Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1921-01-05
Cotton Will Advance Credit
Man Predicts.
New York Letter

Z Man Predicts.
New York Letter
Returning from trip through sew
eral states in the South, j. H. Ire
goe, secretary-treasurer of Nation
al Association of Credit Men," which
is composed of $4,000, manufactur-
ers, wholesalers and bankers, last
night issued the following impress
sions of business conditions in the va
rious cities visited:
"Various complex causes must be
considered in order to interpret pro-
perly the economic conditions in the
South. Collections and merchandising
have been badly affected, producing
distress and uncertainty to those
whose credits are in large measure,
or entirely, confined to the cotton
growing section of the South. Fun
damentally, the staple must be reck-
oned with as one Of the chief ex-
ports of the nation. Our own spin
dies cannot, absorb more than one
half of the normal product, and mar
kets for the balance must therefore
be found abroad. Whenever exports
are affected by industrial or political
conditions, there is usually reac-
ton on the prices Of staples.
1920 Result Shocked Grower.
.High prices, together with an ex-
cellent crop in 1919, brought pros
perity to the planter, the landowner
and the merchant. We are inclined to
believe that good portion of the
large profits realized was applied to
the payment of mortgages, to the IN
stalling of improvements and some
set aside as savings. With the lack
of thrift, which has been too great
a failing of the cotton growers a
good part of the profits of the pros
porous years was expended in lux
urie.s. 1t was but natural to expect
bumper crop in 1920. Expectations
were realized.But the crop came up
on the market when prices were de-
clining, when exchanges were IN a
disordered condition, and there was
swift decline in its immediate mar
ket value. This decline was a shock
to the grower and very different
experience from what he had expect
ed. And, there entered into his soul,
generally speaking, sense Of fear
which was later intensified into
fright. We firmly believe that the
growers are more badly frightened
than hurt.
"The cotton-growing section was
much better prepared to meet this
debacle in price than it would have
been in 1919 or 1918, but the dis
tress is very great. One might be led
to think that the whole section was
hurt beyond recovery. Possibly
one-third of the unsold portion will
be needed for domestic spindles. We
are inclined to believe that prices
are more apt to advance than to de-
cline further.
Tenant Farmer Big Evil.
"One of the chief evils of the cot
ton-growing sections is the, tenant
farmer. Very much more can be ex-
pected of land when it is titled by its
owner, because of his direct inter
est. The tenants are too largely with
out financial backing and have little
to fall back upon in the event of the
failure in crops or prices. Nothing
is more needed than the development
of homesteads owned and controlled
by the people attached to the land
and not subject to outside influences.
"In accord with the economic law
that no commodity can be sold for a
very long period at less than its
cost of production, there will be
much less planting next year unless
the prices rise considerably. Such a
shortening of the crop would natur-
ally tend to raise its prices about nor
NAL. The shortening of the crop
might have been beneficial economic
effects on that section of the country
through diversifcation of crops.
Merchants Feel Situation.
"The merchants in the South are
feeling the situation very tenselly be-
cause of slowed sales and slower clo-
lections. In essentials sales have de-
clined very heavily and there are