The Washington times., 1914-09-17
ATLANTA'SCOTTONPLAN

The Atlanta chamber of commerce
has devised 4 plan which it believe
will relieve the whole cotton situa
tion Immediately. There are to bI
considered at least two factors
First, The market in Europe for thi!
years crop is largely destroyed; con
sequently, prices are down. Second
the surplus carried over from thi:
year will. even in the most favor
able circumstances, be so large a;
probably to insure continued de-
preston of prices, affecting the 1911;
crop. 1t is not necessary to point
out that such a depression Of cot
ton values, continuing two years, anG
probably making itself felt a still
longer period. would be a grave mat.
ter for the South, and, indeed, fol
the whole nation.
To remedy this condition, the At.
lanta chamber proposes a scheme to
reduce next years crop by one-half
and to let the world know at once
that this plan is to be put in effect.
In letter it has sent to every bank
in the cotton States, the Atlanta
chamber states its plan thus:
AS soon as 1t becomes known that
next years crop will be cut in half
this years crop will sell for a far bet
ter price. and the whole situation will
be relieved.
This can be assured If the bankers
and merchants of the South will act as
one man, pledging themselves to give
crop only to those who will cut down
their cotton acreage one-half and in
crease food crops in proportion.
The Atlanta plan would work, if
it would work. AS matter of fact,
it will in considerable part work
whether it works at all or not. The
effect of very low prices for a crop
is always to influence toward a de-
creased planting of that article for
the next year. The effect of very
high prices is to encourage large
planting. That is why there are con-
slant alterations between large acre
ages and low acreages of certain
commodities like potatoes.
This years depression in cotton
will convince, and has convinced, very
many Southern planters of the de-
STABILITY of planting something else
next year. There will be more diver
s;fcation of crops in the South in
1915 than ever before. There will
he less cotton raised than in a good
many years.
All this would be true whether
the Atlanta chamber of commerce
had suggested it or not.
But this natural response to the
law of supply and demand is a very
different thing from organizing a
money-trust of Southern bankers,
and imposing the obligation, on
every borrower, that he will not raise
more than nalf as much cotton as
last year, and that he will double his
production If foodstuffs.
The South has never cared much
for the money power. Yet the At
larta chamber proposes the most
fragrant utilization Of the power of
consolidated and centrally dominated
capital that could well be conceived.
1t is, in effect, proposed t" bind the
liquid capital of the whole South in
an agreement that would be a gigan-
tic conspiracy in restraint of trade;
to dictate the industrial policy of
great section of the country from
the central office of the United
Bankers.
When Wall Street is even cuspect-
Cd Of that sort of thing, the South
rises in protest.
The first result of such an effort
rs the Atlanta chamber undertakes
would be 4 flood Of protests from
good customers of the banks. Some
men will very willingly cut their
cotton production one-half or more.
They would do it without being
with withdrawal of their
credit. Some others, by reason of
labor conditions, inadaptability of
their soil, lack of equipment, and
many other reasons, would find it n
great hardship to be required thus
to change their whole man.
rer of farming.
Again, suppose half the cotton pro-
duction could be GU off, and at the
same time The production of food
stuffs in the cotton States could be
doubled. What would be the effect?
There would be great danger of
the second stage being worse than
The first. The South has not the
hogs and cattle to consume vast
corn crop. as yet. Such an increase
r the national corn crop would cause
a drop in prices. which would sf- !