COTTON WAREHOUSE CONSTRUCTION. 3 



seems to be only one way in which he can protect himself. He must 

 prepare to hold his cotton until it is needed by the manufacturers 

 and exporters. Then, and not until then, will he get a fair market 

 price for the chief agricultural product of the South. In preparing 

 to hold cotton it is very important that he should make some pro- 

 vision to protect it from damage by weather. It is also necessary 

 to arrange his business affairs so that he can hold his cotton for a 

 considerable length of time without becoming financially embar- 

 rassed. 



An adequate storage system is essential for the proper handling 

 and marketing of the cotton crop of the South, which, including the 

 seed, is worth annually approximately $1,000,000,000. In many cases 

 it is difficult for small merchants and growers to borrow money on 

 cotton at 7, 8, or even 10 per cent. If it were stored in a standard 

 warehouse belonging to a properly organized system it would un- 

 questionably be possible for merchants to reduce this interest rate 

 to 5 or 6 per cent and possibly to 4 or 4J per cent. This would help 

 greatly in financing and marketing this valuable staple. 



In addition to cotton, various other articles could be stored to 

 advantage if adequate facilities were offered. There is a great 

 demand for storage space for fertilizers, farm implements, feed- 

 stuffs, and merchandise of various kinds. Storage facilities are 

 needed also for various other agricultural products. There are at 

 least $2,000,000,000 worth of farm products and merchandise that 

 undoubtedly should be stored annually. It is remarkable that this 

 opportunity for profitable investment of capital should be neglected. 

 The inauguration of such a system of warehouses would give great 

 impetus to the commercial development of this section. This subject 

 is uppermost in the minds of the best business men, and all concur 

 in the belief that properly equipped warehouses are a great necessity. 



PRINCIPLES OF STORAGE. 



Conservation is the central idea involved in warehousing. Storage 

 is not entirely a modern business development. Some of the oldest 

 business establishments of which we have any account were founded 

 on the use of storage places. Ancient history gives some good illus- 

 trations of the value of conservation. The Phoenicians developed a 

 wonderful commerce on the Mediterranean and became a rich and 

 powerful people. Their facilities for handling and conserving wares 

 made this great development possible. The Egyptians saved the sur- 

 plus grain during years of abundant harvests, and when years of 

 famine came they not only had plenty but sold the surplus they had 

 saved to their neighbors at "corner" prices. Unfortunately, the 

 American people have not been inclined to conserve their resources. 



