Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-10-16
Stab,1;z;ng Cotton Prices

N less than five minutes on last Wednesday
morning cotton lost market value Of
1888 points, which is $40, an important
sum to any Southern farmer. At five minutes
after 10 o'clock, the price of October cotton
in New York City was 1858 cents pound
At 10 minutes after TO- the price was 24.7O
cents.
What was the impulse behind operations
which resulted in great a loss in market
value of the souths leading product?
A government departmental estimate that
on October it appeared there would be pro,
duced> this year 10000 bales less than
seemed likely on September 16.
Some two weeks ago government esti-
mate was published, indicating decrease Of
around 100000 bales in the crop, and this
forecast followed by precipitate rise of
200 points, or $40 bale.
The Journal never INDUCES in the folly of
price predictions. 1t has no special knowl-
edge of the cotton market. Yet, in common
with the rest of the world it has observed
that the price of this commodity, upon which
the commercial structure of the South is
founded so largely is always in state of
flux. The price is never still. Daily fluctu-
atoms may be slight or they may be as re-
markabe as those observed last Wednesday
or the fortnight before, but the price is al
ways changing
It will always be so, for cotton is product
of worldwide consumption and world condi-
tions are always changing. Cotton is plant
OF hazardous growth. The weather is always
changing. Industrial, economic conditions
are always improving or retrograding, Insect
foes one month may be devastating in their
attack month later, they may have been
repulsed and beaten by combination of hot
wide demand or presumption of demand
wakes or wanes, as supply or likelihood rises
or falls, the price will change. 1t can not be
otherwise so long as two and two when added
result in four, and long as business men
buy. as cheapy as possible and sell for the
best obtainable price.
Yet there can be no economic justification
for such violent fluctuations as mark the
daily, even hourly, course of cotton prices
year in and year out. Conditions OF supply
and demand tend to put the price Of cotton
up or down. Yet horde of spectators, be
they bulls or be they bears, aggravate these
normal fluctuations by operations which
greatly increase the rise or the fall.
The result is such fall, rs witnessed
wednesday, when every bale OF cotton in the
world, actual or prospective, was worth 50
less than 1t was worth ten minutes sooner
because forsooth there had been q pre-
sumptive decrease in production this year Of
only 10000 bales OF American cotton.
The farmer is the goat of such operations
II we may use the expressive language of the
street. The spinner Is the goat unless he
protect his business by hedging with the
gamblers. The public is the goat. for when
the gamblers wax fat in their manipulations
of necessity OF life. the public always loses
to the extent that producer, manufacturer and
consumer lose.
The farmer wants the price OF his product
stabilized to an honest basis of supply and
demand the spinner wants it so; the public
wants it So
There are hundreds OF thousands Of cotton
farmers who have -iained the cooperative
~sss7