The Dawson news. (Dawson, Ga.) 1889-current, 1920-10-19
,uy FARMERS FACING RUIN
&C PRICE OF MONEY CROP
nrsCENDs TO LOW LEVEL.
EXPECTED FORTY CENTS

Riders Adding Alarm to Situation.
ATLANTA. Ga.-The might rid
mo" campaign to force the closing
a. +be cotton ginneries until the price
If the staple advances to 40 cents a
nonnd has assumed such proportions
+bat the economic life of the section
is menaced.
In Georgia, Alabama, South Car
oIina and Florida might riders" have
U onstad notices on scores of ginneries,
i pDoT; the owners that no cotton
must be ginned until the price reach
ps 30 cents. No verbal threat IS
made, but a box of matches is left
with each notice, and the gin owner
Understands that violation OF the
warning means a fire.
In certain counties the might
riders" not only have posted the gin
neries, but also have posted cotton
feIds with notices that no cotton
must he picked. Some mercantile
Establishments likewise have been
ordered to close their doors until the
nrice of cotton advances.
Cotton Fields Posted.
The result of the might riding
tactics has been to foster sort of
terrorism that is interfering great
" with the orderly process of bust
ness and that threatens to lead to
widespread economic demorallzatlon.
The posting of cotton fields with
notices warning against picking has
had an especially terrifying effect
on the negroes, who believe that 1T
means a revival of the ku-kluxism
prevalent in reconstruction days. The
belief of the negroes is strengthened
by the fact that the old Ku-Klux
Khan has been reorganized, is char
tered regularly under the laws of
Georgia and has numerous lodges In
this and other states. The organiza-
ton, however, has nothing to do with
the might riding" campaign, being
purely a fraternal organization, &C
cording to the reorganizers.
But the negroes credit the posting
of the gins and fields to the ku-klux.
In a number of sections it is said to
be impossible to induce a negro. to
ENTER cotton field that has been
posted by the might riders"
Owners of ginneries are keeping
their property strongly guarded day
land night. Guards have been in
structed to shoot to kill. So far few
gins and stores have been burned,
but insurance companies are alarm
ed and it is claimed there has been
Ia wholesale cancellation of policies
frit1c GfnFnC
Governor Dorsey, of Georgia, and
Governor Kilby, of Alabama, have
Issued proclamations denouncing the
night riders" and offering rewards
for their arrest and conviction. The
might riding" however, is indica-
tive of general dissatisfaction
throughout the cotton belt.
Below Cost of Production.
With cotton ranking between 80
cotton men have been on a financial
joy ride The drop of the staple to
70 cents a pound and less will mean
the end of this joy riding. The cot
ton men, therefore, are said to be
willing to adopt almost any method
Ito keep up prices for the staple.
The present crop was grown with
the expectation of being marketed
lat 40 cents. Labor, fertilizer and
practically everything that went into
the production of the crop were paid
tor on the basis of 40 expectation.
With prices dropping, the farmer
may have to take even less than
$l20 for the bale that he expected
TO sell at 5000. He sees ruin in the
situation for himself and in the south
whenever the farmer is crippled the
INJURY extends through the entire
economic life of the section, as
southern business is buttressed on
cotton, and when cotton is in slump
Ihe effect is felt in industrial plants,
mercantile establishments and banks.
1t Is the far-reaching influence of
cotton in southern economic life
mat makes the situation serious.
Bankers. merchants and industries
OF all sorts already are contracting
IN IN Keeping with the drop in cotton.
Inc enormous reductions being ad-
Yertsed by the merchants are a cor
allary of the defation in the price of
cotton.
With no cotton being ginned, and
consequently none being marketed;
no debts are being paid in this part
u the south. Ordinarily by the mid
uie OF October millions of dollars
VI obllgations contracted in order to
make the cotton crop are hquidated
N N part or in toto, but nothing like
mat Il, IS noted this season.
Inc farmers blame the federal re-
serve bank for the low estate to
winch cotton has fallen and the con-
IS!eequent check to southern economic
me. The statements of Secretary
BDavid F. Houston and Governor w.
r. y. Harding, of the reserve board,
maj the reserve banks would not eX-
oeud credits to enable the holding of
IoGCon until the price advanced has
t tgo 10 intensely bitter feeling against
mem N among the farmers.
northern Firms Getting Money.
81 l. b. Jackson, director of the
o'aIe bureau of markets, has issued
reply to Governor Harding, stating
~; maj II was up to the south to finance
i crops, as the south could not do
Tor this section. Mr.. Jackson de-
JARED that no one had asked the
urn .II to aid the south.
,ou Perhaps Governor Harding will
M MI Us why, if the north has so much
nIouey, two northern mercantile cor
poIaIions now are borrowers from
- I'm IN excess of that loaned on ac-