Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-09-21
@isesllaneuus 8eadins.
PEACE MEANS Fifteen CENTS
Eugene Scales Gives Views About the
Situation.

| Situation.
Eugene G. Scales, who operated with
James A. Patten in the 1909 cotton
Four" and who was reputed to have
made and lost fortune Of 10000, 900
is bull in the present cotton market
Mr.. Scales talked for publication. II
was the second time in his life thai
he ever did such thing, but as he
put it, he felt he was justified. The
first time was in 1909, when another
big cotton operator tried to promote q
plan for boarding cotton in the south
"E. g." as the Street" called Mr.
Scales, thought such a plan would be
ruinous and he told his Texas friends
not to be foolish.
This time it was the European wal
that caused "E. G." to talk. There
was such confusion in the minds OF
cotton growers and dealers as to ef-
feet Of the war on cotton, he said, that
an "old timer" might help to clarity
the situation.
And don't think I'm going to give
you an optimistic interview because OF
my market position, said the opera
tor. To-day am long less than 5000
bales Of cotton. l have studied the
cotton market intensely for 20 years
and am basing my calculations on the
governments figures"
| "E. G." said short sellers Of cotton
had better "go into Information" be-
fore it was too late. Every sign indi-
Gated a general prosperity, he insist
ed, and cotton would share in that
prosperity. The south was fortified
with plenty Of money, he said, and
would prevent any repetition Of last
years calamity in the cotton trade,
The bears were all wrong, he said,
and would soon find out that their ar
guments were not well founded.
| This is time for optimists, the cot
ton speculator said, and the govern
ment's figures, showing 16 per cent
reduction in acreage, should convince
any one Of that. While admitting that
q sudden peace would upset the mar
ket temporarily he gave 1t as his view
that within a month after peace was
declared there would be a great
scrambling among nations for this
countrys cotton.
Il can see nothing but good business
in America, at least for the next few
years." said Mr.. Scales. THE steel
mills are busy, and that is the test
America has the stuff to sell, and big
business must be the result.
THE cotton mills are not loaded up
with cotton, and neither are the mer-
chants, wholesalers or retailers. They
are all carrying the minimum Of cot
ton IN stock. These people must buy
eventually. In addition Europe will
use a great deal more Of cotton in the
next few years than she used in the
last few years. Things once made OF
silk in Europe will be made Of cotton
| after the war is over. My idea is that
the stocks Of dry goods throughout
the world are down to low ebb, other
countries being worse off than Amer
lea.
$50 I maintain most strongly that
there is an enormous short interest
in cotton. America next season will
consume between 6,50G,000 and 7,000,-
900 bales Of cotton, and the short in
terest will be even greater in Europe
than in America. The short interest
in actual cotton is the most enor-
nous in the history Of the cotton
trade"
| In this connection Mr.. Scales main
tanned that when the buying Of the
mill owners did begin in earnest they
would find themselves in competition
with the spectators. There would be
a wave of speculation, he said, similar
to that in the stock market when the
war stocks adjusted themselves to
new conditions.
| There's Germany" continued the
cotton man. THE other day she offer
ed to buy 100000 bales Of cotton at
Is cents a pound delivered in Bremen
Before this years crop has passed
away Germany will buy that cotton
and store 1t in America awaiting peace
for it's shipment, and Germany will
pay Is cents for it here"
We'll, what do you think will hap
pen to the price Of cotton?" a reporter
asked.
Now, I'm not going to advise farm
ers what to do with their cotton" he
replied. Il can only give them my
idea Of the future price. am firmly
convinced that the present price is
ridiculously low, and those farmers
who are selling cotton at present
prices are deceiving no one but them
selves, and are robbing no one but
their own wives and children.
IN my opinion, cotton during this
season will sell very, very high-how
high / do not believe any cotton man
can guess within 2 cents a pound. II
will go cents pound higher than
the normal range Of vision Of even an
optimist.
What / say, Of course, is on the
assumption that the war will continue
for another year or two. do not be-
lieve there Is a man living who would
be willing to be short Of cotton over
night at 13 cents a pound If he knew
that peace would be declared. You
can say for me, however, that l, per-
sonally, would not be short and guar
antee to stay short one month after
peace was declared, even if the price
were Is cents pound. Austria would
want 100000 bales out Of this crop
an amount too large to give them out
Of crop Of only 100000 bales
Cotton would leap not by points but
by cents."-New York Times.
STEFANSSoN SAFE