The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-04-22

elgnC nunQreQ million uOlidlS. ooseo
on the values of July option, 1920,
/ just previous to the harvesting of this
crop, that same number of bales had
value of two billion three hundred
million dollars (s2,S00,000,O ,OO0), or
shrinkage in anticipated value of one
billion five hundred million dollars
(s1,5OO,0OO,000). These statistics
are given merely to show the impor-
j tance of cotton as a commercial asset
of this country, and therefore how
necessary it is that the industry be
properly handled and the financing
done along intelligent, broad-visioned
lines.
Whether this extraordinary depre-
citation can be chiefly attributed to
the Decentralization of European ex-
changes or to the widespread wave
of economy which suddenly seized
upon the people, accentuated by an
apparently determined effort on the
part of the government to force de-
fation, it is, difficult to say, but the
fact remains that the decline in val
ues has taken place, and that not only
did the producer fail to realize his an
ticipated profit, but the actual cost
of production was far from returned
by the present prevailing prices,
forcing unavoidable losses upon all
classes and all types of institutions,
with consequent lowering of the pur-
chasing power Of that part Of the
United States known as the cotton,
states"
The very basis of commerce is ex-
change. If every man produced from
day to day just so much as was need
ed for his days consumption there
would, of course, be nothing to ex-
change; in other words, there would
be no commerce.
The agency devised by modern civ
ilization to take the place OF the
primitive exchange is represented by
purchasing power, the ability to buy.
Increase or decrease this power and
by Just SO much, does business pros
Der er suffer. ''No man will volun-
tarily sow if he cannot reap" 1t
therefore becomes our duty as bank
ers to exert every sound influence
that the farming interests may be
properly advised.
The suggestion that the cotton
acreage be decreased is not lafged
with any desire to initiate the price
of such a worldwide necessity. .5oH
is very necessary that the mind. OF
the people be disabused Of this pre-
vailing error, as it is important to
form a correct Judgment as to why
such. a course is essential. y4,sao.l
! With the production of American
cotton, Is millions for the season
|1920-21 and the very large carryover
from August l, 1920, the supply
could be figured conservatively at 18
millions of bales with an estimated
consumption of II millions. It is
therefore evident that with this pros
pective carry over Of seven millions
and a. normal production OF say IL
millions for Sthe next season, there
would result supply of 20 million
bales for 1922 against a probable
demand of IL millions, admitting I'M
proved conditions.
This would necessarily depress
prices below the cost of production
under the most favorable conditions:
FIt would mean that the cotton farmer
would be called upon to lend his time
land capital and every effort with the
practical certainty Of adding to. heavy
losses already incurred.
Therefore it is economically un-
sound to urge production, whether
Bit be from the soil or factory, when
there is already ample supply to sat
| isfy the demand. The country IN
fact the world, is at present in need
| of every productive effort, but along
careful, intelligent lines. Overpro-
durtion is wasted effort with conse-
quent dire results.
ssThe tiller of a hundred fields can
eat no more, the proprietor of a cloth
factory can wear no more and the
owner of a coal mine can sit by no
hotter fire than his neighbors." The
! minutest excess or deficiency in the
supply of any article Of human want
produces a proportionate effect onthe
! exchange or buying power of all other
articles. If, as consequence OF lg-
norance or lack of forethought or i'll
advice, this inviolate economic pfan-
,;nlo of r,nnlx, apH demand be made