Bryan daily eagle and pilot. [volume] (Bryan, Tex.) 1909-1918, 1914-09-15


Please explain why cotton sold In
Texas towns for four and five cents q
pound IN the nineties, with cotton ex-
changes and bucket shops In full
blast; and Democrats saying "oyer-
production" and Popullst under
consumption" We have seen cotton
sell for higher prices since Governor
Campbell's administration without
these means of getting high prices"
INQUIRER.
In 1895 the United States produced
nearly ten million bales of cotton, the
largest production up to that time in
the history OF the country. The next
year the production was a little rise
OF seven million bales, and the year
following 1t ran close TO nine million
bales. The prices those years played
between seven and eight cents. There
were Just enough splndles in the
world ut that time to comfortably take
care OF the cotton grown. In 1898
this country produced 11,i99,99l bales
of cotton. and the year following II
produced an even larger crop-more
cotton than the mills at that time
could conveniently consume. Here
was a palpable case Of supply exceed
ing demand, and the price for middllng
on the New York exchange was as
low as 5.94. The next year the crop
dropped below ten million bales, and
the price went up to 9.25. Seeing
that more cotton was destined TO come
into sight, the mills again began to
enlarge and new mills were establish.
ed. thus creating fresh demand. But
still there was no marked rise in the
price until the Sully movement, fol-
lowed by like movements, and a new
price level was established for cotton.
The master spinners Of the old world
started a movement to eliminate the
middleman-to have porducer sell d.
rect to spinner-and TO the extent Of
their ability the Southern people,
through their lawmaking bodies, have
played into the hands of the spinners,
the only users OF cotton. II there be
no Spectator, who is going to take
the crop when the spinner is not in
the market And what win bring the
spinner into the market so speedily
as the knowledge that men are buy
ing cotton as aid Sully, Scales and
! others-in the belief that II is good
purchase? And how can all the
world assist in the buying movement
unless there be exchanges? The one
competitor OF the spinner is the specu
lator or course. there is no repeal
ing the law OF supply and demand
But doesn't It stand TO reason that
the spinner viii take his time about
buying II he has no competitor in the
market, and won't that very fact SC
depress the price as to hurt the pro
+ Queer With the exchanges closed
as they are today. the price IS one
= thing IN one community, and another
{ thing In another community. Whei
the exchanges open. what better pur
chase than cotton? Innumerable pur
J. chases for future delivery will neces
s sarily run up the price, and when tn
price begins to go up the American
+ spinner will start to buying, and herr
n you will have two agencies operating
i to put up the price. Should the South
" ern people trust their all to OUTSIDE
buyers? Shouldn't they 90 on the eS
o changes and support the moyemen
d to put cotton where II will easily sci
9 here in Waco above 10 cents pound
Under the pressure of enormous crop
It enormous at that time by reasol
of the fact that the spinning worl
e was not prepared for such an outpu
d cotton did sell here in Texas TO
o four and five cents a pound. But col
l. ton that was selling in New York 4
d 1898 for 5.94 was selling in 1904 TO
Ills. And here is the production dul
ing those and the intervening years
:. 1893, 11,199,994 bales-the larges
ever produced up to that time; 1889!
r, 11,274,S40 bales; 1900, 9,436,416 bales
1901, 10,3S3,422 bales; 1902, 10,6S0,6S
70 bales; 1903, 1O,727,559 bales; 1904, 10
" 011,374 bales. Did the spinners II
e. crease the price from 5.94 to 11.75 b
ID competition among themselves durin
is a period in which production was ia
e. in excess of the previous seven yeai
n. i'm round numbers 100000 Q
OF against 57,O0O,0000 bales? There "
err had an increased supply of almost q
e. 100000 bales in one seven-year peric
I'd as compared to the previous seve
lr year period, and yet during this tin
this time that gave us practically
II. 20, 900, 00O0-bale increase - the prit
ed went from 5.94 to 11.75 on the Ne
of York exchange What brought
o. about? Why, Sully and Scales al
. Brown and the others created the b
nd lief that cotton was a good purchas