228 COTTON 



done only with reasonable accuracy, subjecting 

 the method to some degree of criticism. Since the 

 gin and the press are so available now, there is no 

 reason why every farmer should not sell his lint 

 in the bale rather than in any other form. 



BORROWING ON THE CROP IS BAD BUSINESS 



An interesting economic development has come 

 with the rise of the cotton industry. It concerns 

 itself with cotton factors who advance money to the 

 needy cotton grower, taking as security a lien on 

 his crop. The usual advance is ten dollars or more 

 on the bale, given at the highest legal rate of inter- 

 est. Without this help of the cotton factor, many 

 people would be unable to purchase seed, fertilizer, 

 feed, teams and stock, and so produce a crop. By 

 borrowing on the crop they are able to tide over the 

 space of time intervening until marketing of the 

 crop arrives. Of course, this is bad business; 

 while it is profitable for the cotton factor, it is ruin- 

 ous for the grower, and consequently injurious to 

 the community. When the crop is harvested it may 

 be sold at once, the factor paid, and the balance 

 credited in the bank to the cotton grower. 



This balance, during the good year, may be suffi- 

 cient to start the tenant or other grower the next 

 spring, and even carry him to the close of a second 

 crop; or it maybe so small, that he will with difficulty 

 be able to live through the winter, and begin a new 

 crop. Often it is necessary for tenant, or the other- 

 wise poor farmer, to begin borrowing early in the 

 year to meet bare necessities. When good seasons 

 come, this crop lien business is of smaller propor- 

 tions, but with poor seasons such advances are 

 great and consequently burdensome to the grower. 



