The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-09-27
LIMIT COTTON TO
ACTUAL DEMAND
BY WITHDRAWING PORTION OFF
CROP. SITUATION CAN BE
SAVED.
KEEPS SU RPLUS OFF
SAVANNAH MAN DECLARES ACRE
AGE OF NEXT CROP MUST
BE REDUCED TO HOLD
PRCEs NORMAL.

A stronger tone has been noted
in the cotton market this week is the
report made by w. r. williams, OF
Savannah, Ga. This has been due
entirely to the disposition to hold cot
ton so generally shown by the farm
ers Good middling has worked up
to "a cents In the Savannah market,
and the demand has exceeded the Of
ferings While receipts have been
remarkably light. still only a very
limited part was put on the market.
Sufficient assistance has now been
provided for to enable the rational
marketing of the crop. The impor-
tant point Is to keep the offerings
within the limits OF the demand 1t
looks like the crop may approximate
Ia. 600. 900 bales, which would not have
been excessive but for the war. BY
reason of the war. the worlds con-
sumption promises to be reduced by
at least 100000 bales. or about one
fourth OF the crop. Attempts To
market the entire crop would entail
a decline to a much lower level The
anticipation of such a contingency has
served to rest ain the disaffected eIe-
ment among buyers to go very slow
at first.
Now the price always depends on
the relation between the supply and
the demand. Che war has precipita
ted violent decline by suddenly re-
ducirg the demand. while improving
! crop prospects have increased the
presumed supply. If the world this
year wants only about 100000
bales. then crop of that size should
have been taken without any material
depression being caused by the war. II
now follows that IL we will resoiutely
keep the crop-that is, the CONNER
cial crop-down to the supposed re-
| quirements, We should undergo NO
disastrous fall in prices
! To accomplish this, 1t is only nec-
essary to keep the surplus entirely
OFF the market. 1t will not do to
merely hold the extra 100000 bales
at home or in warehouses pending a
return of the market TO acceptable
prices. knowledge that such an ad-
! dition to the supply was standing
awaiting the call of the buyer. would
act as a dead weight. 1t is essential
that the cotton be definitely remov-
ed as a factor in the situation. so tina,
the total available crop be cut down
to not over 100000 bales.
This meaEs that about 80 per cent
OF the CROPS per cent at any rate
must be absolutely eliminated. Enough
cash Ia available to hold this amount
| For instance, supposing the Georgia
crop to be 100000 bales. then al
least 100000 bales OF this must be en-
tirely removed from the possibility OF
market this year. This should be
definitely held off by formal compact
! for one year. The owners of the cot
ton could be advanced $40 bale
which would involve a total for Geor'
gia Of say $4,000 900. The only risk
would be the possibility of the price
being lower than s cents a year later
Ample security agains, this risk
would be found in a decisive reduction
of the next acreage. The other States
would have to care for similar pro-
portion of their crop.
There Is no lack of means to carry
| out this idea; what IL needed is or
Eanization. together with mutual CO.
operation on the part of the several
cotton producing States While this
80 per cent OF the crop could be Sc
gregated any time within the next
| few months. the sooner the plan
could begin to be operated the soon
or the effects would be felt on the de-
| pressed market.