The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-10-24


The outstanding lesson that the
existing financial crisis In the cotton
States teaches most forcibly IS the
folly Of farming on credit. But for
the load Of debt that overs urdens the
cotton crop there would be no acute
distress and the country would not be
clamoring for relief by the federal
and State governments. The farm
ers arc not alone to blame by any
means-they have accessories before
the fact I'm the banks, supply mer-
chants and fertilizer dealers who have
been not only willing but eager to
make advances with cotton as the
basis Of credit. Our whole system Of
business and finance has been found
cd on cotton and still more cotton.
The farmer who could give reasonable
assurance that he had the land and
the ability to produce cotton could
obtain credit and tho more cotton ne
could produce the bigger line of
credit he could obtain. Credit and
cotton have dominated the South and
the farmer who produced no cotton
could obtain little or no credit and
was perforce compelled to do bus,-
ness on cash basis. A big cotton
crop with tho price anywhere above
ten cents. meant living and some
profit to the farmers and big business
and profit for the banks. the mer-
chants and the fertilizer dealers; but
when the bottom drops out of the
cotton market there Is profit for no.
tody and the farmers have cotton
and debts but mighty little else. Cot
ton Is n good thing. 1t is the founda.
ton OF the prosperity Of the South,
but then II is possible to have too
much OF good thing. especially when
IL Is obtained by stretching the cred
IL OF the South to the breaking point.
The legislature Is playing with fire
when IL endorses the issue Of $4,000.
900 OF State bonds to be traded for
cotton at ten cents a pound. If cot
ton Is worth only six or six and a-ha,r
cents pound on the open market
the bonds that are traded for the cot
ton Will not be worth any more than
the cotton they represent and the
state stands to lose about six million
dollars. In addition 10 the inte, est. on
the transaction. The only thing that
the bond bill has to recommend IL IS
that IL must be submitted to a vote
or the people before II becomes a
law. We cannot believe the people
OF the state will endorse u wildcat
financial scheme OF this sort. There
would be some excuse for a bond
issue to raise money to be lent on
warehouse certificates. at a low rate
OF interest. the amount so loaned
not to exceed the present market val
ue OF cotton. say $50 bale; but the
socalied Bankhead scheme to issue
bonds to be exchanged for cotton at
the arbitrary price Of ten cents a
pound Is. to say the least, wild and
reckless financing. unless there is
coupled with II the absolute certainty
that the cotton crop throughout the
south will be curtailed ut least two
thirds for the next two years.
The war In Europe has knocked the
props from under the cotton marke
and paralyzcd business I'm the South
but 1t is laying the foundations for Il
great boom in building Of warships
the making Of rifles. cannon AMI
rapid fire guns. and the constrlc-
ton Of military aeroplanes. There ar,
said To be compensatiOns in all things
and the professional soldiers and sail
ors and those who profit by makina
ana selling arms and ammunitions are
coming I'm for their !nnlng. Mann
great fortunes will be made IN tho
United States within the next ten
years by army and navy contractors
The clamor for q greater navy AM
for the nation in arms. with every anI,
bodied man between the ages of %
and 30, n trained soldier ready To tak,
up arms at moments notice, H. iust
beginning. Already bills are hciug i'm.
troduccd I'm congress To- pruvid" for ;
great army that will ultimately con
Sist of perhaps a million and a-half (,
two million men on peace fcotiu.
With the majority of all ablc-hodio,
citizens Of military acc on the re-
servo list. The cry of lin time q
peace prepare for war" Is being raise,
iu al sections Oc the country aud whci
the nest session of congress convene
we shall sec determined effort uun :,