Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-12-18


the farmers. so per cent of it
spun, and So per cent Of the
year to come.
If the trade requires the spin
ming of 100000 bales Guc;ng
those remaining seven mCntEs
las it has in the past where will
it come from?
The best authorities say such
an amount of cotton will not eX-
list.
Of this seasons crop, only g.
100000 bales will be in the hands
of farmers; there VIII be a sur
plus over spinning of 100000
bales in na1ds of mills and ncer.
chants, and tire normal need for
the seven months will be 7,000,-
900 bales.
1t is not the ru:port OF this
discussion to guess what the
price of cotton Will be- The pur-
port is to show that the only
way the farmers can safely and
fairly sell their cotton and get
a decent profit out Of it is TO
cease to dump i, and cease to
guess at the probable course Of
prices, and to sell, through CO.
operative associat tons, steadily
during twelve months, feeding
the cotton to the spinners as
they need it, obtaining an aver.
age price in the course of a year,
this price to be fixed by the in
eXOrable reaction of demand on
supply.
Those farmers who sold 35 per
cent of the American cotton crop
in three months stabbed the law
of supply and demand in the vi.
tails. There was consumptive de.
mand for only 100000 bales.
They bid against each other in
furnishing a supply of 100000.
1t is not strange then that cot
ton which was worth $18S a bale
on December 1 had brought them
an average Of only $135. There
was a consumptive need of L.
O00,OOO bales in November, and
producers bid against each 9TH
err and kept the price from at
tanning true level by furnishing
supply of two bales to every
one needed. There will be con-
sumptive demand this month for
100000 bales and if thew fol.
low the ten-year average pro.
ducers will supply 1 400 900 bales
to the trade.
Thus it is that the cotton
farmers selling two bales when
the mills need one, is his own
worst enemy. He has never OBJ
tanned the profits that were his
for the taking. True, he never
mad the opportunity up to the
past eighteen months. Till
then he was forced to go it alone,
competing with his neighbor in
one of the most highly special
lied businesses in the world
that of selling cotton.
At times he has been advised
and ill-advised, as thousands
know from bitter experience-tu
hold cotton"
That is buncombe, for several
reasons
The first is that producers of
~ to 80 per cent of the crop are
financially unable to hold. Thew
nave mortgages on their crop.
they have landlords to satisfy,
they have debts to pay. Left to
thelr own resources, you might
as we'll say to them, Get rich"
as to say, Hold cotton"
Another reason why it is tom.
myrot to tell them to hold is thar
there is no man in the wide. wide
world who knows what price the
farmer should hold for. There is
no set OF men who can know. The
kllllng OF a no-account duke in
the Balkans will turn the world
upside down. An inspired idiot
with a bunch to wear oVeralls in
stead of clothes will precipitate a
situation that will cause cotton
to jump 8 cents on tho theory
that everybody will buy overaus,
and then put cotton on the soapy
chutes from 43 cents to u cent.
on the theory that nobody will
ever again buy anything.
Look at the chart. Cotton was
1855 cents on December l. Ten
days later it was 395 points
down. Why did it fall $685.
bale and then in two days rise
Sl2.75? A lot of opinions have
oeen printed but if any one of
them or any set of them repre-
sent exact knowledge, the fact is
not demonstrable. Who could
nave predicted such gyrations?
Who then is capable of advising
a farmer what price he should
hold for? Or where is the farm
er who IS capable of deciding the
question for himself?
Suppose Farmer Jones, highly
intelligent and we'll informed of
the impending shortage, believes
cotton will sell at forty cents,
and determines in October to
hold for that price. Suppose
further that he has notes m nav