The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1919-02-20
Mr.. Laurin's Reply.

Messrs. D. r. Coleman, Jr., and John
H. McMaster,
Winnsboro, S. C.
Gentlemen: Yours of the 7th inst.
requesting my views on the cotton sit
uation. There is no use to discuss the
worlds need for cotton. Nobody but
fool would deny that the world is
closer to both food and cotton fam
inc than at any time within several
centuries. The price of cotton will
go higher in proportion to other pro-
ducts than it has gone during the war
period. This war has been conducted
largely by the extension OF bank cred
it's and just now there is temporary
halt, but there can be no great con-
traction in bank credits without pro-
ducing revolution in all of the AL
lied 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 mater al which is now
practically useless.
Second There can be no immigra-
tion Of labor from Europe and it is
likely that much skilled labor from
here will go there to assist in the
work of rehabilitation.
Third. On account of the destruc-
tion 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 &C
cess to material.
Fourth. 1t is ilde 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 it
has no organization and the high
prices paid union labor will continue
to strip the farms until an actual
shortage in raw material compels
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 25 and 80
cents per pound. How can a man rent
a piece Of land and produce cotton at
Is cents? II he has any sense and
looks at the price OF October cotton
he will go to town or to the railroad
where he can get $500 per day. The
land owner will be forced to cut acre
age because he 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 pos
sible that the 1919 crop under these
conditions will not exceed ten mil
lion bales, in which event $1.00 per
pound would not surprise me. The
crop this year to supply the needs
of the world fairly well, would take
eighteen million bales. have studied
the figures carefully and this is my
deliberate opinion.
All Of this, however, will not help
the man who cannot finance his cot
ton for the next sixty days. Last Oc-
tober 1 made speech to a convention
In Charlotte, N. c., in which I ad-
vocated government fixed price of
35 cents for cotton. I believe this
could have been done at that time,
but our leaders in congress and else
where saw nothing but a cotton fam
inc, failing to take into account this
reconstruction period. Cotton has had
loan value Of 20 cents per pound
and the same element that gobbled
up the crop in 1914 by forcing a call
for margins, are going to get as much
Of this crop as they can. While this
works individual hardship, 1t does
not change fundamental conditions,
it merely means that the middle man
will reap the profits instead of the
lol ulOi hC lllCu nave
ways reaped the profits and will con-
tinue to do so until the farmer learns
to protect himself. / came to the
conclusion ten years ago that this
could best be done through our state
government. have no confidence in
voluntary organizations. / organized
a state warehouse system and it was
a success up to certain point, but it
can never be effective in crisis with
out state insurance and a bank to
handle agricultural paper. The Fed
eral reserve act provides the needed
channel, but If we do not place our
selves in position to use it, it is
childish to whine Each crop must
stand upon its own merit and carry
itself. The bank cannot make advan-
ces on the 1919 crop while they have
20 cents pound loaned on the 1913
crop. The Federal reserve act prov