The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1921-03-10
Analysis os Present situation Causes
tN 49,. Optimism.


ton from As to 13 cents spent their
force or not?" Then follows an ana
lysis of the situation in which some
startling things are shown. Barrett &
Company answer their own query in
what We would term a conservatively
optimistic. or bullish statement.
whichever term one may prefer in
which it is stated that I'VE believe
the present situation gives the wise
investor chance to buy spot cotton
al bargain counter prices"
The factors of a constructive char
acter which are beginning to arrest
themselves are as follows as stated
oy this well known cotton firm.
constructive policy of the new ad-
ministration.
Reduction in Government expend-
itures already planned.
Revised taxation methods and no
excess profit tax.
Lower manufacturing costs through
lower wages and more efficiency on
the part of labor. Nothing could be
more hopeful than the apparent will
lngness of labor to agree to a reason
able wage revision.
Demonstrated soundness of our
pauhlnS SITUATION.
Assurance of drastic curtailment
OF cotton acreage as well as reduction
in the use of fertilizer, the effect of
which will be felt about the time
when the influence of the other fac
tors become operative"
The announcement of Barratt &
Co. also goes on to say that the pes
simistic news which is emanating
from Europe always occurs when sup
plies are large in America and small
in Europe and also that neither the
mills in Europe or the mills in Amer
lea have any reserve stocks and that
cotton is not only selling below the
cost OF production but below the lev
"a OF prices existing before the great
war In Europe. 1t is really a start
ling fact that middling cotton is be-
low the price of July, 1914, low mid
ding Is off over three cents and good
ordinary is off over five cents from
the level of July of July 191.
The Chronicle has for sometime
contended that cotton is utterly and
ridiculously low and that the remedy
that the cotton farmer has is to stop
producing 1T. The world needs the cot
ton all right and, as Barrett & Co.
point out, there is no reserve stocks
held by the mills, but the price has
been hammered down, down until il
has reached the point where ii would
seem that any person looking for in
vestment could find no better one
than buying spot cotton right now
and holding it off the market. South
ern selling, due to pressure of cred
itors on the holders of cotton, has
had tendency to bear the market re-
Gently and 1t is tragedy that some
or the staple must be sold at the low
est point it has reached during the
year. However, we do not believe that
the farmers will be forced to sacrifice
large amount of their crop because
OF this pressure. Certainly we hope
they will not. 1t would be better to
mold the present crop and not plant
any at all in 1921 and some farmers
may do this, though others will find
1t Impractical not to plant any at all
since they have sold out and still owe
debts which must be paid, while many
others who are holding find themsel-
yes pushed by creditors and if they
sell the present crop, they will be able
To pay only SO to 60 per cent of their
debts and they must make at least
small amount of cotton this year
10 procure money to make up the de-
ficit
If the acreage is reduced one half,
as we hope it Will be, then a good
price for the 1921 crop is assured.
Certainly no one will dispute the
fact that in this section there will be
the most drastic cut in the history for
the lack Of fertilizer, and the lack of
money with which to finance a years
crop will act as a deterrent that can
not be overcome.
The Chronicle has believed all
along that towards planting time the
price will improve considerably, and
very greatly, If the determination
to cut acreage Is carried into effect.
we are hopeful that a new admins
tration and a new Federal Reserve
Board will also help. If we are about
to come out of the trouble, If We are
on the eve Of coming out of the
slough OF despond, then it would be
great pity II the farmers who have
held cotton so long and who are so
sorely pressed may not receive the
benefit of the general revival To the
farmer who has cotton and owes but
little If any money, We would say
mold your present crop and buy any
cotton offered. IL you can finance 1t,
and plant none at all. In this way you
Will give yourself and the south the
most practical aid you can render.
The South has been hit hard, but
she will recover, Is recovering even
now. for when she directs her ener-
gies to the raising of food stuffs that
will make her independent of the
west she can indeed make cotton her
surplus and her recovery will be