The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-09-23
(Address deliver by II. II. Belser at
Camden before the Kershaw Division
Cotton Congress.)
The Situation Confronting Us:

A"c Suu"tOn confronting Us:
Owing to great European war, for
the first time I'm nearly fifty years the
cotton farmer ilnds himself unable 20
convert his cotton into money, except
with the greatest difficulty. aad even
then at a ruinous price.
Of the fifteen million bales of cot
ton produced annually in the South.
five or six million are used In America
and the remaining nine million are
exported to European countries.
Owing TO the decentralization of the
country incident to the war, Europe
Is no longer able to take care of these
nine million bales except to very
limited extent. so that we are con-
fronted with the problem Of making
some disposition Of this surplus cot
ton. for which there is no demand.
IL IS possible that England may be
able to use as much as two million
bales. Spain. Portugal and Italy
and other small Mediterranean coun-
tries will use as much as a million,
Japan and other Asiatic countries
another million and with American
and Canadian consumption Of ap-
proximately six million bales, this will
make total consumption of ap-
proximately ten million bales.
Law Of supply and Demand.
The law OF supply and demand is
inexorable In Its workings, and the
only result OF an over-supply, Of any
commodity is to break down the mar
ket for the commodity. and the great
er the surplus. the greater the
decentralization OF the market. 1t be-
comes necessary. therefore. five
hope to keep up the price of cotton,
to carry over this surplus Of five or
six million bales Of cotton and make
room for II by reducing the crop pro-
duced In 1915. BY so doing we can
make the production in 1914 togeth-
er with the production in 1915 Just
about equal to the probable consump-
tion Of those two years. III this can
be done under the operation of the
law Of supply and demand. we should
receive fair price for both the crop
Of 1914 and that OF 1915.
We estimate that the consumption
from the 1914 crop will be approx
mately ten million bales. and for the
period ordinarily supplied by the
1915 crop approximately twelve and
one aalf million bales. making a to-
,s' 4 twenty-five and one-half mil
Hon bales for the two year period. BY
citt ne In half the cotton acreage
planted In 1914 we should produce i'm
1915 crop of approximately seven
and one-half million bales. which
with the surplus brought over from
1914 would give US the supply re-
CURED from the crops of the two
years.
The South Carolina Cotton Pledge
Agreement.
The pledge adopted by the South
Carolina Division of the Cotton Con-
gress at Columbia two weeks ago was
drawn to meet the conditions outlined
la the preceding paragraph. Every
provision Of the pledge was designed
to carry out some special part in this
plan.
The consideration clause is vital TO
valid contract: the provision that
no cotton should be sold prior to Oc-
tober ist. 1914. was designed to keep
re market from being demoralized
before the money market could ad-
just itself to the changed conditions
incident 20 the European war And
that the emergency currency and 9TH
er relief Treasures being provided by
the national government might have
time To AFFORD the intended relief. 1t
was also hoped that the regional re-
serve bank system might he put into
operation between October 1st and
18th. and that this would prove very
beneficial. The reasons for the fifty
per cent acreage reduction clause
have already been set out above. This
Is by far the most vital provision of
tho pledge agreement. and Is the one
from which more real results can he
expected than from all the others put
tG.c .s"r. and the one which In my
Judgment should he emphasized and
enforced above all others.
The third provision was designed to
carry over the surplus crop. estimated
To be approximately one-third OF the
1914. crop for "a year. In order that 1t
might become practically a part of the
supply available from the 1915 crop.