The two factors in determining the supply are the seasons and the acreage. While the general law of the average holds, history shows that the temperate zone is liable to wide fluctuations in seasons, which it is impossible to foresee. The recourse to offset the unhappy consequences of wide fluctuations is a reservoir or fly-wheel, into which the fat years can pour their supplies for making up the deficit of the lean years. The uncertainty of cotton demand, hinging upon war or peace, is now added to the uncertainty of the cotton season. Recourse to storage is therefore absolutely necessary, and a wide system of warehouse storage should be created. I will not endeavor to go into the details of such a system, but venture to suggest that it should be organized on bedrock principles, and operate on the securest lines, so that a warehouse certificate would be absolutely safe and universally negotiable. Lessons could probably be learned from the systems in use in pig iron storage, where the market is also subject to wide fluctuations. The American Pig Iron Storage Warehouse Co. would probably be the best pattern. The factors of acreage should be carefully investigated before any radical action is taken. I know it is best for a farmer to have a diversified crop as it is best for a city to have diversified industries, and it is wise for a farmer, like a nation, to produce the necessities required for home consumption. The present fearful depression will doubtless have a partial benefit in this direction, but I fear too much importance is now being given to this question. While I would urge the farmers to diversify their crops, I would hesitate to recommend a sweeping reduction in the world’s production. In fact, as an economic principle, there can be no such thing as over production at this stage of the world’s progress, particularly in the great world’s staples, like those of food and clothing. For generations to come mankind, on the whole, will go hungry and half naked. The true principle is not to try to reduce the product but to provide for a general increasing buying capacity and particularly for the case of the undeveloped peoples of the earth, by increasing their opportunities to work for the world’s market, and to make the wages necessary to purchase the products. If we could only be sure that peace is to prevail, so that the market of China would be restored, and could go on increasing, I would not hesitate to urge against any reduction in acreage. On the contrary, I would urge a steady increase, for no matter how great the increase, the supply would never keep up with the growth of demand. As conditions now stand, however, I believe conservative action is advisable—action that would lean rather toward the side of preparation to store up for future use the surplus, if war should come, than to materially reduce the acreage, and my advice to the individual farmer is to become independent and diversify his crop, and then plant his usual