Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-02-14

time.
Thanking you In advance for thi.
favor, we are,
Yours very truly,
D. r. Coleman, Jr.,
Jno. H. McMaster.
Mr.. MoLaurin's Reply.
Bennettsville, 8. c., Feb. 10th, 1919.
Messrs. D. R. Coleman, Jr., and Johr
H. McMaster,
Winnsboro, 8. c.
Gentlemen: Yours Of the 7th inst
requesting my views on the cotton stu.
alton. There is no use to discuss the
worlds need for cotton. Nobody but
q fool would deny that the world is
closer to both food and cotton fam
ine than at any time within several
centuries. The price of cotton will &c
higher In proportion to other products
than it has gone during the war Pc
Rod. This war has been conducted
largely by the extension Of bank cred
its and just now there Is temporary
halt, but there can be no great con.
traction in bank credits without pro-
ducing a revolution in all Of the Allied
countries. This Is unthinkable. The
temporary halt will soon be over and
the world will find itself short Of all
kind of raw material.
First. We consumed much labor in
producing war material which Is now
practically useless.
Second. There can be no immigra-
ton Of labor from Europe and 1t is
likely that much skilled labor from
here will go there to assist in the work
of rehabilitation.
Third. On account of the destruc-
ton Of manufacturing plants in Eu-
rope there will be an urgent demand
upon American mills to furnish cloth
for two hundred million people who
have been denied for five years access
to material.
Fourth. It Is idle to talk about
wage reduction In this country. The
actual demand is not only great but
labor is thoroughly organized. Farm
labor cannot protect itself because 1t
has no organization and the high
prices paid union labor will continue
to strip the farms until an actual
shortage in raw material compels a
price for farm labor which will at
tract supply from manufacturing in
dustries. We cannot produce cheap
cotton because the day Of cheap labor
Is gone and will never return. The
present crop cost between rs and 30
cents per pound. How can man rent
a piece Of land and produce cotton at
18 cents? II he has any sense and
looks at the price of October cotton he
will 90 to town or to the railroad,
where he can get $500 per day. The
land owner will be forced TO cut acre
age because ne cannot pay sufficient
wages to attract labor. There have
been four short crops and If cotton
does not go back to 80 cents before
April the acreage and fertilizer will be
automatically reduced. 1t is possible
that the 1919 crop under these condi-
tions will not exceed ten million bales,
in which event $1.00 per pound would
not surprise me. The crop this year to
supply the needs Of the world fairly
we'll, would take eighteen million
bales. I have studied the figures care
fully and this is my deliberate opinion.
All Of this, however, will not help
the man who cannot finance his cotton
for the next sixty days. Last October
I made a speech to convention in
Charlotte, N. c., in which I advocated
a government fixed price Of 35 cents
for cotton. I believe this could have
been done at that time, but our lead
ers in congress and elsewhere saw
nothing but q cotton famine, failing to
take into account this reconstruction
period. Cotton has had loan value
of 20 cents per pound and the same ell
ement that gobbled up the crop in 1914
by forcing a call for margins, are 60
ing to get as much of this crop as they
can. While this works individual hard
ship, 1t does not change fundamental
conditions, it merely means that the
middle man will reap the profits In
stead Of the farmers. The middle men
have always reaped the profits and
will continue to do so until the farmer
learns to protect himself. I came to
the conclusion ten years ago that this
could best be done through our state
government. I have no confidence In
voluntary organizations. I organized
a state warehouse system and 1t was
q success up to q certain point, but 1t
can never be effective in crisis with
out state insurance and bank to han
die agricultural paper. The Federal
reserve act provides the needed chan
mel, but If we do not place ourselves In
a position to use 1t, it is childish to
whine. Each crop must stand upon Its
own merit and carry itself. The bank
cannot make advances on the 1913
crop while they have 20 cents pound
loaned on the 1918 crop. The Federal
reserve act provides for discounts bas-
ed upon stored cotton and also dis
counts upon notes secured by mort
gage on a crop in process Of produc-
ton. The two things are entirely sep
arate and distinct. Mr.. w. P. G. Hard
ing gave Senator Banks and myself ev-
cry encouragement to organize a bank
in connection with the state warehouse
for this purpose, he gave us letter to
the governor of the Reserve bank IN