COTTON 261 



given, and the price we will say is now twelve cents. 

 But how will this advance in price affect that re- 

 ceived for the usual crop ? It will cause it to ad- 

 vance also and meet the new scale in price. 



It may happen that there are men enough and 

 equipment sufficient to produce not only the nor- 

 mal quantity but enough to handle additional acres 

 as well. When the call comes for more cotton it 

 may not be met, since all lands that pay at the ten- 

 cent rate are growing it already. What happens? 

 The intensity of the demand will control. If it 

 is insisted upon, the grower will supply it through 

 heavier applications of fertilizers and through 

 increased acreage. But at what price shall he 

 sell it? He may sell it at the same price as he 

 has heretofore been selling. But if that grown on 

 good soil in previous years was produced and sold 

 for ten cents per pound, which in every sense was a 

 reasonable rate, then if he now sells this increased 

 product at the old price, a product that costs him 

 more to produce since the yield is less and expense 

 more he will sell the increased product at less 

 than cost, thereby losing in the enterprise. 



To meet this condition brought about by opening 

 up new lands, the grower will have to take from 

 his normal and usual crop, returns to make good 

 the deficiency of the new. This the wise man will 

 not do. On the other hand, this follows in practice : 

 Since more cotton is wanted, and since other acres 

 are not so profitable, in order to get the same profit 

 for the additional land as that received on other 

 lands before the enlarged demand came, every 

 grower will expect more per pound. 



But the producing power of land does not govern 

 price only directs it; it is the commodity itself 

 that fixes values, hence if twelve cents is paid for 



