New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1914-08-15
HOW A COTTON CRISIS MAY
BE AVERTED.

Hon. Jos. +. Ransdell. united
States Senator from Louisiana y
w. b. THOMPSON, New Orleans.
New Orleans, Aug. >, 1911.
"The Cotton Crop will soon be
moving in volume. 1t is impcra-
tive that these supplies be held
eff the market until some plan
can be put into operation Tor tax
ing care Of the proposition winch
under normal conditions would
~ exported for foreign consUmp-
ton. II the crop Is moved to
market even in normal volume,
the effect will be disastrous be
cause, ON account of conditions
abroad the demand will be only
about one-half of the normal. In
such case the splnnelS who can
operate will not buy except on
the bargain basis which" is Ger
tain to obtain If cotton is freely
offered for sale. The sure result
of such condition Wor'~ be an
abnormal and extraordinary
profit to those spinners who
could manufacture goods and a
cruel and unnecessary impover-
ishmcnt of the farmer. The rem
cdy must be applied, not after
tho n ,,lr of has h.
gun, but before. It must be APP
piled now.
It therefore follows that the
initial step in any plan Of relief
mrst be an insistent and com
polling appeal directed to the
cotton producers and merchants
urging them and warning them
not to offer cotton for sale for the
time being, but to hold back at
all costs until opportunity has
been given to perfect measures
for permanent relief.
| take it that the Federal Gov
eminent is not only willing but
anxious to employ its resources
il support of any legitimate and
feasible plan for preventing the
sectional and national calamity
which would follow the sale Of
the cotton crop under panic con,
ditiOns. Positively the only way
to avert this catastrophe is to
summarily shrink the supply Of
cotton in the same proportion
that demand has been sVmmarily
curtaied. This adjustment can
not be accomplished except by
segregating the artificially ere
ated surplus and putting the
world on notice ahat such proper.
ton of the crop is not for sale
until demand increases sufficient !
ly to absorb it for the needs Of
actual consumption But this
segregation of supplies cannot be
ace omplished unless there shah
be a corresponding increase in
the supply of funds to carry the
surplus through the abnormal
period. Under present condi-
tons the banking resources Of |
the South are inadequate for this
purpose. The resources OF the
Government are entirely ade
quate.
1t therefore follows that the
second step in the plan must be
to secure the promise Of the gov
ernmental authority that it will |
make it possible for the financla;
Institutions Of the South to pro
vide themselves with whatever |
money may be required to hold |
the surplus Of the crop III susper
sion. which sum will be under
three hundred million dollars. 1t |
will not be necessary for the GOV
eminent to give anybody any
thing. Neither the government
nor the banks need lose one dol |
lar in the transactions which will |
save the cotton producer Of the
South. All that is necessary IS |
for the volume Of money avail
able TO be sufficient 20, take care |
of all the good cotton business |
offered upon proper margin.
There need be no change what
ever in the principles upon which
the cotton business has been con
Quoted The only difference will |
be that the amount of money in
vested in cotton loans will be
larger in order that the increased
requirements Of the producer may
he accommodated The fact that |
baled cotton is not perishabic
and does not deteriorate with