By A. M. Agelasto, Specialist in Cotton Classing, Bureau of Agricul¬ tural Economies; C. B. Doyle, Botanist, Bureau of Plant Industry; G. S. Meloy, Investigator in Cotton Marketing; and O. C. Stine, Agricultural Economist, Bureau of Agricultural Economics. Cotton the Great Crop of the South. 5 HE greatest commercial crop of the United States is cotton. The corn crop exceeds it in total value (Fig. 1), but much the greater part of that crop is consumed on the farms where grown, whereas all of the lint and most of the seed of the cotton crop is sold off the farms. In comparing crop values often only the value of the lint of the cotton is considered. The hay crops and the wheat crop are usually about equal to and sometimes greater in value than the lint of the cotton crop, but, including the value of the cotton seed, the cotton crop stands second only to corn. Although American mills consume about half the crop, the value of the exports of raw cotton usually exceeds that of the exports of any other crop. Cotton is the great crop of the South. It is the chief and often almost the only source of income to a large proportion 323 324 Yearbook of the Department of Agriculture, 1921. Fig. 1.—Note that cotton holds first place in exports hut not in total value of the crop. Only the lint of the cotton is here included in the value of the crop. Adding the value of the seed, cotton would stand second to corn only in total value. of the farmers in the Southern States. It is so important that low prices or any other factor which greatly reduces the profitableness of the crop greatly disturbs the economic life of the Southern States. When the cotton crop is good and brings good prices the South is prosperous. There is a division of labor between the States of the North and those of the South by which the North depends upon the South for cotton clothing or the raw materials out of which to manufacture the clothing and for products of the cotton seed, and the South in turn buys many of the products of farms of the North. It follows, therefore, that when the South is prosperous it furnishes a good market for corn, flour, meat, and dairy products, and that a prosperous North makes a good demand for cotton and cotton products. World Production. Such a large part of the cotton crop is marketed abroad that the prosperity of the South also depends to a consider¬ able extent upon the conditions of the foreign markets for cotton. It is important, therefore, to consider the world’s supply of and demand for cotton. The Cotton Situation. 325 The United States has been for many years the world’s greatest cotton producer. India, China, Egypt, and Brazil are the most important competitive producers. Many other countries produce small amounts of cotton. (See Figs. 2 and 3.) India. Some cotton is grown in nearly all parts of India, but most of it grows in the western half of the country. As in the United States, there is a high degree of specialization in cot- Fig. 2.—From 1891 to 1914 the cotton crops of Egypt, India, and the United States nearly doubled. The total crop of 1914 was the largest ever produced. Last year the crops in Egypt and the United States were the smallest in many years. ton growing in some districts. The area devoted to cotton in India equals about two-thirds of the area planted in the United States, but the low yields per acre return a total crop about one-third as large. The production of India varies con¬ siderably from year to year, with a tendency to increase. The crop of 1919 was the largest yet produced. (See Fig. 2.) Egypt. The cultivable land in Egypt is limited to the Delta and a narrow strip along the Nile, of which nearly one-third is in cotton. The acreage is only about one-twentieth that of the United States, but large yields return a crop about one-tenth as large. The production of Egypt haa declined since 1914 and in 1921 was the lowest in many years. 326 Yearbook of the Department of Agriculture , 19 6 N0llVHVd3He) N01A0D- N0llVUVd3Sd NUOO-jgg s a crops like cowpeas, peanuts, and velvet beans are more Fig. 18.—The periods of slack work come in midsummeir—July and August—and in midwinter—December and January. No crops are grown on which labor can be utilized during these periods of slack work. Of course, in the farthest South winter vegetables can be grown in the slack winter period. Some grass harvest comes in August, but it is not important. The picking season is the limiting period for labor on cotton. At the same time corn should be snapped, oats should be seeded, sweet potatoes dug, and grass harvested. It is not surprising, therefore, that where cotton is a very profitable crop these other crops may not receive much attention. 346 Yearbook of the Department of Agriculture , 1921. important, oats are practically the only small grain grown. This lower part of the Cotton Belt lies almost wholly within the Coastal Plain, where climatic conditions generally are less favorable to the production of small grains than they are farther north. The choice of the large-seeded annual legumes in the southern division of the Cotton Belt tends to be cowpeas in the Mississippi River bottoms and to the east along the up¬ per part of the Coastal Plains, peanuts and velvet beans else¬ where between eastern Texas and southeastern Georgia, and peanuts alone in northeastern North Carolina and southeast¬ ern Virginia. The share of land allotted to these crops in the Coastal Plains of southern Texas is almost negligible. In the northern division of the Cotton Belt, where the small grains are more important, a little land is allotted to cow- peas and peanuts, but very little to velvet beans. General Farm Practices. Time and method of preparing land, of planting, culti¬ vating, picking the cotton, and the cost of preparing it for market vary much in different parts of the South. Prob¬ ably in most cases the causes of the differences are not to be found only in the different customs; there are also physical and economic reasons for the differences. Fig. 19.—One-mule plow in Southeast. The Cotton Situation. 347 Wherever crab grass, Johnson grass, and other weeds grow profusely in the fields the cultivation of cotton re¬ quires from one to three hoeings per season. With one mule a man can plow, chop, and hoe from 10 to 20 acres, from which 5 to 10 bales of cotton are produced, and this is ordinarily all one family can pick. Therefore, one-mule implements are used over the greater portion of the east¬ ern part of the Cotton Belt. In some sections the topog¬ raphy of the land would make the use of larger implements difficult. In the level, black lands of Texas, however, where, Fig. 20. —Two-mule plow in Texas. owing to the smaller amount or absence of crab grass, the hoe work is comparatively small and where transient labor can be obtained to pick the cotton, 4-mule implements are frequently used in preparing the land and 2-mule imple¬ ments in cultivating it. The newest form of cotton cultivation in the United States has developed in the irrigated districts of the South¬ west. Here the essentially distinctive features are level¬ ing the land so that the entire field may be irrigated uni- 348 Yearbook of the Department of Agriculture , 1921. formly and regulating the water so as to produce the de¬ sired results in producing the cotton. Another special kind of culture is used in producing the sea-island cotton of South Carolina and Georgia. Fertilizers. Commercial fertilizers are extensively used in the pro¬ duction of cotton in the Southeastern States. (See Fig. 21.) Comparing Figure 21 with Figure 13, the heaviest use of fertilizers is seen to be on the soils of the Coastal Plains of and Tiedmont of the Carolinas and Georgia. Very little is used west of Alabama. Compare the distribution of expenditures for fertilizers with distribution of cotton production (Fig. 9). North Carolina, South Carolina, and Georgia, and also to a considerable extent upon the soils of the Piedmont of these States. The fertilizers most generally used consist of acid phos¬ phate, kainit, muriate of potash, and nitrate of soda. In many regions the greatest outlay of cash in producing the crop is for the fertilizers. After labor, it is the most im¬ portant factor in the cost of producing cotton in these Eastern States. The Cotton Situation. 349 Cotton Pests. The Boll Weevil. The original home of the boll weevil appears to be the plateau region of Mexico or Central America. Previous to 1892 the insect had spread through much of Mexico. Little is known, however, concerning the extent or rapidity of dispersion. About 1892 the weevil crossed the Rio Grande near Brownsville, Tex. Whether it flew across or was trans¬ ported in some way is not known. By 1894 it had spread to Fig. 22. — Cotton Doll weevil puncturing young flower bud. (Natural size.) half a dozen counties in southern Texas. Since 1894 it has extended its range annually from 40 to 160 miles, although in several instances the winter conditions have been such as to cause a decrease in the infested area. (See Fig. 23.) Outside of the United States the boll weevil is known to occur throughout the larger portion of Mexico and southward to Guatemala and Costa Rica. It is known to occur also in the eastern half of Cuba. In the newly invaded region of the Cotton Belt the loss from boll-weevil damage may run as high as 50 per cent or more of the crop and invariably creates a condition border¬ ing on panic among cotton planters. Under such conditions diversified farming and animal husbandry receive a powerful impetus. As time passes, however, and the planters learn the proper methods of raising cotton under boll-weevil con- 350 Yearbook of the Department of Agriculture , 1921 Fig. 23.—In 1892 the boll weevil crossed the Rio Grande from Mexico and occupied an insignificant area in the extreme southern tip of Texas. Note this area, indicated by the short line and the figures 1892. The map shows the subsequent spread of the weevil year by year. The Cotton Situation. 351 ditions, a considerable reduction of the loss incident to the presence of the weevil is apparent. The actual damage done by the boll weevil varies greatly from year to year. A very mild winter is invariably fol¬ lowed by a heavy weevil infestation during the following summer. Excessive rainfall during the summer months is also conducive to greater weevil activity. In prairie regions where the insect obtains little or no protection through the winter, it never becomes so numerous as in other quarters where conditions favorable for hibernation are found. The Bureau of Crop Estimates of this department in the fall of 1920 estimated the average annual loss for the last four years to be about $300,000,000. Hibernation takes place in the adult stage. After frost in the fall the last surviving generation of adults seek such shelter as may be found under old cotton stalks and dead grass, or in near-by woods. In regions where Spanish moss is abundant, this material provides a favorite place for the weevil to pass the winter. An average of about 6 per cent of the weevils entering hibernation in the fall survive the winter. A very cold winter will reduce the number that will survive, and a very mild winter will augment it. In the spring the survivors emerge from hibernation, breed, and thus start another generation. Several generations are pro¬ duced each year, each much more numerous than the last preceding. The period from generation to generation is about 25 days. The boll weevil can not be eradicated, but certain measures may be taken which, under ordinary circumstances, will con¬ trol it to the extent that a profitable crop of cotton may be raised. During comparatively recent years a system of boll-weevil control by the use of calcium arsenate in dry-dust form has been developed. It has been thoroughly tested for the last seven years and has proved to be fairly successful. Special¬ ized treatment of the plants with this arsenical is necessary for successful control. Publications giving details of this treatment are issued by the Bureau of Entomology. In addition to the use of poison, certain other measures may be taken to reduce weevil damage. Fall destruction of the 352 Yearbook of the Department of Agriculture , 1921. cotton plants, either by burning or by plowing under, de¬ stroys the possible hibernating places of the weevil in the fields. If it ean be done before the first killing frost great numbers of weevils will be destroyed. The use of an early maturing variety of cotton is impor¬ tant. Likewise the seed should be planted as early in the spring as possible without risk of damage from frost. The object of this is to get the crop well along before the weevils have become nu¬ merous enough to be destructive. The Pink Bollworm Fig. 24.— Pink bollworm. Adult, larva, pupa, and egg. (Enlarged.) The pink boll¬ worm has been known in other countries as a de¬ structive cotton pest since the year 1842, at which time an English entomo 1 ogist called attention to its depredations in India. It was first noted in Egypt in 1911. In the same year the pest was introduced into Mexico, evidently in two importations of cotton seed from Egypt. The fact of its establishment in Mexico did not become known to our au¬ thorities until 1916. An embargo upon Mexican cotton seed was declared immediately, but prior to this order large quan¬ tities of seed were shipped to certain oil mills in Texas for grinding. On September 10, 1917, the first infestation on American soil was found in a cotton field at Hearne, Tex. The Hearne district was then made a cotton-free zone— that is, no cotton was grown in the district—and was so maintained for three years. This district is now believed to be entirely free from the pest, demonstrating what ma} T be accomplished where adequate control is maintained for a The Cotton Situation. 353 . period of years. Other areas that have been found infested are indicated on the map (Fig. 25). The damage which might result from the uncontrolled infestation of the Cotton Belt of the United States by the pink bollworm can be estimated only by the damage done elsewhere, as so far none of the outbreaks in this country have been allowed to go entirely uncontrolled. In November, 1920, a commission organized by the Texas Chamber of Commerce, after a careful investigation in the Laguna dis¬ trict of Mexico, where the insect has been allowed to run its natural course, submitted a report indicating a loss of at Fig. 25.—The pink bollworm was discovered in certain very limited areas in Texas in 1917 and in Louisiana during the winter of 1919-20. The pest has apparently been stamped out in Louisiana, and the actual infestation in Texas is greatly reduced. least 50 per cent of the cotton crop of 1920 of that district due to the pink bollworm. As a matter of fact the pink bollworm is probably the most serious single cotton pest of the world. Its potential danger is greatly enhanced by the habit of the insect in the larval stage of entering the cotton seed and remaining there for several months of the year. By reason of this habit the pest is easily transported to any part of the globe where cotton seed is carried. The only chance of exterminating this pest is by the en¬ forcement for a period of years of noncotton zones for the 5689°—22-3 354 Yearbook of the Department of Agriculture , 1921. invaded areas, and any attempt at control which permits the continuation of the growth of cotton in such areas will be followed by the inevitable increase of the pest and its ulti¬ mate spread throughout the South. Perhaps the most de¬ termined fight which any nation has ever waged for the eradication of a single insect species within its borders has been carried on since the discovery of the pink bollworm in Texas, and the end is not yet. The Cotton Bollworm. Some doubt exists whether the cotton bollworm is a native species or came originally from some other country. At any rate, long before the advent of the boll weevil, it was one of the oldest, most widely distributed, and most de¬ structive of injurious insects. It is a general feeder, at¬ tacking a great many wild and cultivated plants other than cotton. A number of years ago the annual loss to the cotton crop caused by this pest was estimated at $8,500,000. The dam¬ age, however, is somewhat sporadic, being worse in some years than in others, and is likely to be very uneven over the Cotton Belt in any one year. The insect passes the winter in the soil in one of the immature stages. Fall or winter plowing is therefore ad¬ vantageous in its control. In fact the same methods of control advocated for the boll weevil are applicable to this species. If calcium arsenate is used for the weevil, this should be sufficient for the control of the bollworm. The Cotton Leafworm. The cotton leafworm has been known to cotton planters in the United States since 1793. It is unique in that it does not spend the winter in this country. It is a native of tropical regions south of the United States, and in some years does not appear here in destructive numbers. At other times the adult moths fly northward, reaching our Cotton Belt fairly early in the season, and there lay eggs for another generation. This soon appears as the familiar defoliating worm At the end of the season, when cold weather sets in, all stages of the insect within our borders succumb to climatic conditions. The species is easily controlled by the application of cal¬ cium arsenate as for the boll weevil. The Cotton Situation . 355 Cotton Diseases in the United States. Several important diseases attack the cotton crop and cause losses which in 1920 were estimated by the Plant Dis¬ ease Survey of the United States Department of Agriculture at over 13 per cent of the total production. Cotton Wilt. Cotton wilt is a disease which causes stunting, wilting, and death of the entire plant. It is due to a fungus, Fusarium, Fig. 26. — Four important diseases of cotton. A, An eelworm bores into cotton roots and causes rootknot. B, The angular leaf spot produces dead areas on the leaves and rotting of the bolls. £, The wilt disease stunts the plants and causes blackening of the inside of the stalks. D, This boll rot is due to anthracnose. 356 Yearbook of the Department of Agriculture , 1921. which enters the roots and plugs the water vessels. This parasite remains indefinitely in the soil, so that infested fields cannot be planted to the ordinary kinds of cotton. Resistant varieties bred by the Department of Agriculture have come into general use, however, and constitute an effective remedy for wilt. This trouble is widely distributed in the sandy soils of the coastal plain, from southern Virginia and North Carolina to Arkansas and eastern Texas, and is occasionally met in the Piedmont and other districts. (See Fig. 26 .) Texas Root-Rot. Texas root-rot is due to another serious soil-infesting fungus, which occurs from Texas and Arkansas westward, principally on the black waxy or heavier types of soils. This causes a wilting of cotton over large areas in midsummer and constitutes a serious problem, as alfalfa, sweet potatoes, many fruits, and other crops are also susceptible, and because no thoroughly effective remedy is known. Root-Knot. Root-knot, a disease characterized by abnormal galls or swellings of the roots, is due to a tiny eelworm or nematode. The plants are dwarfed and the yield reduced. Root-knot occurs commonly in association with wilt on the same types of sandy soil. It attacks a very large number of other crops. Its control is based on rotation with immune crops or varie¬ ties, involving a readjustment of crop rotation. Rust. Rust is a name commonly used for a trouble marked by the early defoliation and premature death of cotton on soils lacking in vegetable matter and potash or poorly drained. It occurs throughout the Cotton Belt and causes large losses annually. The trouble is controllable by good farming methods, particularly by the use of potash fertilizers, stable manure, or green manuring, and by drainage. Anthracnose Anthracnose is a fungous disease of the cotton plant spread through the use of infected seed. It may cause a damping- off of the young seedlings and some injury to the plant, but The Cotton Situation. 357 is most harmful as a cause of boll rot in wet weather. An- thracnose occurs to a greater or less extent over the entire Cotton Belt. It may be controlled by crop rotation and the use of disease-free seed. Angular Leaf-Spot. Angular leaf-spot, or bacterial blight, can be found in nearly every cotton field throughout the Cotton Belt as a leaf-spot, stem blight, and boll rot; but Upland cotton is quite resistant to it, and the losses are therefore not as great as in Egyptian cotton, which is very susceptible. The most effective method of control combines the use of disease-free seed with crop rotation. All of these diseases are described more fully in Farmers’ Bulletin 1187. Cost of Production. The problem of making ends meet has been especially serious for cotton growers in 1920 and 1921. Expenses have been high and prices low. Relief has been sought in efforts to enhance the prices to producers by various methods without marked success. Since the prices for each crop are determined after production and without regard to costs, farmers must attempt to forecast prices and to adjust op r erations so as to produce at a cost which will return a profit at the price for which the cotton will sell. Some farmers may not find it possible to reduce their costs low enough to meet prospective low prices for cotton, but may be able to produce something else with profit. In any case a knowl¬ edge of costs may be helpful to a farmer in determining how much cotton he should try to produce and how much he may profitably expend in producing it. A grower who knows his own actual cost of production, and has average or standard figures to compare with his own, is in a fair way to stop small leaks in his expenses and to reinforce those features of his practice in which he has an advantage. To assist cotton growers in establishing reasonable aver¬ ages and working standards and to assemble cost informa¬ tion, which individuals acquire only slowly, the Office of Farm Management and Farm Economics undertook coihpre- 358 Yearbook of the Department of Agriculture , 19*21. hensive studies of the cost of producing cotton. (See Fig. 27.) The first of these was made for the crop of 1918, in 10 representative counties in 4 States, the actual cost of producing cotton in 1918 being worked out for 842 farms. (See Bulletin 896, U. S. Dept, of Agriculture.) A similar study was made for the crop grown in 1919, the results of which are summarized in the charts on pages following. Fig. 27. —Location of surveys and cost of production studies in the Cotton Belt. The first of these was made for the crop of 1918 in 10 representative counties in 4 States. The results of the surveys made in 1919 are summarized in charts that follow. Variation in Cost of Production. A farmer who is keeping his own records and comparing with others must recognize the fact that costs necessarily vary from farm to farm, as well as from one region to an¬ other. This is due to variations in the character of pro¬ ducers themselves, as well as in the character of the land and of the methods employed in growing the crop. The variation in the net cost of lint cotton per pound on 783 farms in 1919 (Fig. 28), illustrates the wide range of costs. The Cotton Situation. 359 cent, was produced at a cost up to 50 cents per pound. 360 Yearbook of the Department of Agriculture , 19%1. It costs more to produce cotton in some regions than in others. The net cost per acre and the net cost per pound of lint in 1919 are shown in Figure 29 for each of 11 typical Cotton Belt counties. The average yields per acre reported in each case are shown in a column to the right of the chart. It will be noted that high cost per acre with good yields may result in low cost per pound, and low cost per acre with ordinary or poor yields in high cost per pound. In fact, judicious expenditures for fertilizer, good seed, good care of the crop, or a combination of them, pays. In any year much depends upon the seasonal weather. The 1919 crop was practically a failure in three of the counties surveyed. Fig. 29. — Variations both in the cost per acre and in the yield per acre cause variations in the net cost per pound of lint. The average acre in Anderson County cultivated at the high^fet cost in 1919 produced the highest average yield at the lowest cost per pound. It is not always the greater the cost the higher the yield. Note Lee County, Ark. The distribution of costs differs with the practice, as is shown in Figure 30 for several of the more important factors. Thus labor per acre is relatively low in Ellis County, Tex., where the fields are large and level enough to permit the use of two horses and riding cultivators instead of a man to each mule. In the South Carolina and Georgia counties the use of fertilizer was very general and liberal, while in Ellis County, Tex., no fertilizer was used on cotton, and only one of the farms in Lee County, Ark., reported use of fer¬ tilizer. The value of the land, use cost, or rent of land is The Cotton Situation , 361 COTTON COST OF PRODUCTION TOGETHER WITH VALUES OF FARM PROPERTY AND FARM INCOMES, 1919 AS REPORTED BY 7B3 FARMERS IN 11 COUNTIES ( THE AREAS ARE ARRANGED BY TOTAL COST PER ACRE. THE HIGHEST AT THE TOP ) MAN LABOR AREAS SURVEYED ANDERSON CO.. S.C. MARSHALL CO- ALA. BARNWELL CO, S.C. GREENE CO, GA. LEE CO, ARK. LAUDERDALE CO, ALA MITCHELL CO, GA MONROE CO, MISS. LAURENS CO, GA ELLIS CO, TEX. RUSH CO,TEA HORSE AND MULE LABOR AREAS SURVEYED ANDERSON CO, S.C. MARSHALL CO, ALA. BARNWELL CO, S.C GREENE CO, GA. LEE CO, ARK LAUDERDALE CO, ALA MITCHELL CO. GA MONROE CO, MISS. LAURENS CO, GA. ELLIS CO, TEX. RUSH CO, TEX. HOURS PER ACRE COMMERCIAL FERTILIZER USED AVERAGE VALUE OF CROP LAND AREAS SURVEYED ANDERSON CO, S.C. MARSHALL CO, ALA BARNWELL CO. S.C GREENE CO, GA LEE CO, ARK LAUDERDALE CO. ALA MITCHELL CO. GA MONROE CO. MISS. LAURENS CO. GA ELLIS CO. TEX. RUSH CO. TEX. m AREAS SURVEYED ANDERSON CO. S.C. MARSHALL CO. ALA BARNWELL C0„ S.C GREENE CO. GA. LEE CO, ARK. LAUDERDALE CO. ALA. MITCHELL CO. GA. MONROE CO, MISS. LAURENS CO. GA. ELLIS CO. TEX. RUSH CO. TEX. DOLLARS PER ACRE AVERAGE TOTAL INVESTMENT FARM INCOMES YIELD OF LINT COTTON AREAS SURVEYED ANDERSON CO, S.C. MARSHALL CO., ALA BARNWELL CO, S.C GREENE CO. GA LEE CO, ARK. LAUDERDALE CO., ALA. MITCHELL CO, GA. MONROE CO.. MISS. LAURENS CO. GA. ELLIS CO., TEX. RUSH CO, TEX. THOUSANDS or DOLLARS AREAS SURVEYED ANDERSON CO. SC. MARSHALL CO, ALA. BARNWELL CO, S.C. GREENE CO, GA. LEE CO. ARK. LAUDERDALE CO. ALA MITCHELL CO. GA. MONROE CO. MISS. LAURENS CO. GA. ELUS CO. TEX. RUSH CO. TEX. HUNDREOS OF DOLLARS AREAS SURVEYED ANDERSON CO. S.C. MARSHALL CO. ALA. BARNWELL CO, S.C GREENE CO. GA. LEE CO. ARK. LAUDERDALE CO.. ALA. MITCHELL CO. GA. MONROE CO. MISS. LAURENS CO. GA. ELUS CO. TEX. RUSH CO TEX. Fig. 30.—Counties are arranged in the order of the total cost per acre, the highest at the top. Note especially the contrast between Anderson County, S. C., and Ellis County, Tex. Cost per acre and yield per acre in Anderson County stands first among all the counties, is second in value of fertilizers used, in value of crop land, and in farm income; whereas Ellis County had next to the lowest yields produced with the smallest amount of iabor, no fertilizer, and gave an average farm income on crop land averaging the highest in value of any of the counties. 362 Yearbook of the Department of Agriculture , 1921. another widely variable item, the lowest values being found in Rush County, Tex., and the highest in Ellis County, Tex. In addition to the average expense of labor, horse labor, fertilizer, and value of land, the chart shows also the value of the total farm capital, the farm income for 1919, and the yield of lint cotton per acre. An Example. As a guide for the use of farmers who wish to determine their actual costs for any season promptly and very closely, Example for figuring costs per acre of cotton and per pound of lint. Items. Figures for Mitchell County, Ga., crop of 1919. Your farm. 1921 1922 Amount. Price. Cost. Amount. Price. Cost. Amount. Price. Cost. Labor: Man. 100 hours.. 48 do.... 1 bushel. $0.30 .25 1.35 1.021 $30.00 12.00 1.35 6.13 Mule. Seed (bushel= 30 pounds).. ' Fertilizer. 292 pounds.. Total of foregoing items (84.4 per cent of operating cost) 1 2 . 49.48 58.63 12.00 Total operating cost(100 percent) Credit seed 300 pounds.. 3.04 Net operating cost per acre. 1. 46.63 .29 4.02 50.65 .32 Net operating cost per pound ($46.63= 159 pounds). Rent of land or in¬ terest on invest¬ ment, per acre.. Total net cost per acre (including rent)._ _ $67.00 6% Total net cost per pound (includ¬ ing rentl_ 1 Price, $42 per ton. 2 Operating costs represent all costs except interest on land. The remaining 15.6 per cent of operating costs is made up of manure, equipment, taxes, insurance, ginning, and overhead. 8 $80 per ton. The Cotton Situation. 363 an example is worked out, using the figures for Mitchell County, Ga., and space is provided for setting down the figures for any individual farm. It is best to use the actual figures, if possible, but even in case no attention has been paid to the time and materials used one can not go very far astray if careful estimates are made by means of comparisons with average or standard figures. In each case the yield of cotton should be estimated as closely as possible, because errors in the yield will make considerable differences in the computa¬ tions of cost per pound. Costs and Prices. Though producers are more or less at the mercy of con¬ sumers with respect to price, they can exercise considerable FARM PRICE OF COTTON AND THE PRICE OF FERTILIZER GEORGIA 1913 1918 AND 1921 Fig. 31.—The cost of fertilizers is a very important item in the cost of produc¬ tion in the South Atlantic States. The data represented here for 1913, 1918, are taken from surveys of Sumter County, Ga. For 1921 prices represent Georgia. 364 Yearbook of the Department of Agriculture , 1921. control over the cost of their product. When prices were going up and the prospects for higher prices were still good costs were voluntarily increased, because it was good judg^ ment to pay higher prices for labor, fertilizer, land, and machinery, if it were necessary in order to produce the cotton. The average cost of the 1918 crop was approxi¬ mately 22 cents a pound, while the average farm price was Fig. 32.—The price of cotton fell to a low point in 1914, rose to high points 1916—1919, and fell to a low point in 1920. Wages and prices of articles farmers huy rose less rapidly in the period of inflation and fell more slowly with deflation. 28.76 cents a pound, or enough to cover the cost of 85 per cent of the crop. Prices were still rising in 1919 and costs averaged 35 cents a pound, which was just about the farm price of 35.36 cents a pound, and half the growers failed to make costs. When the crop of 1920 was planted cotton prices were still high and no particular effort was made to cut expenses. While the crop was growing the price was falling, with the result that the crop produced at a high The Cotton Situation. 365 cost had to be sold at a low price. Some retrenchment was made in 1921, as evidenced by the lower wages paid and the lower prices for materials, but' not enough to offset the combined effect of a good crop, a large hold over, and a stagnant market. The relative changes in the cost of pro¬ duction for the years 1910 to 1921 are indicated in Figure 32, farm wages and the prices of things farmers buy being used as an index of the movement of the cost of producing cotton. Organization for Profitable Production. The cost of producing farm products, the farm income, and the welfare of the farm family and the community are strongly influenced by the enterprises selected and their rela¬ tive magnitudes in the organization of the farm. It has been found that those cotton farmers who in plan¬ ning their cropping systems provide first for sufficient acre¬ ages of corn, small grains, hay, and other feed crops (includ¬ ing among these cowpeas, peanuts, velvet beans, and similar crops planted by themselves and interplanted among rows of other crops), not only to feed pigs, chickens, the farm work stock, and the family cows, but also to build up and maintain soil fertility, are able to produce cotton at low cost, and they get the best returns for land used and capital and labor expended. These farmers usually plan for as many acres of cotton as they can care for properly and har¬ vest early with the available farm equipment and such out¬ side assistance as may be relied upon. Proper care of the crop involves thorough preparatory till¬ age, proper application of fertilizers and manures, thorough cultivation, and thorough and persistent combative measures against the boll weevil and other destructive insects. After providing for farm needs, including fertility, and for such acreages of cotton as can be well cared for, other enterprises may be selected in order to make use of unutilized land and labor. Such enterprises may increase food and feed for sale or for some productive live stock enterprise, but care must be taken that these added enterprises do not seriously compete with cotton in its labor requirements or tend to diminish the fertility of the soil. The choice of crops and groupings will vary according to conditions. For example, in Figure 33 are given the average 366 Yearbook of the Department of Agriculture , 19*21. relative sizes of the crop enterprises on some of the more profitable 1-mule to 6-mule farms in communities in Sumter and Brooks Counties, Ga., in 1913 and 1914. A marked dif¬ ference will be noted in the organization of the two com¬ munities. In the Sumter County community, after making fair provision for the farm needs, the remainder of the land was devoted largely to cotton, the most important commercial enterprise. In the Brooks County community the soil was thinner and it was necessary to pay particular attention to the maintenance of soil fertility, so a system was developed which gave a smaller acreage to cotton and paid particular attention to corn, legumes, feed crops, and hogs. Besides the COTTON PERCENTAGES OF TOTAL CROP LAND IN CERTAIN CROPS AVERAGES OF THE MORE PROFITABLE 1 TO 6 MULE FARMS SUMTER AND BROOKS COUNTIES. GEORGIA PRE-WAR PERIOD IstcROPS COTTON CORN OATS & RYE PEANUTS MISCELLANEOUS 2 ND CR0PS COW PEAS INTERPLANTED BROOKS COUNTY. 1914 AVERAGES FOR 30 OF THE MORE PROFITABLE FARMS 29.6 ACRES OF CROP LAND TO EACH MULE 2 COWS TO EVERY 5 MULES 1 BROOD SOW TO EACH 2 MULES 34 CHICKENS TO EACH FARM 33 ACRES OF CROP LAND TO EACH MULE 4 COWS TO EVERY 3 MULES 2 BROOD SOWS TO EACH MULE 80 CHICKENS TO EACH FARM Fig. 33.—In Sumter County there is much greater specialization in cotton than in Brooks County. In the latter more attention is being given to the growing of crops that will maintain or improve soil fertility, consequently more live stock are kept and more leguminous crops are grown. regular peanut crop, peanuts were planted between the corn rows on about one-third of the corn area. The Sumter County farms carried 2 cows to each 5 mules, while the Brooks County farms carried 4 cows to each 3 mules. The Sumter County farms carried 1 brood sow to each 2 mules, while the Brooks County farms carried 2 brood sows to each mule. Among the important miscellaneous crops on these farms were watermelons, sweet and Irish potatoes, sugar cane, and garden vegetables. It is not intimated that these systems of cropping were the best that these farmers could have devised for their farms or for the communities represented, but they were evidently The Cotton Situation. 367 better than the average in that they yielded comparatively high returns for the use of land, working capital, and labor. Systems of cropping change as conditions change. Figure 34 gives the organization of crop enterprises on the more profitable 1-mule to 6-mule farms in Sumter County five years later, in 1918. The main difference between the 1918 and 1913 systems was a reduction in the percentage of land devoted to cotton in 1918 to better meet boll-weevil invasion and the high cost of fertilizers. The actual and relative number of cows and brood sows was increased. The 30 more profitable Sumter County farms in 1913 spent $1,057 for feed, while the 1918 group spent only $298 for this pur¬ pose. The 1918 system shows a larger planting of legume feed crops to reduce the cost of maintaining the live stock, to utilize land and labor not required by cotton, and also to main¬ tain fertility better. Financing the Cotton Grower. COTTON PERCENTAGES OF TOTAL. CROP LAND IN CERTAIN CROPS AVERAGES OF THE MORE PROFITABLE Ito 6 MULE FARMS SUMTER COUNTY. GEORGIA 1918 15T CROPS COTTON CORN OATS, RYE ANO WHEAT PEANUTS MISCELLANEOUS 2ND CROPS COWPEAS ANO PEANUTS INTERPLANTEO COWPEAS, PEANUTS AND VELVET BEANS PER CENT 20 30 40. AVERAGES 31 ACRES OF CROP LAND TO EACH MULE 1 COW TO EACH 2 MULES I BROOD SOW TO EACH MULE 31 CHICKENS TO EACH FARM Fig. 34.—In 1918 cotton and corn held equal areas in Sumter County. Cowpeias, peanuts, and vel- The production vet beans were planted extensively after the Of cotton in the other crops or interplanted with them. United States rests upon credit to a rather unusual extent compared with most other agricultural products. The chief agencies from which this credit is obtained by the cotton farmer are the bank, the merchant, and in the case of tenants the landowner. In this credit extension the merchant, of course, is essentially an intermediary between the banker and the farmer, while in the case of the tenant the land- owner, by guaranteeing the repayment of the credit ad¬ vanced, also acts as an intermediary, either between the bank and the tenant or the merchant and the tenant,, 368 Yearbook of the Department of Agriculture , 19%1. Merchant credit as a rule is a particularly expensive arid unsatisfactory form of credit, whether extended by the store¬ keeper, the implement dealer, or the cotton factor. The difference between cash prices and time prices usually far exceeds the cost of bank credit needed for the purchase of corresponding amounts of goods. The substitution of direct bank credit for merchant credit is therefore to be recom¬ mended wherever possible. The consolidation of numerous small loans into fewer and larger ones by means of credit associations would result in further economy. It is also to be hoped that the cotton farmer will, to an increasing extent, acquire and maintain his own operating capital and thus reduce the need for production credit and strengthen the security for such credit as is needed. Only in this way can be brought about a credit situation in which an ample supply of capital will be available on terms favorable to the borrower. According to a study made by the Department of Agricul¬ ture in the spring of 1921, the- average prevailing rate of interest on personal and collateral loans to farmers for each of the 10 leading cotton-producing States was as follows: Per cen]t North Carolina___— 6. 23 Tennessee_7. 88 South Carolina_■--— 8. 06 Mississippi____8.11 Louisiana_8. 34 Alabama_8. 46 Georgia_^-8. 94 Texas___9.68 Oklahoma_9. 84 Arkansas-9. 70 In all of these States the actual average interest cost, how¬ ever, was considerably higher than shown by the above figures, because of the prevalent practice among the banks in these States of collecting interest in advance, and of a common but less frequent practice of requiring borrowers to maintain a minimum deposit at the bank while the loan is outstanding. Because of the relatively high percentage of tenancy in the cotton-producing States, the question of security for loans is especially significant. The following table shows the pre¬ vailing forms of security for personal and collateral loans to farmers in the so-called Cotton States. The Cotton Situation. 369 Form of security given for personal and collateral bank, loans to farmers in 10 leading Cotton States; per cent of loans secured by various forms of security. State. Note without indorse¬ ment. Note with one or more indorse¬ ments . Mort¬ gage on live stock. Crop lien. Ware¬ house receipt. Stocks and bonds. Other ways. North Carolina.... 10.5 68.6 1.7 5.2 2.1 7.5 4.4 South Carolina.... 9.1 41.0 13.6 20.2 9.7 4.8 1.6 Georgia. 12.5 50.1 14.5 4.9 10.0 3.5 4.5 Tennessee. 18.1 67.2 5.0 1.5 .8 5.8 1.6 Alabama. 10.4 20.1 31.5 26.1 7.5 2.4 2.0 Mississippi. 12.7 27.0 20.2 15.1 8.0 9.1 7.9 Arkansas. 12.1 37.9 22.7 19.9 3.0 2.2 2.2 Louisiana. 15.5 52.7 12.4 5.2 2.7 9.0 2.5 Oklahoma. 17.2 12.9 49.3 18.1 .7 1.2 .6 Texas. 21.9 18.0 38.1 18.3 1.6 1.1 • 0 Personal notes with one or more indorsements are the prevailing form of security in a large majority of these States. Mortgages on live stock and crop liens come next in importance. Warehouse receipts are as yet seldom used by the farmer, but will no doubt increase in popularity as adequate warehouse systems are established. One of the most common complaints heard with reference to bank loans to farmers from these States, as well as from those in other sections of the country, is that the term is frequently too short to meet the farmer’s credit needs. The prevailing term of such loans may be seen from the follow¬ ing table, based on the study to which reference has already been made: Average term of personal and collateral loans to farmers: Per cent of banks reporting various average terms, March, 1921. State. One to thirty days. One to three months. Three to six months. Six to nine months. Nine to twelve months. More than one year. North Carolina. 28.0 53.7 15.9 2.4 South Carolina .. 12. 5 40.1 40. 8 6.6 Georgia. 3.9 50.3 38.5 7.3 Tennessee. 28.5 45.0 14.6 11.9 Alabama. 4.2 30.5 39.9 25.4 Mississippi. 9. 2_ 31.2 38. 5 19.3 1.8 Arkansas. 7.2 36. 7 45. 9 10. 2 Louisiana. 9.3 37.2 37. 2 16.3 Oklahoma. 0.4 11. 6 49. 6 31. 9 6. 5 Texas. 7.9 52.1 33.0 6.7 .3 5689°—22-4 370 Yearbook of the Department of Agriculture , 1921. Cotton Handling and Marketing. The days of the American homespun are past, and now the entire American cotton crop is produced for the market. The course of the cotton from the producer to the mills de¬ pends on the point of origin, the location of the mills for which it is destined, the means of transportation, and the methods of trading. The price that the producer receives depends not only upon the supply and demand at the con¬ suming points, but also upon the cost or handling from the producer to the mills, the middlemen’s profits, and the ability of the producer to take advantage of the most economical methods of marketing his crop. The process of separating the lint from the seed is known as ginning. This the producer usually has done before he sells, which enables him to dispose of both the seed and the fiber to the best advantage. The producer may sell his cot¬ ton at once or hold it until some future date. He may sell directly to a mill buyer or to some one of the numerous grades of dealers in cotton. Southern cotton mills consume about one-fourth of the American crop, the bulk of which is produced locally in the South Atlantic States. The rest of the crop must be trans¬ ported by rail or water either to northern mills or abroad. The movement of the great American cotton crop therefore necessitates an extensive system of transportation as well as of markets. Short Staple and Long Staple Cottons. The length and the character of the fiber or staple are the most important of the factors that determine the value of cotton. Cottons differing in length and character of fiber require special methods in handling and marketing. Commercially all cotton is divided into two classes—short staple, that of inches and under in length, and long sta¬ ple, cotton 1J inches and over in length of fibers. Cottons, however, having a staple length of 1 T V inches usually com¬ mand a premium over short-staple cottons of J to 1 inch in length of staple. The length and strength of fiber produced in any locality depend on the variety planted, the soil, climatic conditions, and cultural methods. Short staple. —Short-staple cotton is grown in all parts of the Cotton Belt and constitutes the bulk of the American The Cotton Situation. 371 crop, or an average of 92 per cent. The length of the fiber of this cotton varies from three-fourths to 1inches. In parts of the Piedmont region and on the better types of soils the length is often more than an inch, while on the sandy and other poorer soils it may be less than seven-eighths of an inch. On the rich river bottoms and on the black prairie lands of Texas and Oklahoma the cotton grown is usually 1 T V inches in length and has a characteristic strong, hard staple. Long staple .—Upland varieties with fiber to 1J inches long are grown in many parts of the South, the production of some sections being recognized by characteristic differ¬ ences in quality and strength of staple. The bulk of the long-staple upland cotton is produced in the Yazoo-Missis- sippi Delta, the north central section of South Carolina, and the bottom lands of Texas and Arkansas. (See table following:) Comparison of production of long-staple cotton ( 1 £ inches and above in length) with production of short-staple cotton (under 1 £ inches in length) in the United States; estimates 1919 and 1920. State. Bales, thousands, i . e. 000 omitted. Per cent. Under If inches. 1J to 1* inches, inclusive. Over 1£ inches. 1 Under 1| inches. lit to li inches, inclusive. Over 1£ inches. 1 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 Alabama. 711 662 2 1 99.7 99.9 0.3 0.1 Arkansas. 718 947 136 225 30 37 81.2 78.3 15.4 18.6 3.4 3.1 Arizona. .. 21 21 39 82 35.0 20.6 65.0 79.4 California. 45 64 10 3 1 8 80.3 85.3 17.9 4.0 1.8 10.7 Florida. 14 15 2 2 l 87.5 82.8 11.1 12.5 6.1 Georgia. 1,639 1,384 18 27 3 4 98.7 97.8 1.1 1.9 .2 .3 Louisiana. 290 375 7 10 1 2 97.3 96.9 2.4 2.6 .3 .5 Mississippi. 619 612 300 252 42 29 64.4 68.5 31.2 28.2 4.4 3.2 Missouri. 60 71 4 5 1 94.4 92.3 5.6 6.4 1.3 North Carolina.. 817 900 12 10 1 2 98.5 98.7 1.4 1.1 .1 .2 Oklahoma. 937 1,125 77 192 2 4 92.2 85.2 7.6 14.5 .2 .3 South Carolina.. 1,309 1,437 93 144 24 29 91.8 89.3 6.5 8.9 1.7 1.8 Tennessee. 293 312 15 11 2 1 94.5 96.2 4.9 3.5 .6 .3 Texas. 2,916 4,091 177 230 6 5 94.1 94.6 5.7 5.3 .2 .1 All others. 28 27 100.4) 100.0 United States. 10,417 12,049 851 1,112 153 205 91.2 90.2 7.5 8.3 1.3 1.5 1 Including 91,965 running bales of American-Egyptian and 1,725 bales of Sea Island cotton for 1920, reduced to 500-pound bales. 372 Yearbook of the Department of Agriculture , 1921. Sea island. —Sea island is a distinct type of cotton, noted for its length of staple, 1J to 2£ inches, and its strong, very fine, and silky fibers. The sea-island cotton produced on the islands off the coast of South Carolina has the longest and finest staple of any cotton. That grown on the coastal plain of Georgia and north Florida is somewhat shorter and coarser. At present the boll weevil has practically stopped the growing of sea-island cotton in the United States, the crop of 1920 amounting to less than 2,000 bales of 500 pounds each. Recently, however, a new upland variety called Meade has been developed in this section and is replacing the sea- island cotton. Meade cotton has a very fine strong staple If to If inches in length, comparable with sea island. American Egyptian. —The American-Egyptian cotton crop is produced chiefly in the valleys of the Salt, Gila, and Colo¬ rado Rivers of Arizona, and in the Palo Verde, Imperial, and San Joaquin Valleys of California. Practically the en¬ tire crop is of a single variety, known as Pima, which pro¬ duces a staple of from 1J to If inches in length. Ginning. Two types of machines are now in use for separating cotton fibers from the seed on which they grow. They are known as roller and saw gins. The roller gin is the older type. In the roller gin the fibers are caught between a leather-covered roll and a fixed steel bar or blade, while a movable bar knocks the seed loose. The roller gin is especially adapted for use in ginning varieties having slick or smooth seed and long fibers that are easily detached from the seed coat, such as sea island, American Egyptian, and Meade. The output of the roller gin is smaller per day than that of the other type, known as the saw gin. In the saw gin the fibers are caught in the teeth of circular saws and pulled through a slot between metal ribs. The slot is adjusted so as to permit the passage of the fibers but to prevent the passage of the seed, so that the cotton is stripped from the seed, which fall back and out of the way. The saw gin is especially adapted for the ginning of short staples with fuzzy seed and fibers that are tightly attached to the seed coat. While the ginning of cotton is done primarily in order to bale the farmer’s product so that it may be sold, it is the first The Cotton Situation. 373 step in the preparation of the fiber for spinning, and there¬ fore the condition in which the lint comes from the gin has a most important bearing on its future value and is the primary basis for grades on which purchases are made. Some of the factors influencing the grade of cotton as it comes from the gin are the care with which it has been har¬ vested and prepared for ginning, i. e., whether ripe, clean, and dry; second, the condition of the ginning mechanism and the skill of operation, i. e., clean machinery in prime condi¬ tion, operated both as to the feeding and speed with care, taking into consideration the type of the cotton being ginned and its physical condition. Fig. 35.—Cotton gin in Texas. Each wagon holds enough seed cotton to make a bale of lint weighing about 500 pounds. Baling .—As the lint or fiber (or raw cotton) comes from the gin it is put up in packages of different sizes and shapes. The bulk of the American crop, however, is packed into a press box 54 inches long and 27 inches wide and to a depth of about 45 inches. This makes the standard “ flat ” or “ square ” bale, which weighs about 500 pounds. It is cov¬ ered on two sides and on the ends with bagging and is tied with six iron bands. In the western part of the Cotton Belt there are some gins which make bales cylindrical in shape but known as “ round ” bales. These are approximately 35 inches long and 22 inches in diameter, are completely covered with bagging, and weigh about 250 pounds. The sea- 374 Yearbook of the Department of Agriculture , 1921. island cotton produced in South Carolina is put up in bags 7 i feet long and feet in diameter and weigh ap¬ proximately 350 pounds. Compressing. —With the exception of the round bale and the recently devised gin-compressed bale, which is a small square bale and, like the round bale, built up under pressure automatically as the ginning is done, the American cotton bale is of comparatively low density and is not only un¬ wieldy but does not fit into either freight cars or ship holds economically. In order that the maximum number of pounds of cotton may be packed for shipment, square bales are sub¬ jected to a recompression by which the cotton is compacted to a high density and the bale reduced to approximately one- half its original size. At the same time patches are added to cover all sample holes and to make up the usual tare allow¬ ance. Plants for recompressing the bales are usually lo¬ cated at interior markets and railroad concentration points and are known as 66 compresses.” The standard 500-pound square bale as it comes from the gin has a density of only 12 to 15 pounds per cubic foot, and from 30 to 35 of them fill a 36-foot box car. When they are compressed at the ordinary or standard compresses to a density of 22 to 24 pounds per cubic foot, from 65 to 75 bales may be loaded into a car. The u round ” gin-com¬ pressed bale, weighing about 250 pounds, has a density of 32 to 37 pounds per cubic foot, and approximately 200 of them may be packed in a car, equivalent to 100 standard bales. The square gin-compressed bale has a density of about 35 pounds to the cubic foot. At some of the concentration points and ports, such as Houston, Galveston, New Orleans, Mobile, Augusta, and Savannah, there are “ high-density ” compresses, which give the bale a density of 35 pounds or more per cubic foot, which results in a still greater saving of car and cargo space. Custom ginning. —In the early days of the cotton industry the larger plantations owned and operated gins, but with the extension of the industry and the growth of the number of small farms came the establishment of public gins. The efficiency of the public gins has led to the abandonment of practically all of the old plantation gins. Even where plan¬ tation gins still operate they also, as a rule, do custom The Cotton Situation. 375 ginning. Public ginneries are now established in practically every locality where the production of cotton is sufficient to support one. During the season of 1920-21 there were in actual operation 18,440 ginneries, which ginned on an average of 720 bales each. The modern public gin is equipped with pneumatic ele¬ vators and distributors, by which the seed cotton brought in by the growers is sucked up from the wagons through pipes and, after passing through cleaning apparatus, is distributed to the different ginning machines or gin stands, as they are called. (See Fig. 35.) The lint, after it is taken from the seed by the saws, is again caught in a blast of air and con¬ veyed through flues to the condenser and baling press. The seed fall into a trough, through which they are carried either by a screw conveyor or by an air blast to a seed chute or to bins in a seed house. If the grower desires the return of his seed he drives his wagon under the seed chute and receives them as they come from the gin. If, however, he sells the seed to the ginner or to some other agent of the cotton-oil mills, they are delivered to the bins in the seed house and from there transferred in car lots to the oil mills. Public ginners usually make a charge for ginning by the hundred pounds of seed cotton, and an extra charge for the bagging and ties applied to the bales. These charges or tolls vary in the different sections according to the costs involved. They are regulated also to some extent by agreement and by local laws. Selling cotton in the seed .—In a few sections of the Cotton Belt some farmers sell their cotton before it is ginned, or “ in the seed,” as it is known. The practice of selling cotton in the seed is most prevalent in those sections where the cotton-growing industry has only recently developed or where cotton is not very extensively grown. The ginners buy the cotton seed as it is brought in and gin it whenever enough has accumulated for a run. In settling with the producer the average outturn or lint percentage of the community is usually taken as a basis. The ratio of seed to lint is ap¬ proximately 2 to 1, though some of the improved varieties turn out from 35 to 40 per cent of lint. The application of averages therefore often results in not giving the individual farmer the price he deserves. From every angle the practice 376 Yearbook of the Department of Agriculture , 1921. of selling cotton in the seed is most unfortunate, since the producer has no incentive for growing better varieties or for making any effort to improve his grade and is prevented from maintaining the purity of his seed supply. Handling Cotton Seed. As indicated above, about two-thirds of the weight of the cotton, as it is picked and hauled to the gin, is seed. With the exception of such seed as is required for planting, practically all cotton seed now reaches the oil mills, where it is crushed and the oil extracted. The seed is now a valuable part of the cotton crop and is becoming still more valuable as the demand for its products increases. Oil mills .—Cotton seed being bulky, the cost of transporta¬ tion makes long-distance shipments unprofitable; conse¬ quently oil mills have been located in the producing region, generally at points at which the seed can be collected con¬ veniently from the ginneries. In 1920 there were 675 seed¬ crushing oil mills well distributed throughout the Cotton Belt. The four primary products from crushing cotton seed are linters, hulls, cake, and oil. The process of crushing, briefly described, is as follows: The seed first are cleaned of dirt and trash, then passed through a delinting machine, which removes the short lint or fuzz, making what are known as “ linters ”; it is then passed through machines which crush or cut the seed in fine pieces and separate the hulls from the kernels; and finally the oil is expressed from the kernels in hydraulic presses, leaving a residue which is called “ cake ” and which when ground becomes cottonseed meal. In the “ cold-press ” mills the whole seed is crushed and no effort is made to separate hulls from kernels. Warehousing. The warehousing of cotton after ginning is very important economically. Leaving the baled cotton exposed to the weather results in large losses annually from the rotting of the fiber. Such damage is commonly known as “country damage.” The cotton warehouse is a place of shelter and protection from fire and theft; a place for classing and as¬ sorting to meet mill requirements; and finally it is a place The Cotton Situation. 377 Fig. 36.—There are warehouses at many local markets, as well as at the larger concentration points throughout the South, ton is customarily marketed as soon as it is ginned there are comparatively few warehouses, except at concentration 378 Yearbook of the Department of Agriculture , 1921. where cotton may be deposited under conditions which en¬ able the owner to obtain money advance upon it until such time as he may desire to sell. Receipts of responsible ware¬ houses are considered among the best kinds of security. The Federal warehouse act of August, 1916, facilitates the use of warehouse receipts by holders of cotton in financing them¬ selves while holding for favorable market conditions. Warehouses .—Warehouses for storing cotton have been built at many local markets, as well as at the larger con¬ centration points throughout the South. (See Fig. 36.) In Arkansas, Oklahoma, and Texas, where much of the cotton is customarily marketed as soon as it is ginned, and is shipped Fro. 37.—A modern concentration and export warehouse of semislow-burning construction. The wide courts are for receiving from cars and for delivery to the compress in the background. The hose houses are located between the buildings. directly to the mills or exported, there are comparatively few warehouses, except at concentration points where the cotton is held by merchants. The same statement applies generally to Tennessee, Mississippi, and Louisiana. In the Eastern States warehouses are usually accessible to the farmers. Grading Cotton. The value of cotton to the consuming mills is measured not only by the length, strength, and uniformity of the staple but also by its color and by the amount of foreign material that it contains. While in the wild state species of cotton are found with fibers of a variety of colors, the principal varieties of commerce, with the exception of a few, such as the brown Egyptians, are of a creamy or pure white color. The Cotton Situation. 379 Seasonal conditions, such as frosts or excessively damp or rainy weather, stain and discolor cotton. In some sections cotton unduly exposed to the weather after maturing re¬ ceives a bluish cast or becomes mildewed. This condition so frequently occurs in some sections as to lead to the belief that the damage is connected with certain types of soil. The fibers of “blue cotton” are usually weakened. Dirt, sand, broken leaves, and stems become lodged in cotton fibers during storms and long exposure in the field, and when picked and ginned with the cotton reduce its value in proportion to the quantity of such for¬ eign matter present. Standards for grad¬ ing .—There has always been considerable con¬ fusion in the market¬ ing of cotton, due to the fact that nearly every market had its own grades, and these were frequently changed to meet spe¬ cial crop conditions. In order to simplify cotton marketing by making a single set of standard grades, on which quotations and purchases and sales could be based, the United States Depart¬ ment of Agriculture was authorized in the appropriation bill for the fiscal year 1909 to prepare grade standards. Subse¬ quent legislation enlarged these powers and authorized the sale of copies of the Official Cotton Standards to all who de¬ sired them. The United States Official Cotton Standards for grade have now been adopted by the exchanges of practi¬ cally all the leading cotton markets of this country. Ap¬ proximately 2,500 full and fractional copies of the standards have been sold to the American cotton trade. Copies have Fig. 38.—Grading by standards. A full set of white standards consists of 9 boxes, each containing 12 samples of the same grade of cotton. The 12 samples indi¬ cate the range of diversity allowed within the grade. 380 Yearbook of the Department of Agriculture , 19*21 Fig. 39.—A photographic representation of the official cotton standards of the United States of those lengths of staple for which types are available for distribution, each respective length as shown being obtained from the original type bale. The Cotton Situation. 381 also been sold into practically all the foreign markets. (See Fig. 38.) Bolly ootton .—In the- western and northwestern sections of the Cotton Belt large quantities of bolls, more or less matured, are frequently caught by early frosts which kill the plants and arrest the further development of the fibers. Such of these bolls as are not too severely damaged crack open and produce a cotton of poor character, fluffy and soft, and filled with shale, or the finely divided smooth inner surface of the carpel, which adheres closely to the fibers and causes waste during spinning. So much of such cotton has been caught by frosts in recent years that steps have been taken to salvage as much as possible. These frost-opened bolls are gathered and put through machinery which first picks the cotton from the bolls and then gins the cotton. The lint thus obtained is known as “bolly cotton” and brings only a fractional part of the price of well-matured white cotton. Snaps .—Recently still another type of cotton has appeared in the West. It is known as “ snaps,” and its name is sig : nificant of its character. Owing to labor shortages, fields of mature cotton are sometimes left unpicked until late fall or winter. It is then much easier, especially if the weather be cold, to snap the bolls off of the plants than to pick the cotton. The “ picking ” is done later by machinery, and the cotton is then ginned and baled in the usual manner. While this cotton is fully matured, it is likely to be discolored and trashy. Snaps or snapped cotton also brings a lower price than regular cotton, but its spinning value is above that of bolly cotton. Linters. All cultivated varieties of cotton, with the exception of Sea Islands and some Egyptians, produce two types of fibers on their seed coats—a long fiber suitable for spinning and a short, somewhat weaker, fiber usually called fuzz. The long fibers are removed and baled at the gins and constitute the cotton of commerce, while the short fibers, or fuzz, are re¬ moved in a second and more intense ginning known as “ delinting ” or “ cutting ” and constitute what are known as linters. Delinting is generally done at cotton-oil mills as a step in the preparation of the seed for crushing. Linters also contain varying amounts of the long fibers that have escaped 382 Yearbook of the Department of Agriculture , 1921. through the gins without being removed. Linters are packed in bales similar to the ordinary cotton bale and weigh on an average about 500 pounds to the bale. The production of linters has increased from 114,000 bales in 1899-1900 to 440,000 bales in 1920-21. In 1916-17, during the World War, 1,331,000 bales of linters were cut, to be used chiefly in the production of explosives. The annual production of linters during the last 20 years, together with the ratio of linter pro¬ duction to cotton production, is shown in the accompanying table: Annual production of linters. Year. Bales of linters. Per cent of cotton crop. Year. Bales of linters. Per cent of cotton crop. 1899-1900.... 114,000 143,000 166,000 196,000 1.2 1910-11. 398,000 556,000 602,000 629,000 3.2 1900-1901 . 1.4 1911-12. 3.4 1901-2. 1.5 1912-13. 4.2 1902-3. 1.8 1913-14. 4.2 5.3 1903-4. 195,000 245,000 230,000 322,000 268,000 346,000 313,000 1.9 1914-15. 856,000 931,000 1,331,000 1,126,000 929,000 608,000 1904-5. 1.7 1915-16. 8.3 1905-6. 2.0 1916-17. 10.9 1906-7. 2.3 1917-18. 10.0 1907-8. 2.3 1918-19. 7.7 1908-9 2.5 1919-20 .. 5.4 1909-10. 2.9 1920-21. 440,000 3.3 Uses of linters .—During war time linters are used chiefly in the manufacture of explosives, but during peace time the felting quality of linters and the chemical composition of the fibers are utilized in the manufacture of a variety of articles, as shown in the following list: Batting. Wadding. Stuffing material for : Pads. Cushions. Comforts. Horse collars. Mattresses. Upholstery. Absorbent cotton. Mixing with shoddy. Mixing with wool in hat making. Mixing with lamb’s wool for fleece- lined underwear. Felt. Low grade yarns : Lamp and candle wicks. Twine. Rope. Low grade yarns—Continued. Carpets. Cellulose : Writing paper. Guncotton, nitro-cellulose. Pyrocellulose. Smokeless powder. Pyroxylin. Varnishes— Coating for metals. Artificial leather. Weatherproofing. Plastics— Celluloid. Collodion. Varnishes. Artificial silks. Photographic films. The Cotton Situation. 383 Cotton Markets. A cotton market may be defined as a place where a number of men meet to buy and sell cotton. The system begins with the village or town where dealer meets producer and ends with the point where dealer delivers to spinner. The trad¬ ing may be in actual cotton or in contracts for future de¬ livery. The term “ spot cotton ” is used to designate actual cotton on the market, and a “ spot market ” is one dealing Fig. 40.—A large proportion of the cotton crop is annually marketed Sep¬ tember to January, inclusive. This heavy marketing ordinarily depresses the farm price, which rises slowly as the marketing diminishes. Last year (1920-21) deflation, business depression, and a large carry-over of stocks caused the farm price to fall almost continuously from August to May of the following year. in spot or actual cotton. In the future markets the trading is done in contracts to deliver at some future date. A future contract usually calls for 100 bales or approximately 50,000 pounds of cotton to be delivered during a specified future month. Spot markets .—The spot markets are classified, according to their location and their functions in cotton trading, as primary and interior markets. Primary markets are villages and towns where baled cotton is first put on the market and sold by the producer. Cotton buyers go into almost every village and town where a ginnery is to be found. 384 Yearbook of the Department of Agriculture , 1921. The Cotton Situation. 385 Interior markets are large towns and cities where cotton from primary markets is received and sold by primary buy¬ ers to merchants or mill agents. Such markets are usually the points of concentration for grading, compressing, as¬ sembling in commercial lots, and consigning to destination for consumption. Export markets .—The cities along the Atlantic and Gulf coasts where cotton is sold and from which it is exported are called export markets. About one-half of the American cotton crop is exported for consumption in foreign mills. Consuming markets .—Cities or towns in which cotton is purchased for manufacturing are called consuming markets. Boston, New York, and Philadelphia are both export and important consuming markets. Future markets .—There are future cotton markets or ex¬ changes in New Orleans and New York. The importance of these markets is not indicated by their receipts or exports of cotton, as much of the cotton dealt in never reaches these points. New Orleans is both a spot market and a future market, while New York is primarily a future market. Liverpool is the most important foreign future market deal¬ ing in American cotton. There are future exchanges also at Bremen and Havre which deal in American cotton. The classification of all cotton delivered on the New York and New Orleans future exchanges is now done by the United States Department of Agriculture. Marketing and Prices. All of the markets are closely connected through the opera¬ tions of dealers, and the future exchanges stand at the apex of the system, the prices quoted in all the other markets gen¬ erally being based on the future quotations. (See Fig. 42.) When the harvest season begins, contracts covering a large part of the cotton crop have already been made and are being dealt in daily upon the future exchanges. While dealing in futures may be used for speculation, under normal condi¬ tions its chief use is for hedging, a means of insurance against loss and also for the stabilization of prices. The spinner who has made a contract to deliver cotton goods sometime in the future orders cotton from a responsible dealer, who “ hedges ” against a rise in the price of cotton, generally by buying a contract for it upon a future exchange. 5689°—22-5 386 Yearbook of the Department of Agriculture , 1921 1921, the futures were generally above the cash. The Cotton Situation. 387 On the other hand, the dealer who is buying or expects to buy cotton on the primary or other markets may “ hedge ” against a fall in prices by selling a contract for it upon a future exchange at a price sufficient to insure him against loss or even to make a profit. The purchase of cotton in quan¬ tity for any purpose without hedging would be considered such speculation that banks would not finance the deal. Dealers on the future cotton exchanges keep daily watch on the demand for cotton in all the important consuming mar¬ kets and upon the conditions as to production and movement of cotton for the purpose of forecasting prices as far ahead as possible. Their forecasts guide them in their activities in buying and selling contracts for future delivery and the quotations of sales as they are made followed closely by dealers in the actual cotton on all spot markets. Marketing cotton .—Buyers become active in the primary markets as soon as ginning begins. Some cotton is grown under mortgage and is sold promptly in order to meet press¬ ing financial obligations. Where only small quantities of cotton are grown, it is usually sold to the ginner or local merchant in the nearest town or village. Through the center of the Cotton Belt the tenants on plantations, usually having pledged their crops in advance, sell at once to the owners of the plantations, or, subject to the lien, to merchants or buyers. With many producers, however, the time of selling is largely a matter of choice. When cotton is bought in greater quantities than can be moved or consumed at once, the purchaser must bear the expense of storage and risk of loss, and he, therefore, pays the producer a lower price for it. On the other hand, the producer who can hold his crop must consider the expenses of storage, insurance, and interest on money involved in estimating the advantages of holding. It may be that in some cases the buyer can hold at less expense than the farmer and can afford to pay such a price that the farmer would lose by holding. Many successful farmers have adopted the fixed policy of selling a portion of their crop promptly and holding the remainder for sale as conditions and circum¬ stances seem to warrant. The cotton sold under stress and of free choice soon after ginning forms a large percentage of the total crop. (See Fig. 40.) 388 Yearbook of the Department of Agriculture, 1921. It requires some time to assemble the cotton at the large primary and interior markets and to ship it to points of export and of consumption. Dealers move some of it as rapidly as possible, but hold some in storage at interior markets and concentration points so that they may deliver to spinners throughout the year. Spinners, as a rule, do not carry a very large supply of cotton on hand. The op¬ erations of the future exchanges enable dealers through hedging to buy and hold the cotton many months or to ship it a long distance without undue hazard from changes in prices. Prices. —The basis for price quotations upon all the mar¬ kets is the quotation for Middling on the nearest active future month upon the future exchanges. (See Fig. 43.) At each primary market a deduction from the price quota¬ tions must be made to cover expenses of handling and trans¬ portation. If there are many buyers on the market, grad¬ ing may be fairly close and the prices paid close to the limit that will allow a reasonable profit to the buyer. Prices in the large primary and interior markets are de¬ termined as in the smaller primary markets. However, grad¬ ing has become standardized in these markets, and at each market the grades above and below Middling are settled for according to the differences prevailing in that market. The differences in price between Middling and the other grades and the premiums for the longer staples vary from time to time because of special demands or the effects of the season upon the supply of the different grades and lengths of staple. The basis grade in future contracts is Middling and the price stated in the contracts is for that grade. When grades other than Middling are delivered the receiver pays for these grades so much above or below the contract price as the grades delivered are worth. Under the United States cotton futures act certain bona fide spot markets, designated by the Secretary of Agriculture, report daily to the future ex¬ changes in the United States and to the Secretary of Agri¬ culture the prevailing prices for Middling and the other grades “on” and “off” Middling (above or below Mid¬ dling). New Orleans being also a spot market the differences in prices between Middling and the other grades of spot cotton in that market are used in determining the prices of cotton other than Middling when they are delivered on a The Cotton Situation . 389 Fig. 43.—In the period of the recent war the price did not rise as high as in the Civil War period. One reason being that pro¬ duction continued and there was always available a good supply, whereas in the earlier period very little was produced and almost no cotton was available. 390 Yearbook of the Department of Agriculture , 1921. future contract in that market, whereas under the cotton futures act the New York cotton exchange uses the average differences “ on ” or “ off ” Middling as reported by the bona fide spot markets designated by the Secretary of Agriculture. Transportation. On the primary markets the miscellaneous assortments of grades and lengths of staple produced by the growers of cot¬ ton are purchased and forwarded to the interior markets, where they are assorted and assembled into lots, even run¬ ning as to grade and other character, and offered to the pur¬ chasing agencies of the mills. Before forwarding to the mills, however, the cotton is compressed so as to conserve freight and mill storage space and to economize on freight charges. APPROXIMATE DIVISION OF THE LIVERPOOL VALUE OF A BALE OF COTTON ON JULY I. 1913, 1918, 1920, AND 1921. 1913 1918 1920 1921 VALUE AT LIVERPOOL VALUE AT LIVERPOOL VALUE AT LIVERPOOL VALUE AT LIVERPOOL $64.25 $200.50 $199.25 $58.90 Fig. 44.—The farmer’s share of the final market value of a bale of cotton varied greatly from time to time through the late war period. The cost of ocean transportation was large during the war but has shrunken nearly to the prewar share, whereas the rail transportation share has largely increased since the war. Where there are no facilities for compressing the cotton at point of origin railroads accept it and have it compressed in transit. The charge for compressing averages about 12 cents per hundred weight. Additional charges are made for patching. These charges are added to the freight charges and collected by the railroad company. To secure through shipping rates all cotton is shipped to concentration points with reshipment privileges. When the cotton is to be re¬ shipped the owner surrenders his receipts and it is forwarded to destination on the rate quoted from point of origin. The Cotton Situation. 391 The Consumption of the Cotton Crop. Approximately half of the crop is consumed in this coun¬ try and the remainder is exported. In recent years mills in the cotton-growing States have taken more than half of the total quantity remaining in this country for consumption. Linters are mostly consumed at home. The tendencies are to expand the cotton manufacturing industries of the South and to manufacture more and more of the cotton near where it is grown. Statistics and charts showing the annual distribution of the cotton crop of the United States follow. Consumption of cotton in the United States, 1896-97 to 1920-21. [Bales.] Year. United States. All other States. Cotton¬ growing States. 1 Year. United States. All other States. Cotton¬ growing States. 1896-97_ 3,472,398 1909-10_ 4,621,742 2,388,236 2,233,506 1897 98... 3,672,097 1910-11_ 4,498,417 2,249,282 2,249,135 1898-99_ 3,687,253 1911-12_ 5,129,346 2,493,468 2,635,878 1899-1900. . 3,873,165 2,349,997 1,523,168 1912-13_ 5,483,321 2,621,578 2,861,743 1900-1901.. 4,080,287 1913-14_ 5,577,408 2,652,114 2,925,294 1901-02_ 4,187,076 . 1914-15.. .. 5,597,362 3,026,969 2,570,393 1902-03_ 3,980,567 1915-16_ 6,397,613 2,870,085 3,527,528 1903-04_ 4,523,208 ; 1916-17_ 6,788,505 2,900,157 3,888,348 1904_05_ 4,877,465 1917-18_ 6,566,489 2,869,391 3,697,098 1905-06_ 4,909,279 2,535,702 2,373,577 1918-19_ 5, 765,936 2,566,909 3,199,027 1908-07_ 4,984,936 2,573,943 2,410,993 1919-20_ 6,419,734 2,836,815 3,582,919 1907-08_ 4,539,090 2,351,994 2,187,096 1920-21_ 4,892,672 1,895,201 2,997,471 1908-09_ 5,091,534 2,581,321 2,510,213 The statistics given in the above table were compiled from reports of the Bureau of the Census. Those for the period 1896-97 to 1913-14, inclusive, are for the 12 months ending August 31. Those for the period 1914-15 to 1920-21, in¬ clusive, are for the 12 months ending July 31. Those for the years 1896-97 to 1904-5, inclusive, except the year 1899- 1900, are for equivalent 500-pound bales. Those for the year 1899-1900 and for the period 1905-6 to 1920-21, inclusive, are for running bales, except that round bales are counted as half bales and foreign cotton in equivalent 500-pound bales. Linters are included for the years 1896-97 to 1907-8, in¬ clusive, but are excluded for the years 1908-9 to 1920-21, inclusive. TAKEN BY UNITED STATES MILLS 392 Yearbook of the Department of Agriculture , 1921 Z.061 8681 Z.681 9681 8681 *681 8681 » HZZLII 0681 6881 WttM 8881 j— Z.881 pHH 9881 ^■1 8881 *881 SSSffl 8881 i i I « < d in co cv ce. < UJ >- Fio. 45. — The consumption of raw cotton by the mills of the United States increased constantly from 1876 to 1916. The business depres¬ sion last year caused a great reduction in mill consumption. The southern mills now use more than half the amount consumed in the United States. The Cotton Situation . 393 The consumption of linters in the United States, by seasons, for the seasons 1908-9 to 1920-21 is given below. The figures for the seasons 1908-9 to 1913-14, inclusive, are for the 12 months ending August 31. Those for the seasons 1914-15 to 1920-21, inclusive, are for the 12 months ending July 31. Linters consumed. [Bales.] Year. United States. Cotton¬ growing States. All other States. Year. United States. Cotton¬ growing States. All other States. 1908-9. 149,185 43,584 105,601 1915-16_ 880,916 449,602 431,314 1909-10_ 177,211 58,827 118,384 1915-17_ 869,702 446,659 423,043 1910-11_ 206,561 79,352 127,209 1917-18_ 1,118,840 716,954 401,886 1911-12_ 238,237 76,345 161,892 1918-19_ 457,901 291,981 165,920 1912-13_ 303,009 98,775 204,234 1919-20. ... 342,473 131,484 210,989 1913-14_ 307,325 98,121 209,204 1920-21_ 516,307 154,483 361,824 1914-15_ 411,845 166,384 245,461 Supply and distrbution of cotton in the United States. [Linters are included for the years 1905-6 to 1912-13, inclusive, but are excluded for the years 1913-14 to 1920-21.] Year. Supply. Distribution. Produc¬ tion, run¬ ning bales, except round bales counted as half bales. Carry over from previous year. Imports, equivalent 500-pound bales. Exports, running bales, except round bales counted as half bales. Consump¬ tion, run¬ ning bales, except round bales counted as half bales. Stocks on hand at end of year. 1905-6. 10,656,498 1,934,548 133,464 6,763,041 4,909,279 1,349,139 1906-7. 13,097,992 1,349,139 202,733 8,503,265 4,984,936 1,514,567 1907-8. 11,527,833 1,514,567 140,869 7,573,349 4,539,090 1,236,058 1908-9. 13,418,144 1,236,058 165,451 8,574,024 5,240,719 1,483,585 1909-10. 10,350,978 1,483,585 151,395 6,339,028 4,798,953 1,040,040 1910-11. 12,384,248 1,040,040 231,191 7,781,414 4,704,978 1,375,031 1911-12. 16,068,936 1,375,031 229,268 10,681,758 5,367,583 1,776,885 1912-13. 14,159,078 1,776,885 225,460 8,800,966 5,786,330 1,648,438 1913-14. 13,659,167 1,510,606 265,646 8,654,958 5,577,408 1,447,817 1914-15. 15,905,840 1,365,864 363,595 8.322,688 5,597,362 3,936,104 1915-16. 11,068,173 3,936,104 420,995 5,895,672 . 6,397,613 3,139,709 1916-17. 11,363,915 3,139,709 288,486 5,302,848 6,788,505 2,720,173 1917-18. 11,248,242 2,720,173 217,381 4,288,420 6,566,489 3,450,188 1918-19. 11,906,480 3,450,188 197,201 5,592,386 5,765,936 4,286,785 1919-20. 11,325,532 4,286,785 682,911 6,545,326 6,419, 734 3,563,162 1920-21. 13,270,970 3,563,162 226,321 5,673,452 4,892,672 6,590,359 394 Yearbook of the Department of Agriculture , 1921. ANNUAL SUPPLY OF COTTON (including linters) UNITED STATES. CROP YEARS. 1905-1920 BAL'iS <0 |n 00 Cl O — (MCO^iniO^OOOl MILLIONS 0)0)0>o>0)0)0)o5o)0)0>aC>0) ANNUAL DISTRIBUTION OF COTTON (including linters) UNITED STATES. CROP YEARS. 1905-1920 in (0 00 0) o (0 in (0 00 0) o o o O O 0) 01 01 0) 01 01 01 01 01 01 01 01 01 01 01 Fig. 46.—In recent years the carry-over from one crop season to another has been large. The total amount available for the year 1920—21 was greater than for any previous year except 1914-15. Before the war the United States annually exported more cotton than was consumed, but since 1914 exports have been less than home consumption. The Cotton Situation . 395 Supply and distribution of linters in the United States. [Figures for each season are for the 12 months ending Aug. 31, during the season 1905-6 to 1913-14, inclusive, and for the 12 months ending July 31, during the season 1914-15 to 1920-21.] Year. Supply. Distribution. Produc¬ tion, run¬ ning bales, except round bales counted as half bales. Carry over from previous year. Imports, equivalent 500-pound bales. Exports, running bales, except round bales counted as half bales. Consump¬ tion, run¬ ning bales, except round bales counted as half bales. • Stocks on hand at end of year. 1905-6 . 230,497 322,064 268,060 346,126 313,478 397,628 556,276 602,324 631,153 832,401 944,640 1,300,163 1,096,422 910,236 595,093 439,637 1906-7 . 1907-8. 1908-9. 149,185 177,211 206,561 238,237 303,009 307,325 411,845 880,916 869, 702 1.118.840 1909-10 1910-11. . 1911-12. . 1912-13. 137,832 181,584 388,786 263,547 453,659 439.917 1913-14. 137,832 181,584 388,786 263,547 453,659 439,917 868,897 1,009,650 . 259,881 221,875 295,438 436,161 187,704 71,534 53,021 51,132 1914-15 . 1915-16. 1 . 1916-17. 1917-18. . 1918-19 . 457,901 868,897 342,473 1,009,650 516,307 684,298 1 1919-20. 1920-211. i Subject to possible correction. Fig. 47. — Noon hour at a modern southern cotton mill. 396 Yearbook of the Department of Agriculture , 1921. COTTON CONSUMPTION FOREIGN AND DOMESTIC AUG.. 1920-JULY. 1921 COTTON CONSUMPTION (EXCLUDING LINTERS) STATE DOMESTIC FOREIGN TOTAL N.C. 914,377 12,007 926484 Mass 823,400 99,082 922.482 S. C. 766,784 4,776 771460 Ga.. 605,817 8462 614,079 Ala. . 309,646 309,646 N. H. 206,012 14429 220.241 R. I.. 170,826 41,373 212,199 Me.. 146,498 6.667 153,165 N. Y. 129,527 1466 130,793 Va.. 105452 105452 Conn. 83,398 12,009 95,407 Tenn. 74,565 124 74,689 Tei. . 62,617 62,617 Md.. 40421 ' ' 496' 41417 La . . 39427 39.327 N. J. 19,419 11,945 31464 Miss. 31408 31408 Pa . . 22,579 1450 24,429 K,.. 21,303 21403 Ind.. 14,200 12 14412 III. . . 10,555 199 10,754 VI... 9,762 341 10,103 Other 68,898 1,143 70,041 U.S. 4,676,891 215,781 4,892,672 Fig. 48. —The mills in the cotton-growing States took 61 per cent of the total taken by the United States mills. Massachusetts, North Carolina, South Carolina, and Georgia are the leading States. Most of the foreign cotton was taken by the mills of New England. w Cotton Exports. The average annual exports of cotton previous to the late Avar were about 60 per cent of the crop. During the war period the United States consumed the larger proportion of the crop produced. In some years more than one-half the crop was consumed by the mills in this country. The economic depression of last year resulted in a reduction of the mill consumption at home. Exports were also reduced, leaving an unusually large carry over, 6,590,000 bales, or one-half of the production. The movements of cotton through ports and to foreign countries are indicated by the accompanying charts. The The Cotton Situation* 397 Fig. 49.—The predominant position of the United States in the international cotton trade is graphically shown in this ch^rt. 398 Yearhook of the Department of Agriculture , 1921 Note the changes in movements between the pre-war period and last year. Austria-Hungary and Russia were out of the market last year. Only Japan shows enlarged imports. The Cotton Situation. 399 war disturbed cotton movements by making transportation expensive and shutting out from our markets some of the foreign countries that were taking cotton. On the other hand, in Japan there has been a great increase in the manu¬ facture of cotton, and Japan has become one of the most important markets for the raw cotton of the United States. Pig. 51.—The United Kingdom is the best customer of the United States; Germany was second. Japan is becoming one of the principal importers of American cotton. In recent years there has been a very rapid expansion of manufacturing in Japan. Utilization of Cotton Seed. The utilization of the cotton seed has become an important economic factor in the production of cotton. At first plant¬ ers commonly considered all of the seed as waste material, except that used for planting, but as soon as they began to give some attention to maintaining the fertility of their soils they found the seed valuable fertilizing material. Be- for the Civil War experiments were being made in heeding the seed to live stock and crushing it for oil. In 1859 there were seven establishments in the United States engaged in the manufacture of cottonseed products. After the Civil War there was a great demand for fertilizers in the eastern States, of the Cotton Belt, and the cotton seed was almost universally used for this purpose. In 1875 refined cotton¬ seed oil was put on the New Orleans market, and since then 400 Yearbook of the Department , of Agriculture , 19*21. Fig. 52.—The amount of cotton seed produced, of course, varies with the cotton crop. Recently developed valuable uses for the seed products and high prices for the seed have caused an increasing proportion of the Droduction to he crushed. the cottonseed oil industry has developed with remarkable rapidity. Increased demand for the various products of the crushed seed has greatly increased the A’alue of the seed. Deterioration in Quality of the American Cotton Crop. According to the testimony of the cotton trade in Europe as well as in the United States, the quality of the American cotton crop has deteriorated in recent decades. This can be understood when account is taken of the general custom among the American growers of planting many different varieties in the same locality, the crossing of these varieties in the field, mixing the seed at the public gins, and the general use of this ordinary “ gin-run ” seed for planting. The extent of mixing of seed at gins has not been appre¬ ciated. Recent experiments have shown that modern ginning machinery retains a large amount of seed from each customer and passes it on to the next. No less than 26 per cent' of the seed delivered to the farmer at public gins, as ordinarily operated, may be seed of another variety ginned for the previous customer. It is apparent that if such seed is planted there must be a vast amount of mixing in the field, and de¬ terioration begins. The Cotton Situation. 401 The degeneration that results from crossing in the field no doubt is the basis for the popular idea that cotton varieties “ run out ” in a few years and that “ fresh seed ” must be brought in from other districts. The fact is, however, that locally selected seed of good varieties has proved better than the new stock and some of the best-known varieties have been grown continuously in the same districts for many years, with no indication of “ running out ” as long as isolation, selection, and clean ginning are maintained. Lack of discrimination on the part of buyers in the primary markets is also a serious factor in the deterioration in quality of the American cotton crop, and failure on the part of buyers to recognize superior quality when dealing with the growers has had the natural effect of leading farmers to believe that the most desirable character that a cotton variety can have is that of ghfing a high percentage of lint or “ large out¬ turn at the gin.” Most of the varieties with high lint per¬ centages produce short and inferior fiber and have small seeds, yielding a low percentage of oil, but such varieties are likely to be planted so long as the farmer receives as much for three-quarter or seven-eighths inch cotton as he does for 1-inch cotton. Danger from Foreign Competition. Very active efforts are already being made to establish or to extend the production of cotton in many foreign coun¬ tries. Though such efforts in the past have not resulted in serious injury to the cotton industry of the United States, every season of high prices stimulates greater activity in. other countries. Disturbed conditions during the war period resulted in the suspension of some of these efforts, but there is every possibility that important centers of cotton produc¬ tion will be developed in other parts of the world within the next few years. Many representatives of foreign governments have come to the United States in the last few years to study the Ameri¬ can cotton industry. They have come from Russia, China, ' Japan, India, the British colonies in Africa, Brazil, Argen¬ tina, Peru, and other countries. Foreign governments are also employing American experts and are purchasing large supplies of seed of improved American varieties. 5689°—22-G 402 Yearbook of the Depa/rtment of Agriculture , 1921. The effect of such competition abroad will be felt first by the American producers of low-quality, short-staple cot¬ ton. Manufacturers in the United States had begun to im¬ port inferior cotton from India and China before the war, and though such importations may not become a regular custom, in any event they call attention to the fact that fiber of inferior quality is already being produced in foreign countries more cheaply than in the United States. Since a large part of the American cotton crop is ex¬ ported to other countries, the only adequate protection against foreign competition is to improve our own industry by growing better cotton and by growing it more cheaply than other countries are able to do, notwithstanding lower wages of farm labor. Improvement Through Utilization of Better Varieties. Fortunately the American cotton farmer is not limited to the production of inferior fiber, even under boll weevil conditions. Instead of preventing the use of better varieties of cotton, the presence of the boll weevil makes the im¬ provement of varieties still more important than ever before. In fact, the better methods of preparing and cultivating the land made necessary by the boll weevil provide more favor¬ able conditions for the production of superior fiber. There is available a series of early and prolific Upland varieties of cotton-producing fiber from 1 to If inches long, which are adapted to a wide range of conditions in the American Cotton Belt. With such varieties available, there are no agricultural reasons for continuing to produce cotton of less than 1-inch staple in the United States, and there does not appear to be any industrial or economic reason for continuing to produce the short and inferior fiber that now forms a large proportion of the American cotton crop. Importance of One-Variety Communities. Full utilization of improved varieties of cotton is possible only in communities devoted to the production of a single variety. Where communities are united upon a single su¬ perior variety of cotton and supplies of pure seed are main¬ tained many of the farming problems are simplified. Cot- The Cotton Situation. 403 ton growing is discussed with interest and profit at farmers’ meetings because everybody has had experience with the same variety of cotton. With a full understanding of the behavior of one variety, methods are adjusted more closely to differences in soil, season, and time of planting, as well as to the control of insect pests and diseases, labor supplies, ginning, handling, warehousing, financing, and marketing of the crop. The most rapid progress in American cotton culture has been made the last few years in the Salt River Valley of Arizona, where only the Pima variety of Egyptian cotton is grown. Single-variety communities are also developing rapidly in Texas, Oklahoma, California, and other States where millions of dollars in premiums have already been paid to farmers for superior cotton. Such progress is not possible in communities growing different kinds of cotton, where farmers usually ascribe their success or failure to the quality of the seed. The essential feature is that the community should agreee upon the planting of one variety of cotton and take measures for maintaining the purity and uniformity of the stock by continued selection under the local conditions. This would mean larger crops, better fiber, and higher prices, not only because of the improved quality, but also because each com¬ munity would be able to produce a commercial quantity, a hundred bales or upward, of the same uniform type of cotton. Cooperative Warehousing and One-Variety Communities. Realization of the enormous benefits to be derived from cooperative warehousing of cotton has led to the rapid organ¬ ization in all of the principal cotton-growing States of farm¬ ers’ associations to finance the building of centralized, fire¬ proof warehouses for the proper storage and handling of their crop. Through such associations the farmer secures protection for his fiber from damage by fire or weather, his crop is marketed in an orderly manner, and a fair price is assured for the quality of cotton he produces. Full benefits of such associations can not be realized, how¬ ever, in communities growing many different varieties of cotton. Though the progressive farmer producing a superior 404 Yearbook of the Department of Agriculture , 1921. staple from selected seed may receive a premium for his cotton the first year of two, there would be no possibility of maintaining the high standard of his crop so long as his neighbors persisted in growing inferior cotton and ginning their crops on the same gin. Nor is it possible to receive a full price unless the superior fiber is available in the large commercial quantities that manufacturers require, and only one-variety communities can produce. It is only in communities devoted to the growing of a single, superior variety and maintaining its quality and uni¬ formity by persistent selection that full benefits may be realized from cooperative warehousing and a real improve¬ ment in the quality of the American cotton crop assured. Summary of the Situation and Outlook. The short crop of 1921 plus the large carry-over from 1920 gave the world a sufficient supply of cotton for the year 1921-22. Had there not been a very large carry-over from the crop of 1920 the low production of 1921 would have re¬ sulted in very high prices for cotton. Ordinarily a short crop in the United States should result in high prices, which would in some measure offset low yields. But the extraor¬ dinarily large carry-over from the crop of 1920 resulted in low prices to farmers with a very small crop. The situation was made worse by the industrial depression, which greatly reduced the demand for cotton by the mills of the United States as well as by manufacturers in foreign countries. In addition to these difficulties the South was further oppressed by high prices for fertilizers and high prices for almost everything else that the southern farmer had to buy. Not¬ withstanding that corn and other farm products in the North were very cheap southern farmers had to pay good prices for these products in the South because of the increased trans¬ portation costs. Taken together all of these factors pro¬ duced a severe economic depression in the South. Of course it is not expected that these conditions will con¬ tinue long. The revival of the cotton-manufacturing in¬ dustry in this country is strengthening the demand for cot¬ ton. There is reason to hope that the economic condition of foreign countries will also improve, so that the cotton-manu- The Cotton Situation. 405 COTTON MOVEMENTS PERCENTAGE OF THE TOTAL CROP GINNED, IN STORAGE, EXPORTED AND CONSUMED, BY MONTHS 1913-14 COMPARED WITH 1920-21 GINNED PERCENT TOTAL CROP 55 50 45 40 35 30 25 20 15 10 5 EXPORTS A - N '.If. Q ticLl Qon-'ZL 1 1^; AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE JUI.Y X o z X CO AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE JULY IN STORAGE PERCENT TOTAL CROP 55 50 45 40 35 30 25 20 15 10 5 CONSUMPTION IN UNITED STATES MILLS 1 ft. '?/ s, X I?* !\. * * , A $ V v. Y\ ’ V V N * Si! r TZuM/NG ES>ABUSHM£NTS, «3/9 , ", ,/v 1 1 1 1 1 1 1 AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE JULY X § i AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE JULY Fig. 53.—Ginning begins in July and ends in February; the amount in storage increases from August to December, inclusive; exports increase August to October or November; consumption in the United States mills is quite regular throughout the year. Movements last year differed from the pre-war average principally in the stocks in storage, which was largely owing to the unusually large carry-over from the previous year. facturing industries will revive and the demand for goods manufactured in this country will increase. The burden upon the farmer of the South in making his purchases in the North has been somewhat lessened by a slight reduction in freight rates. Seductions in wages and in prices of things the farmer buys to produce the crop will result in a reduc¬ tion in the cost of the crop. The carry-over of cotton from 1921-22 is much less than in previous years, so that unless there is a very large new crop of cotton to add to this carry¬ over the supply at the beginning of the year will be con¬ siderably less than the supply last year. Already the pros¬ pect for a reduction in supply and an increase in demand has resulted in better prices. The boll weevil continues 406 Yearbook of the I)ej>art 111 to be a very destructive pest, which there is as yet no pros¬ pect of eliminating. Farmers who have been in contact with it for some time have learned to reduce somewhat its destructiveness. Until more adequate measures of control or destruction of the pest have been developed it may be expected that the boll weevil will continue to do enormous damage to the crop from year to year, varying in destructive¬ ness with the character of the season. ADDITIONAL COPIES OF THIS PUBLICATION MAY BE PROCURED FROM THE SUPERINTENDENT OF DOCUMENTS GOVERNMENT PRINTING OFFICE WASHINGTON, D. C. AT 15 CENTS PER COPY V