The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-03-26
THE COTTON INDUSTRY

4&AG
Throughout the cotton raising states, those who are engaged
in the cotton raising industry are beginning to realize that they
have or may have a potential part in price fixing ii they care to
play it. This is something new. For generations cotton raisers
have gone along with one system OF logic. They saw that the
law of supply and demand was %immutable, and this law regu-
lated prices, and through its operation the price which they
received was high or low. The more cotton they planted and
cultivated the more there was to pick, and the greater the num-
Der of pounds they picked and ginned the more money they
received, because each pound represented so many cents lhey
did not seem to realize that they had it in their power to
increase the demand and put up prices by limiting the supply
by cooperation and unity OF action. ms lesson UTy arc eaIn
ing and putting into practice pretty generally lhey cannot
make up the deficit in low prices by increasing the output ny
30 doing they are working against their own interests Inc
more they increase the supply the less VIII be the demand or
should the demand remain static, the easier 1t will be to supply
it. There will be no rivalry among purchasers to supply thenf
selves, and prices will sag. One bale Of cotton that brings the
producer $500 costs no more in production than a bale that
brings only $3.50, and in order to receive the larger figure two
bales will be necessary, which will mean double the cost oil
production, which Must be deducted from the selling price
Each producer looked to his own interest solely and his own
interest meant that the more cotton he made the more money
he received The value OF teamwork ana co-opera'o" was
unknown or neglected. What was good for the individual was
assumed to be good for all, The question OF interdependencc
was not considered. Every effort was made to raise as much
cotton as possible. The world needs and must have a certain
amount of cotton. If more than enough is made the surplus will
find no demand, and it will tend to pull down the price OF that
which is demanded. sometimes below the cost of production,
which would mean a direct loss and waste of time and effort for
the producer. The cotton raising states can raise more cotton
than is needed. When they do this they impoverish them
selves. When they ~prudenty limit the output, and at the same
time reduce hecost Of production by raising at home all manner
of food and feedstufs, which can be done much cheaper than
they can be purchased at a distance and shipped in-When this
is done the net profits will be larger, because the outgo will be
decreased and the income will be increased, This elemental and
fundamental lesson is so simple that it was difficult to learn
People thought they were wasting valuable time in thinking
about it, A broader and clearer view of the situation reveals
the fact that cotton raising is not an inevitable and automatic
drudgery imposed by the fates. 1t is a business that should be
conducted on business principles, eliminating all waste and lost
motion, and increasing the net profits to the extreme limit
Were the price of cotton immutably fixed, say at IS cents the
pound, the only thing to do would be to raise as many pounds
as possible as cheaply as possible, But the price Of cotton
fluctuates, going up when the demand comes close to or goes
beyond the supply, and going down when the supply exceeds the
demand, and often to a disastrous figure. The producer has
more to do with price fixing than the consumer, because he has
it in his power to regulate and limit the supply, The consumer
is utterly helpless, and must content himself with such gifts,
great or small, as the gods provide, Supply cannot be controlled
by one producer, or by any number Of producers, 1t requires
the cooperation of all, acting i%ntenigently and Loyalty together
as one man, and this ability to cooperate is a test of citizenship.
The fact that people are meeting together and discussing these
questions and agreeing to act together is most encouraging. A
perfect organization and unity Of action cannot be hoped for all
at once. There will be slackers who will hold back, and there
will be traitors who, after promising, will betray and break their
word. The temptation will be great. When Jones believes that
everyone else is going to reduce acreage and decrease the supply
he will consider 1t his opportunity to increase his output and
reap the reward of better prices, and there are a good many
tones in the world when sefinterest is concerned. The pro
ducers must be loyal to the cotton interests, which means to
each other and to themselves. If they sacrifice the many for
the sake Of temporary personal gain, others will do the same
thing, being encouraged by example, and all will suffer ultimate
and inevitable loss. The planter must dvest himself of his
individuality and consider himself a part'o f the mass of those
similarly engaged, and do that which will rebound to the benefit
OF the mass, Only in this manner can the industry as a whole
be made profitable.
Great meetings are being held throughout the country, ant
the action taken is being made known. This will render united
action easy,
Cotton is like other products, in that If more is mad
than is needed there will be no demand for it. If all farmer
should turn exclusively to raising watermelons or cucumber
they would fare poorly, because there would be no demand 70
their product. And yet there is always a normal and a profit
able demand for watermelons and cucumbers when raised within
season, and in quantities to supply the demand. Cotton pro
ducers are becoming wise to the situation, and will remed
existing evils, There is an abundance Of common and bushes
sense on the farms, and it will solve all problems, howeve
intricate. if it is properly called upon and aroused.
A great meeting of the cotton interests has been held
Memphis, as we'll as at other points, and the beneficent influenc
OF these meetings will be widely felt and will result in niue
good to the cause,
The cotton producers can protect themselves and benef
themselves, and there is no reason why they should not do
in this as in other matters.
About the worst thing yet said about France is that, he
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