COTTON WAREHOUSE CONSTRUCTION, 3 
seems to be only one way in which he can proteet 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 43 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 
mpetus to the commercial development of this section. This subject 
‘Is uppermost in the minds of the best business men, and all concur 
im 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 Phcenicians 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. 
