il minimum price ut which
the National government will fur
nish money directly to the banks
with which to handle warehOuSed
cotton, has suggested eight cents per
pound minimum, and it seems prob
able that this will be adopted.
Such Il measure sounds like social
istic talk or pa%ternaliSm in its rank
est form, but undoubtedly it is .iusti-
fable in present circumstances.
The question is, can the govern
ment furnish money to hold the cot
ton crop on a basis of eight cents per
pound, without danger of serious
loss? 1t most aSSuredly can. AS
long as Il man can borrow on his cot
ton eight cents per pound he is not
going to sell at !! cents per pound.
American mills will consume fully
one-third of American cotton, and
if this has to be drawn out of ware
houses it will be at Il premium. Eng
lish mills are not going to shut
down, and IN all probability England
will want as much cotton as ever.
England will have American cotton
even if she sends dozens of ships at Il
time fully conveyed by armored
cruisers.
We predict that if the government
will adopt the extraordinary plan Of
furnishing money direct, to lend to
farmers on their warehouse receipts,
at eight cents per pound, cotton will
sell for more than ten cents per
pound within thirty days thereafter.
1t is suggested that loans be made for
not more than t%wO-thirds the eight
cents, reserving the one-third us mar
gin. The price is low enough with
out reserving anything. 1t is two
cents lower than the cost of produc-
ton, and it is four cents lower than
the average price of cotton for three
years, during which time there WAS
a bumper crop. Cotton is practically
non-perishable, and the government
is assuming no risk to lend its credit
even for "a year or more on Il com
modify, at Il rate that is two cents
per pound less than the cost of pro-
ductiOn. If it does not do this, the
farmers will be tieeced out of at least
four hundred million dollars which
will 60 into the pockets Of spCcu-
lators and foreign spinners.
Even ut eight cents per pound,
there will be mighty little cotton
planted in this country next year;
and Il short crop for n year would
let the government out with Il hand
some profit to the holder, even if
much of the warehOused cotton
should be sold along above eight
cents.
1t. would seem the part CT wisdom
then to hold cotton, hold it in the
seed, in which state it is said to con-
tinue to grow, until some definite
plan is worked out by the govern
ment and those specially advocating
the legislation. If Il man owes a
good part or all the value of his cot
ton ut eight cents, he should borrow
and pay up to the limit. Those who
have claims on the cotton should be
satisfied with this, for if some such
measure is not adopted cotton will
drop to five cents the pound and cen
not meet debts incurred on a basis Of
twelve cents cotton.
Warch0using and gradual market
ing is the only salvation for the
Southern cotton grower, and this is
impossible now except through di-
rect government aid.
The farmer, then, should not get
panicy, but should await the out
come of the governments friendly
plans, with confidence.
NNVSE I-(t(,ISST1nN