Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-05
The Cotton Situation

recommendations that are Of capital
Importance to the South's farming and busl-
ness interests From the character OF those
who met to consider how the grave prob
lens now pressing for an answer might be
grappIed, it was foregone that sound ideas
and, better still, safeguarding lines of action
would be forthcoming. Among those assem-
bled were the highest officials of the Ameri
can Cotton Association, of the State and the
National Farmers Union, of the State De-
partment of Agriculture and Bureau OF Mar
kets; men of eminence in banking and mer-
camille affairs; and influential members of
the Georgia delegation of Congress, together
with that veteran of many hard-won bat
tie for the cotton growers rights, the senior
Senator. From such counselors, useful advice
was to be expected and useful advice was
given.
First for their conclusions. eve find that
the present price of spot cotton is below the
cost of production. we DeneVe tnaI Ill"
price suggested at Montgomery by the Amer
lean Cotton Association, of forty cents q
pound for cotton, basis middling, is the low
est figure at which farmers can sell their COT
ton and obtain the cost of production. Surel!
those who produce should not be asked to
make a greater sacrifice than the loss OF all
profit" These estimates we take 1t, are
based upon extensive and accurate observa~
H.
when one considers the extraordinary costs
of the labor and materials with which the
present crop was produced and the ha2ards
which have beset it from seed-time to haF-
vest. None but the widely and exactly in
formed can safely venture an opinion as tn
just what is fair price, but assuredly there
is no contention that the one now prevailing
is so. Nor can it be expected that the CON-
mon interests of the South (nor ultimately
those of the country as whole) will pros
per if the thousands of farmers whose energy
and capital and hope are invested in this
cotton crop, do not receive in return the
equivalent of at least living wage.
1t is of the utmost Importance, therefore
to business, as we'll as to agriculture, that
every feasible and rightful means be en-
ployed to prevent the dumping of large guam
titles of cotton on an already depressed mar.
ket. The suggestions of the Atlanta confer
ence> touching this point are well considered,
and il generally carried out will constitute a
saving course of action.
eve urge the farmers to store their
cotton, and If money is needed to meet
their pressing obligations we advise
them to negotiate loans with their local
banks. using warehouse receipts as COL
lateral security, based upon eighty per
cent of the market value of the staple.
as instructed by the Federal Reserve
banks.
eve urge the people in the cotton
growing States, for their own protection
to cooperate in preventing the cotton
crop from being placed upon the market
:aster than the manufacturers can alb
- it: and at prices less than the cost
of production"
Without liberal co-working among those
concerned this policy will not yield the de-
sired results; farmers, merchants and bank
ers all must do their part, and loyal public
sentiment must reinforce them. But surely
there will be no Sinking where it is so OBJ
viously to the common interests that the
grower sell only enough cotton to meet
pressing obligations" such as supply bills
and current bank loans already outstanding.
which he cannot meet by other means. Hav
ing adjusted such accounts, he should store
the remainder of his crop in safe ware
house until the market reaches price level
consistent with his rights under the natural
law of supply and demand. "o "". "'
That credit accommodations for this DUR
pose should be provided as amply as the re-
sources of banking and mercantile houses
Will permit, is too plain for argument The
fact must be faced however, that such &C
commodations would be far more adequate
To-Day II more State banks held membership
IN the Federal Reserve system; for then the
demands which now center upon the larger
oanks' whose credit facilities already may
De taxed, would be distributed much to the
advantage of all concerned and particularly
20 those of rural districts and small towns
Ihls Is matter to be remembered and acted
upon IN the light of present experience Mean
Wnlle, everything possible and practicable
snould De done to serve the imperative needs
of the hour ON
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