Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1918-05-21
MESSAGE FROM MeLAURiN
Man Who Knows Analysis Of Geono
mic Situation.
Editor of The Yorkvilie Enquirer.
Yorkville, $. e.


Editor of The Yorkvilie Enquirer.
Yorkville, $. e.
| Dear Sir
Since recent drop Of about 10
cents Il pound in the prices quoted on
the New York Cotton Exchange / am
receiving daily more letters than l can
answer requesting opinion and advice.
| take this method Of replying to same
as think the matter is OF sufficient
! interest TO warrant publication. Cot
| ton cannot be considered in this great
crisis, except in the relation 1t bears
| to war. England in the beginning
undertook 10 do business as usual
and found that il was impossible. We
have found that war meaEs financial
prosperity and not poverty as predict
| ed in 1914. We must realize that the
war can only be won by constant
advance in wages and prices OF pro-
ducts Consumption increases among
wage earners instead of diminishing.
Labor and its products are diverted
each day from the business as usual"
channels TO meet war purposes. We
| have laid too much stress on mere
money in the prosecution OF the war.
The government is not able to spend
the money we have already paid IN
from sales of bonds, war stamps and
income taxes. What we need is the
production Uf cotton, wheat, corn, iron,
coal and steel. Money by itself can
not win the war, il is only useful to
stimulate the production Of the mater
iul and supplies. Another thing the
morale Of the people must be kept up.
This Is only possible with prosperity.
Cut the price of cotton to the cost OF
productions, and no German army
could infiict such u blow on the morals
of our people. | regard the present
war situation as the most serious since
the battle on the Marne. The debacle
in Russia gives Germany not only ac-
cess to food, hut has enabled her 10
bring at least Il million veteran troops
from the Eastern front. Pric" fixing
has driven the gamblers almost entire
" out of wheat and stocks, they are
now turning to cotton. The price of
cotton depends largely upon the ability
of the farmer To borrow on II. pay his
debts and market gradually. l believe
that there is a concerted attempt be-
ing made through the New York Ex-
change to establish q low level OF
prices for the 1918 crop. They care
very little about the remnant of the
present crop. they are after bigger
things. 1t Is easy for a coterie Of
spectators to sell millions of bales Of
cotton on the exchange between them
selves and make outside settlements
These fake prices, mark futures down
on the board. The banker who has cot
ton loans sees the market report and
calls the loans. This forces spot cot
ton on the market at constantly de-
clining prices. The government es-
tablished minimum prices on stocks
and bonds i'm 1915. 1t has done so on
wheat and IL this speculation in cot
ton is not checked, it will do 50 on cot
ton. / think the government should
make it illegal to sell futures on any
exchange at less than 80 cents a
pound. The fluctuations should be
from 80 cents up not 80 cents down.
We should not turn a bale loose at
less than 80 cents. Cotton was 13 1-2
cents In the summer Of 1914 and 80
cents now Is not mnre rrn9tat1a. than.
13 1-2 cents was then. Cotton goods
are too high in proportion to spot cot
ton. 1t is the manufacturers, not the
planters who are making excess pro-
| fits. Look at the contrast with pre-
war conditions:
Cotton Domesties July IS, 1914.
The prices are first for July, 1914,
and then for May 5. 1918:
Standard 27-inch dress gingham,
1-4c; CSC.
Standard 4-yard sheeting, &c; 23c.
quarter pepperrill sheeting, zoe;
62 Lee.
VIM. Anderson Ivanhoe gingham,
10 Lee; 80 Lee.
VIM. Simpson standard prints. &c;
% l-2c.
A. c. A. bed ticking. 10 l-2c: 3S 1-2c.
Cotton blankets, special size and
weight, 75c; s2.25.
Child's ribl ed stockings, per dozen.
S5c: s2.25.
The above prices are just a few
taken at random. The prices go
through the whole catalogue Of items
manu-" ictured out of cotton. Now let's
take the price of raw cotton July 18th,
1914 and May 5th, 1918. Middling cot
ton was selling at small interior points
just before tho war was declared at
l3 l-2 cents n pound. May cotton on
May 5th. 1918 was quoted on New
York Exchange ct % Ia cents. Look
at comparison between raw cotton and
manufactured products. Cotton on
May 5th. 1918 is hardly 80 per cent
higher than on July 18th, 1919 pre-
war prices; the manufactured products
run from 800 to 400 per cent higher.
There should be bank in connection
with the state warehouse to handle
nothing but agricultural paper. The
Federal Reserve Bank and the big
New York banks, would look to this
institution to say when loans should
be called and take advice from 1t, in
stead OF speculative interest. Mr..
Harding Of the Federal Reserve Board
and Mr.. McAdoo are our re lance and
some steps should be taken to enlist
their aid. as was done in 1915. II We
stabilize credits based on cotton. the
price Of spots will take care Of itself.
It Is not cotton prices. but cotton
credits that controls. Respectfully.
John l. McLAurin.
Bennettsville. May 9, 1918.