Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-05-10
SOUTHERN FARMERS WILL
WEATHER STORM IN END
Tho Atlanta Journal News Bureau,
623 Riggs Building.
BY THEODORE TIEGER.

statement covering the agricultural
outlook in the south. While condi-
lions still remain unsatisfactory,
says Mr.. Mclean, in brief, there is a
way out if bankers, exporters and
business men will do their part and
not expect the producer and the man
who tills the soil to do everything.
Eugene Meyer, Jr., managing d.
rector of the war finance corporation,
and Mr.. MCLEAN, will go to New
York Monday to meet with the COM
mittee named at the Atlanta confer
enceS to work out a system of fur
Their financial assistance for agricul-
ture and the opening up of the export
markets. Discussing the cotton sit
uation here today, Mr.. Mclean eSti-
mated that, from reports received by
him and from personal observation
this years cotton crops will be at
least 80 per cent below that of last
year, This reduction includes vol
untary cuts in acreage and fertilizer
and the diminution that will be due
to unfaWorable weather conditions.
Mr.. Mclean said:
"I believe that every financially re-
sponsible American concern that de-
sires to sell cotton abroad, either
upon short-time or longtime credit,
running as long as twelve months,
can be accommodated. At the pres
ent time, therefore, exports Of cotton
are declining, not so much for lack of
credit facilities as for a lack of de-
mand abroad for the cotton. The cot
ton mills of Europe, like those here,
are running on short time and there
is a slack demand for finished goods
everywhere, and the buying power of
Europe is partially paralyzed."
Furnishing Credit
Mr.. Mclean said that commercial
banks and federal reserve banks are
furnishing. credit freely for financing
export bills maturing in ninety days
or less, and the export banks and
war finance corporation are furnish
ing funds for long time credits. Be
lieving that the most pressing prob
lem confronting the cotton farmer is
to supply better system of market
ing, Mr.. Mclean said the following
steps should be taken:
Crop statistics should be made
more reliable to eliminate undue
speculation, with government sys-
tenn of grading and classifying at the
nate.
There should be established a
standard warehouse system, super
vised by the federal and state gov
ernments, as the key to the whole
marketing question.
Cooperative marketing of at least
a part of the crop under the Cali
fornia plan" This, he said, would re-
suit in distribution of losses among
q larger number of owners, reduction
in selling expense, avoidance of ruin
Gus competition, better financial ar
engagements and the sterilization of
contracts in the nature of firm COM
mitmentS.
Mr.. Mclean believes the chief de-
fects in the marketing of cotton at
present include too many opportuni-
ties for speculation to the detriment
n ~ IFlE Il Ia
men, making a wide gap between
producer and consumer; too much
danger of q breakdown in methods of
selling in times of crisis, as at
present.
"The solution Of present and fu-
not be left to the soil cultivators
alone. 1t is the duty of all classes,
bankers, merchants, exporters and
the business population generally, to
contribute to the solution, for agri-
culture is the basis of our prosperity.
Cotton production, of course, is the
basis of prosperity of the south at
present.
Solution Possible
while the present conditions are
admittedly unfavorable and difficult
of solution, they can be solved by
the urageous and intelligent efforts
of our people if they enter on the
task in a determined and united way.
1.-THE price of cotton in the imme-
date future depends to a large ex-
tent upon the reduction in acreage,
the consumption from now on both
here and abroad and the relative car
ry-over at the end of the statistical
year on July 81. Many authorities
who have attempted to estimate the
probable carry-over on July 81, next,
place the number of bales to be car
rled over at about nine million, I
think thAse estimates are too high.
From the best information I can OBJ
bales, exclusive of linters, to be car
ried over will exceed 100000.
"a good deal of the cotton now on
hand is below the grade Of middling
and much Of it is unspinable. The
average number of bales carried over
for the past seven years was approx
lmately three and a half million
bales. The size of the present crop
is of prime Importance in the pres
ent situation. l have had occasion
in the past week to consult with
cotton exporters. bankers and produc-
erS from every cotton state. From
the best information I can obtain,
throughout the cotton belt will be
about 20 per cent below that of last
year.
Fertilizer Reduction
THE average reduction jim fertiliz-
ers in the states which Use fertiliz-
ers, will be about 40 per cent in units
of quantity and much more than that
in units of cost. The season for
preparation and planting so far has
been rather unfavorable. Taking ev-
cry element into consideration, L be-
l1eVe that even under favorable con-
ditions Of cultivation and harvesting
from now on in connection with the
present crop, the reduction in yield
this year as compared with last year
will be at least 80 per cent. If the
people in Europe can soon get back
to hard work and will practice rigid
ECONOMY for g period, conditions will
gradually improve.
"Conditions here will improve as
soon as our surplus cotton begins
to flow freely in the normal channels
of foreign trade. Of course there
are many causes which contribute to
the present stagnation in our foreign
trade and the consequent damming
up of the channels through which
the streams of our commerce in ag-
ricultural products flow in normal
times. But the fundamental cause is
the lack of a real peace settlement
including definite determination of
the amount of reparations which Ger
Europe and the return to work and
relative prosperity of the people
there. which actual peace alone can
bring about, it the sine quo non of
the restoration of business improve
ment.
"Europe's buying power must be
restored before cotton prices can
substantially increase. When the peo-
| pie who took 60 per cent of our raw
cotton before the war begin to buy
we may look for better times. When
these people begin to buy shirts in
stead of darning the old ones or do.
ing without entirely, our cotton will
at least bring the cost of production
| LAS an evidence of this condition