The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-11-17
South Has Solved Problem
OF Financing Cotton Crop
Editor Leech of Memphis Press
Says Optimism Has Replaced
pessimism
EXPLAINS SITUATION
One of Best Informed of South
ern Writers Believes Situa.
tion Is Safe
BY E. r. LEEcH.
Editor cf The Memphis Press.

| Memphis. Tenn. Nov. ie.-some-
/, body once called cotton '@rhe fabric
OF civilization The title was ap.
proprtafe-~and because cotton IL 81
vital to civilization. the south. In par
| ticular. and the world. la general
have lnr weeks been concerned over
the most serious financial crisis IN the
cotton -srowing states since the Civil
War.
A few weeks ago the united cotton
people OF the nation threw up their
hands and yelled Ruin" For right
at tho marketing season, cotton start
ed a sudden and sharp decline thaE
carried the price down 10 50 per cent
below the prevailing figure of plant
ing time
Committees rushed to Washington
and appealed Tor aid: stories Of hold
Ing movements and sin burninga filled
the telegraph wires. Northern man
facturera. who sell autos. shoes.
pianos. pans and q million and one
other articles in the south. suddenly
saw one OF the nations greatest mar
kets menaoed By financial depres-
sion
The same men who rused 60 WSssh-
lngton are today sorry they diA -.
Those who yelled ruin" will now op-
timistioally tell you that. tn apite of
"A tremendous loss. the south wiiI
scome through safely" ard that the
lesson IL Is learning viii bear fruits
In better financial and agricultural
conditions In the future.
In short the ralhiic feeling has aps
parently run from abiect pessimism %
optimism.
There are two phases 20 the present
crisis. FIRST. the growers say the 1920
crop cost Is 10 IS cents a pound TO
produce-ana the present selling price
II below cost. Second. more than s.
O00.o0o bales remain in warehouses
from the croIss Of tho last three years
on which millions of dollars have heen
loaned. aud there l. no market for this
catfon-
These s.eao go. bales Of holdover
cotton" represent that part of the crop
which i of iow anailty-ahori. fiber.
stained and filled with trash--whleh
American mills viii not use. Germany.
alone. used 60 take more than 1.0oa.-
coo bales of this yearly for rope. bur-
lap and the heavy clothing OF her
peasants. with the German and other
central European markets closed hy
war and inability 20 purchase because
of lack Of cash or credit. this cotton
backed up on the American market.
Thus the south IN trying To get rid
% ifs old cotton and al the same time
secure better price for It's new cot
ton.
The government early refused a.
handle the situation. The south then
set o. work for itself out Of It's dsg-
ficulties have arisen a number Of
plans for export corporations. CO.
operative marketing and changed ag~
ricmlturaI conditions which. whiie
they may not save this years crop.
promise tremendous improvement Ia
future years.
Meanwhile. bankers. buyers and
cotton factors declare from 90 ia -
per cent Of the 1920 crop viii be held
for some months and then marketed
slowly. and that the south has she q
nances 20 carry out this program
They also expect a gradual rise in raw
eotton prices and a steadily imuroy
Ing financial situation.