The commonwealth. (Greenwood, Miss.) 1896-1923, 1916-02-11
A BLESSING IN DISGUISE

1t is now quite evident that the
comparative smallness of the cotton
crop with which the trade is now
dealing was a blessing in disguise;
for, with the extreme scarcity of
ocean tonnage and the blockade of
the Central Empires, a big crop
would have been a serious burden and
prices might have sunk to a panic
level. There is still a wide difference
of opinion as to the size of the crop;
but, even on the basis of the highest
figures now current, the bulk of the
1915 yield will go to American
spindles, thus reducing the load, (in-
elusive of the surplus carried for
ward from 1910 to readily manage
able proportions.
And, again the South has been
greatly helped by the abnormally
high prices of seed. Many extra
millions have come in from this
source and have assisted producers
to finance the crop itself. Time was
when the seed must have been wasted
or have brought so little that the in
come from ~by-products would have
been trifing. But science was con-
stantly at work, as well as the boil
weevil, and the South is consequently
in a position to face the problems
posed by the war.
1t is fortunate, too, that the estab-
lishment of the Federal Reserve Sys-
tenn conceded with a worldwide dis
.:":ation of business. I;snks r glad
to lend on cotton, because they krow
.i,at the collateral may be readily
utilized for redlscouCts, in case Of a
pinch. 1t vas not so in old d.,ys.
On the contrary, Gotten was often a
dag, because loans could not ne OBJ.
tanned, except at Es:,-1ous rates, rs
Sew York cond always put on the
screws and a ba:. wishing to re
dix it's portfolio had M other
outlet.
Within the very near future, the
South must determine its policy, with
regard to acreage. If conditions
were at all normal, it would b<
easy enough to decide, since "new
crop" options at twelve and one
half cents would present the Ger
tainty of a handsome profit. Blu
conditions are by no means normal
nor can anybody pretend to sa,
whether they will approach the nor
NAL before the crop of 1916 begin!
to move. If peace came during thu
summer, very high values might b,
seen, even with a big acreage and
bumper yield; for the Central EN-
pires would, probably, have to i'm
port huge quantities and the scarcit,
of tonnage would be largel,
relieved by the British merchant ma
rine's return to peaceful uses. Blu
it will not do to base calculations up
on hopes and contingencies. Rattle,
should the South guard against tn
worst, by preparing to feed itsel
while the war lasts.
The South IN bankers took thi
view at a meeting held in New Or
leans toward the end of the year
strongly persuaded of the necessit,
for a moderate acreage, they cate
gorically said that no farmer Shout,
be financed, unless he agreed to pu
a certain part of his land under grail
and grass. Nothing has meanwhile
happened in the market to alter tn:
view. In truth, the extreme s~carcit;
of tonnage and the resultant conges
ton of the foreign demand has dem
onstrated the unwisdom of depend
ing upon a single crop.
AS a matter of fact, the banker
alone can exert a decisive infuenc,
upon the acreage. 1t is perfect,
idle for bull spectators in cotton t.
preach Investigation; improviden
farmers left to their own devices, will
plant all they can when they see new
crop futures quoted at twelve an,
a half. But the improvident farme
inevitably depends upon the bank; i
he were provident, he would not wan
credit. The problem of acreage
therefore, rests with the bankers, il
the main. Will they hew to the lin
traced at the New Orleans meeting
or be tempted to forget the bite
lesson of 1914? To doubt that the
will hew to the line is to assume tina
they are shortsighted enough t
furnish the cash for a gamble, tn
chief profit of which must accrue t
the ~improvident farmer, whereas tn
whole loss must fall upon their ow,
shoulders. - New Orleans Times
Picayune.