Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1919-03-05
Tho Cotton Grower vs.. fllr cotton
Speculator.

cises our editorial o. FoIm1ory |,
which advised bankers 80 reduce
their cotton loans by induoiis heir
borrowers to sell cotton at tho then
prevailing price of 2TA cents
pound.
From the trend Of PR snce
that time it would appear 1ht. our
advice was sound, although Nc edi
torial was not written witt lew
10 the immediate fall in price
of the staple. What We he'd in
fcind was the economic poai'.on Of
the world. In 1910, with urnp Of
100000 bales, the syeraH price
was 5 cents pound 1Do esti-
mated crop of 1913 H. H. 1000
bales. The total visible supply of
the world on December 81 las, vas
a,0l4,352 bales, against an average
visible supply at same date ior i've
pre-war years Of 5,709,633 baIes,
hut in the United States, tha 9iaible
supply was 2.S96.933 bales against
an average of 1,S38,626. The 1919
crop has been estimated ut la,0QO,-
600 bales.
Our correspondents have ASKED us
some pertinent questions, which we
will andeavOr to answer.
First. why should moi tha trr}N-
er carry his cotton as well - Ihe
srnculator?"
If a farmer can afford q" sarry
his cotton Or, in other words ~ -
farmer chooses to becoma y ac0-
lator in cotton and has Tie Nov
to carry it, surely he has ibs ann
right to carry it, with a y..- .
higher market price, as has "Hv
other speculator in the stur'r HNL|
when the farmer asks hi &.. 10
go into partnership with him Il
speculation which may net Ia, INK
only its legal rate of interest . Rae
loss Of the interest and NG.l o1
the principal if the market i@Hs .',A
case Is quite different. Now. aot-
, ton speculator who buys 1000 bales
Of cotton, puts it in wuCoH,Nso
and takes receipt to Uanl,
where he borrows a percentn.,n ct
the market value Of the couOI must
within limited period di$,r Hf
I That cotton and pay of his ivyr, 80
may gain, or he may 1850. The {
! ,"ans32i0r. hut The trade ~ abSu-
.lmely ,a.rd rs regard .,
/ ton farmer, the case is qu q Giitt
cni He already has his seq IN /
ground and his new crop Of cUttu-.
is growing. He is sure to have gr.
other stock of cotton when lhr piui,
/ ing season arrives. Unlike 'no sue
ulator who has completed HIS trad.
even at Il loss. the farmer j. ccrt&H
to have more cotton for s1iu, ana
the more he has the les ruaue
he has Of holding up the l"ire Iu
the meantime, the interes ON H
loan is gradually but surc'v NGdir.
TO his cost per pound, and 4" lUuEcr
the loan runs the higher &C cost
A point raised by one Of car CORE.
spondents is that cotton farmers
are this year in better harc 10
hold their cotton than eyc' before
and that the banks in tie cotton
territory have plenty Of mouoy,
Our inquiries at Easteru han}R
with large Southern connections do
not bear out this statemeNt It has
been the custom for Soutl nln bAi'ts
to rediscount, or borrow .rom The
Eastern banks. during tins cottori
season, and to liquidate these loans
in the fall, when the cottOn IS sold.
The loans are supposed t. be ali
paid by the last Of December. and
ordinarily by the middle ~ January
So or 90 per cent Of them are paid
off. This is not the case 'o-day. Ia
one Of the large New York banks.
we have been informed loans to
Sou thern correspondents are 100
per cent above normal, GHa nearly
that percentage Of incrcaso s &LOWn
by several other New YORK. banks,
while balances, instead o3 bniug
from twenty to twenty-n' tronsand
dollars-thc usual amouu'a III nor
NAL timcs--aro now rum n% IRON
twelve to fifteen hundl HG dollar;.
!his does not look as il TIE &outh
was paying its debts. the nain
reason why this condition Of AFFAIRS
obtains is. Of course, that lUrmers
arc refusing to market ta&ir cotton