The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-06-02
Situation Not Understood.

-'|' - = vi AtS III . IL
not only carry their cotton but to give
assistance to the spinners is contrary
TO the conventional opinion held by
most people who live outside of the
cotton-prodncing section, and also by
quite a number of those who live within
larger centers in the South. The rec
ordsJ however, clearly support the view
that their resources are ample and fully
Justify the organizations launched yat
New Orleans looking to that end. II
VIII perhaps be well to recite some OF
the more important features of these
records since they are illuminating and
win no doubt be more convincing than
any, argument that can probably be
made In that behalf.
rake, for instance, the records COW
ering the deposits in Southern banks.
These deposits as compared with a
decade ago show a really wonderful
gam In the surplus wealth Of the South
during this period, The increase, how
ever, which has the most significant
bearing on the matter under review has
been In the deposits owned by the agri-
cultural classes. This increase, 1t Is
talrly safe to say, will average around
400 per cent as compared with ten years
ago. This is fully confirmed by the Of
fetal figures covering the wealth re-
turned from Southern farms during re-
cent years, of which cotton contributed
only about one-fifth, counting live
stock as part of the products of the
farm, 1t should be pointed out in this
connection that these deposits owned
by the farmers differ from commercial
deposits In that they reflect generally
the surplus earnings of the depositors
which commercial deposits do not al
ways do.
Now let us take the records covering
the marketing of the cotton crops dur
ing recent years, 1t is true the cotton
producers were demoralized by the war,
but 80 We're every other class OF bust
ness men. 4 They certainly recovered
their %equipoise al soon as any other
members OF the business community,
With this n exception the records
show that the cotton growers have not
been ~appreciably disturbed by any
events during the last six years, how
ever sensational they may have been,
ried tho surplus left over from the
great crop grown In 1914. On the first
of January, 1915, the greater part Of
this crop was on hand. Capital had
taken fright-the banks, with rare OK,
ceptions, refused to help. 1t was a
great burden, but the producers with
out financial aid of consequence actual
" carried the greater part OF it until
the price was forced well above 10
cents, which was then considered the
cost Of production.
Producers Garry Burden.
This record was c~onsplcuously sus.
the wan however trying 1t may have
been Notably during the famous break
in future contracts Of Feb. /, 1911 IN
the spring of 1918 and through the
dramatic decline from 81 to IS cents
Of this year. 1t should be emphasized
for 1t Is q significant part of the his
tory Of these events, that during the
sensational decline of this year, as
well as. during other years, the only
weakness Of consequence that devei-
oped In the spot market was in cotton
that had passed out OF the hands of
the producers. These records clearly
Justify the statement that. had not the
OF cotton for very extended periods
throughout the war, the South would
have been overtaken by a series Of dis
asters Which would have crippled its
future for many years and probably
for generations,
In spite OF conventional opinion to the
contrary, these records attest the en-
tire adequacy of the OF the
producers for the undertaking project
ed by the convention at New Orleans,
and they Incidentally reveal the prog
ress and elimination OF the evolution
which a prepared them for this
epochal change which the Undertaking.
signifies. II will be interesting to"note
that this evolution was recognized
much earlier and the significance OF It's
trend was much more correctly inter.
preted by the cotton-producing interest
than It was by the speculative and
spinning' interest OF the country This
was brought out oonspicuously by the
sensational events Incident to the war,
Many OF these events greatly disturbed
the speculative and m"anufacturine
markets. In 20 instance, however, did
they a~ppreciahly disturb the equipoist
of the growers.
The cause of this is really not diff
cult to trace, You see, the pressure or
life Is very strenuous from every sid,
In the cities, While many business mer
In the large centers are unusually keer
and resourceful, they, by reason of thi.
pressure, are apt to take a superficial
view OF the current events and to mis-,
the deeper Significance Of trends tina
are, more or less, vitality changing IN,
meaning Of economic, industrial anC
business conditions, Hence, we ofte,
see the leaders In large centers, espe,
cially the leaders of speculative inter
est. persistently loyal to orthodo,
standards long after changes in basi;
conditions have made these standard.
essentially unsafe As guides.
On the whole these thinKn sharpl