The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-03-22
A Business Proposition
Mr.. Mcleod States Case For
Acreage Reduction


gratifying TO those Of US who are Civ
| ing our time and best thought to the
cotton acreage reductic.l movement
According to the reports very few
farmers have refused to sign the
acreage reduction pledge. About four
or FIVE have given expression to their
opposition in the newspapers. The
logic Of some is very illogical, if there
is such a thing as illogical logic
One writer states that the United
States consumed in 1918 seven and
onehalf million bales and will con-
sumo more this year now that the
war is over He neglects to state,
however, that hundreds of thousands
of pounds Of cotton was used in the
manufacture of explosives and that a
large per cent Of le cotton mills ca
pacity was taken up by army rush
orders. Such large per cent of the
army rush orders that there was not
enough left to supply the prosperous
civilian wants. The mills. in an ef-
fort to fill the orders of the govern
ment as rapidly as the goods were
needed ran night and day. When the
arinistice was signed large FER
cent of the government orders were
cancelled and the mills began to cur
tail production, and now they are
consuming less than half a million
bales month. AT the present rate
the domestic mills will not exceed six
million bales in 1919, and it is prob
able that they cannot consume this
year more than six and one-quarter
million bales. even if conditions i'm
prove very materially.
One writer states that Germany.
and Chile are all hungry for Alneri-
can cotton. He does not tell you,
however, that there is an embargo on
cotton TO Germany. which may be
lifted in sixty days. Or it may be six
months 1t has been very difficult,
for Germany to finance the
purchase of foodstuffs necessary to
keep large part OF her population
from starving, and Germany cannot
finance more than half a million bales
Of cotton in 1919. The French govern
ment buys the cotton for the French
mills. and limits the mills to so many
bales per month. England allows her
mills 10 get some American cotton,
but nothing like what the English
mills could consume if the restrictions
were removed. England has removed
the maximum price to be paid for
cotton on all except American and
~ .cS h Ia Il
the price restrictions were removed ;
the English mills would buy more
cotton. l have never heard of Peru
and Chile using very much American
cotton; they are not a factor.
The question of acreage reduction
should be treated as business ques-
ton. If someone would offer to sell
stock in a manufacturing plant or
some other enterprise that was not
profitable he could not find a pur-
chaser. When farmer plants cotton
he is making an investment. and II
the investment is not profitable he
should not make it any quicker than
he would invest his money in an un-
profitable manufacturing plant.
A large exporter said to me few
days ago that if the United States
produces IA 600, 900 bales Of cotton IN
1919 that cotton would sell for ten
cents before next January. and II they
produced 100000 bales it would
sell for less than fifteen cents before
next January but if they produce
only between eight or nine million
bales cotton would sell for thirty-iive
or forty cents before next January
am satisfied that if we produce It,
100000 bales this year cotton Will
not sell next fall for more than fifteen
cents.
1t is estimated. that about 100000
bales of American cotton has not
been marketed. and if we make fail
crop this year, 100000 bales, the
100000 bales plus the 1000. 900
bales from 1918 will not sell for more
than eighteen cents pound, or $50 a
bale. This is three cents pound
more than I believe it will sell for.
If we produce 100000 bales this
wear. plus the 100000 bales Of the
1915 crop. it will sci; for not less
than $3.50 per bale, probably sl!0.
Fourteen million bales, Plus i,ooo,-
600 bales. 21.O0O.0oO bales, at $50
per bale. is $3.50. 100000. Eight
million bales Of 1919 cotton, plus =
oOO. 900 bales from 1918, 15.ooo.ooo
bales. at $50 per bale, is s2.25o,-
ooO. 600. Therefore the 5000, ,ooo
bales of new cotton, plus 1000. 900
carried over. would sell for $35o.ooo,-
600 more than the 100000, plus
| 7 900 900.
South Carolina produced last year
100000 bales. 1t is estimated that
we have about 100000 unsold. A full
crop. 100000 bales. plus 100000 is
100000, at $50 per bale. is $lS?.-
900 900. If we reduced our produc-
ton approximately one-third. or not
make more than $4,000 bales. Plus
the 100000 carried over, 1,63o, ,ooo,
at $50 per bale is s247,'oo'ooo
more than full crop, plus the carr
| over would sell for. 1t will cost al
least $3.50 600 more TO grow "'V.-
| 600 bales Of cotton than 1t would &c
| GROW corn or some other foodStuli