The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1920-05-13
WHAT Is COTTON WORTH?
Bv w. w. Morrison.

portant factors that finally determine
the price of cotton. Hence. il seems
well to keep in touch with how he
is viewing current events, and what
these views forecast as to the fu-
ture.
What will it cost to grow the crop
of American cotton this year? This
question is now uppermost in the
minds of growers. There never was
a time in the history of cotton pro-
ducton when it so vitally concerned
civilization as it does today. Obvious
world conditions make it so. 1t costs
s45 per month to feed one plow ami
NAL. Labor costs something more
than 800 per month and the supply
is uncertain and inefficient even at
that. Planting seed costs from $3.50
to $40 per ton and the quality is in
different. In fact, every item that
enters into the cost of production is
higher than was ever known before.
Based on the average yield of the
last five years, the price Of these
items indicate cost )f something
Hike so cents per pou-... The reac-
tionary speculative element will hard
| ly believe this, nor is it likely to be
believed by a large section of the
spinning industry in this country and
! in England, especially those of the
! industry who follow the lead of such
economists as Professor j. a. Todd,
who recently stated that it cost %
cents per pound TO grow the crop OF
1919 and, incidentally, embarrassed
us by not offering a single veStige Of
evident to support this statement, al
! though it involved a matter of the
most serious importance.
However, what these reactionaries
! and these alien economists and their
! followers think as to the cost Of
growing the crop is wholly unimpor-
tant, and it has been SO for quite a
long time. Thousands of farmers,
merchants and bankers-the real
builders of the South-believe that
the cost of production this year will
be so cents per pound and more.
Their view, and their view alone, is
important. For the history of recent
years makes it evident that whatev-
er they conclude as to the cost will
definitely determine the course of
prices. and not the conclusion Of re-
dictionaries either at home or abroad.
The producers know all about the
| big profits made by the mills in this
country and in England. While they
are more acutely alive to what this
crop is going to cost than ever before
they are just as much alive to the diff
ference between what they are re-
celving for their cotton and what
they are paying for it when they buy
it back in the shape OF manufactur-
ed product. 1t is quite the practice
now for the farmer when he buys a
piece of cotton goods to weigh it and
! figure out just what percentage this
difference amounts TO. The result is
often electrifying and is frequently
the subject of the widest comment.
Whenever money gets tight among
the speculative interest in the large
ccnters and rates go up, the South is
now participating very largely in the
loans extended to relieve such situa-
tions. In view Of the fact that these
loans are made from a surplus above
what the busines Of the South re-
quireS, there is an amazing incOn-
sis tency in assuming that one Of the
staple products Of the South is going
to be depressed by these financial
disturbances. Yet this is just what
is assumed by the seller every time
cotton contracts break on account Of
tight EIoncy in the big ccntcrs.
Tie cotton producers are better in
formed now than ever before as 10
the cause of these financial disturb
Ianccs. They know that the Sauth is
leaning a steadily increasing amount
of IT,; sarplus money TO relieve tn"
re! ulting financial distress. They FIRE
Iqueutly point out the utter ab#urdity
IOi expecting cotton whose economic
position is essentially sound, to suf-
fer because speculative position
foreign to cotton has proven 10 be "S-
seutlally unsound. They emphasize.
however that il has been the sellers
lof fuldr, contracts who have SUI
lfcrvd in every case on account OF this
irrational Interpretation and not tn"
iprodrCcrs.
Such. il is felt. is fair summary o!
In" dominant trend Of current
'thOu-hf among tho cotton growers
and their ronicrc"s which include tn"
hank"r+ and mcrchaytS of IN" South.
DO YOU think their Views viii cos
':"ul I'll, price, or will it b." ""9'rolI""
i