The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1878-11-28
"Futurc" Speculation and Cotton Pro-
luctiOn.

The operations OF the New ork ant
Liverpool cotton exchanges, in theil
buying and selling of Futures" should
suggest to the farmers and planters o.
the South some means to be employed
in counteracting the results which have
followed these dealings for the past five
or six years. The system is compara'
lively new, and is the growth of an un,
healthy spirit of speculation. Like al
gambling, cotton speculation is sooner
or later detrimental to those who indulge
in it F; but this is less matter of COM
plaint than the injurious effect it has
upon the producer of the staple, the lie,
gitimate price of whose labors is strangled
through the pernicious practice. The
cotton farmer Of the South is even worse
off and more at the mercy of limited
ring of illegitimate operators to-day
than the grain-grower of the West, al
though the latter has been for greater
number of years the victim Of this "iu'
ture" system.
The system is as wrong in principle
as it is mischievous in consequences. 1t
is commercial in no proper sense of the
word, because it does not deal with
actual and substantial value, but with a
myth in form and delusion in effect.
Yet it is sufficiently influential to posi-
lively affect, and always injuriously, the
interests of those who spend their labor
in producing cotton, and who should
reap The first and chief profits of the in
dustry. The manner of working this
mischief is SIMPLIFY enough. a body of
comparatively irresponsible men get to-
gether on the boards of an exchange
hall, and buy and sell so much cotton
for future delivery. There is no cot
ton, for none is required. 1t is a mere
question of "money margins Is,
greater or less sum put up by some
adventurous spirit to cover the risk oil
future" house in holding on to GER
tain number of imaginary cotton bales.
If the speculator, for example, buys
September in July at a certain figure,
and the price for cotton that month
should be permitted to rise during Au,
gust, he has the option of selling, oi
course, at a profit, and may draw his
margin with the excess thereon but
should more powerful influences be
against him, and the market be kept
upon downward tendency, his margin
goes the way of many an honest mans
money. There is no genuine cotton in
all of this, for New York will sell you
cotton supposed to be delivered next Ju.
ly, and Liverpool quotes deliveries
fourteen months of, before a pillow has
struck furrow even in preparation
for q crop. 1t is we'll understood that
this species of speculation is pursued in
the main by men of small means with
gambling tendencies. 1t is considered
more respectable than dealing faro, but i.
equally hazardous.
It's encouraged, however, by spinners
and consumers, because in the hands oi
combinations this future" system con-
trolls the price of cotton without regard
to legitimate values, and is rs great
lever in forcing down the market, be the
supply great or small. 1t operates to the
general disadvantage and loss of South
ern producers, and means should be de-
vised, co.extensive with the cotton
States, to counteract it. How TO secure
thorough and universal combination is
the difficulty, however. The Southern
farmer is terribly welded to his idols,
and big cotton crop is the leading one,
While this lasts the future" spcculatol
will have it all his own way. Nothing
can be done looking to the overthrow oi
the speculator's influence so long rs the
South furnishes annually upwards OF
five million bales of cotton, produced
under circumstances of cost and indebt'
edness that compel the producers to for
ward it to market to be sold without de.
lay for whatever it will bring.
This is square fact and should be
squarely confronted. The remedy is tc
be sought in making cotton an "of" OIL
"side" crop. Reverse the order ot
former things, and secure bread anc
meat first, and plenty of both, and cot
ton last. 1t is indisputable that cottor
is always a cash crop, for which there i;
ready sale; but with low middling Al
sc. a pound, the farmer who has toiled
for twelve solid months in raising it vii
find it uphill work TO pay his taxes
Were attention universally given to thu
improvement of stock and a diversity 0
productions BY the farmers of the South
making cotton a supplementary crop il
q system of provident husbandry, i
would be long step in the direction o
removing them from the thraldom of ex
change jobbers. The question of sup
ply and demand has likewise particu
lar bearing upon the price of cotton, ant
while the supply is in excess low price
must prevail. II more diversified ant
provident industry resulted in shorten
ing the general supply of cotton, highe
prices would naturally ensue.
Such seems to be the logical deduc
ton in the case and could some system
be arrived at throughout the South, sa.
through the agency of local and distric
organizations entered into voluntarily
by the farmers, whereby a pro rata o
land titled should alone be planted il
cotton, this tendency to excessive pro
duction, under circumstances that leav'
the producers at the mercy of specula
tors, might be checked. Left to indi
vidual option, however, no general ant
permanent application OF the rcmcd.
suggested is to be anticipated, for Farme
Jones is not going to be left behin'
while Brown and Smith on either sid
of him are wrestling for dear life will
every available acre under the scduciiv
plant. AS at present managed, the cot
ton producing interests leaves itself n
chance for fair prices, if we except th
cotton worm, which may come along
and eat two-thirds of the crop up, caus
ingan unexpected shortness of supply
To make the remedy effective, ther'
must be combnation-universal combl
nation-some system extending all Owe
the cotton producing area by whlc
lessencd cotton production shall b
achieved, by means Of voluntary obligl
ton to pro rata the cotton crop accord
ing to means and necessity. With a vel
filled smokc-house and corn.crib th
average Southern farmer is Independent
anyhow, and if he misses the means
making five bales of cotton realize q
much in net profits as ten do now, he
mare IN he derilcl than cOmmiscratel