The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-06-08
ASKS HELP FOR FARMERS.
BANKERS AND MERCHANTS CAN
JOIN MOVEMENT.
Cotton In JcOpardy-Prices Go Lower
With Advance of Season-Central
Convention Urged.

Union:
|. 1t seems to me that the time is
F! prOpitiOus for a thorough organization
of the bankers, farmers and mer-
| chants of the South, for the purpose
of calling convention i'm the near flu
| ture in some central point of the cot
ton belt-I would suggest New Or
leans-tO formulate some practical
business plan to protect the 1918 crop
of cotton. AS it looks now, if some
such action is not taken in the very
near future, the South is liable to be
in the same condition in which it was
in 1914.
Conditions seem to point to a grow
ing crop Of probably 100000 bales
or more. The export demand is very
slack and from all Indications is liza
BILE to be poor for some time to come
The carry over of cotton in the United
States is going to be about 1000, 900
bales more than last year, and close
study of conditions will prove very
clearly that if there is not some or
ganizatiOn and cooperation between
producers, bankers, merchants and
fertilizer manufacturers, our crop will
very likely be sacrificed at probabl
considerably less than it cost to pro-
duce it.
A few months ago the farmers were
told by the spinners and large deal
ers in cotton that it was imperative
that the United States produce 6.
large crop Of cotton in 1918 to supply
the requirements of the world That
it was almost impossible for this
country to produce cotton enough
this year to make materially lower
prices than prevailed at that time.
Now, these same people tell us tha,
we have planted too much cotton and
that the prospects are for q large
crop and that the spinners have not
used as much cotton as was anticipat-
ed and that it is impossible to market
the new crop at anything like the
prices prevailing a few months ago.
In consequence of these conditions
they have sold the cotton market OIL
in GO days something like $50 a
bale, aid continue to bear the market
expecting it to go off to very much
lower prices.
Now, it does look as if the busi-
ness interests of the South, especially
the farmers, bankers and merchants,
with the assistance of the regional
banks. could certainly protect this
property and not see our country in
the condition in which the South was
four or five years ago.
The whole South is thoroughly
organized Oh the war situation, and
they have received 35 cents a pound
Tor cotton last season, and 1 feel sure
chat II the proper methods are
used, all Of our trouble can be obv.-
ated. Cotton at 80 cents a pound has
not advanced as much as any other
staple commodity in the United States
jince the war started.
For example, 80 cents would be
about 1875 per cent. increase in the
'alue of cotton over the price pre-
vailing before the war. Dry goods
have enhanced in value from $50 TO
100 per cent. The increase in the
price of fertilizer has been from $50
20 300 per cent; the cost of labor
about in the same proportion. So il
IAN be easily seen that this crop OF
cotton with normal conditions, will
cost at least 20 cents a pound to pro-
luce it.
The plan would suggest, which, OF
course could be modified or replaced
by something the convention would
think better would be to fix q mini.
n1um price of 80 cents for middling
cotton at originating points in the
South.
| Now, If the banks would agree to
lend the farmers 20 cents a pound
On sufficient amount of cotton to
pay their current expenses (holding,
Of course, the cotton and all the orig
inal collaterals that they now hold)
they would certainly run no risk in
granting this credit-the farmers in
| turn agreeing not to sell any cotton
for less than 80 cents a pound, and
also pledging themselves to withhold
| one-third Of their 1918 crop from the
| market for IL months. This one
third should not be sold ut any price
l have made it my business to talk
to quite number of representative