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

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from it rs follows:
The operations of the New York and
Liverpool cotton exchanges, in their
buying and selling of Futures" should
suggest to the farmers and planters Of
the South some means to bc 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 all
gambling, cotton speculation Is sooner
or later detrimental to those who indulge
in it j; but this is less q matter of com
plant than the injurious effect it has
upon the producer of the staple, the lie.
gitimate price of whose labors is strangled
through he pernicious practice. TIE
cotton farmer Of the South is even worse
off and moro mt the mercy of n limited
ring of illegitimate operators to-day
than the grain. grower of the West, al
though the latter has been for n greater
number of years the victim Of this "fu-
ture" system.
The system is as wrong in principle
as it is mischicvous in consequences. II
is commercial in no proper sense of the
word, because it does not deal with
actual and substantial value, but with II
myth in form and dclusion in effect.
Yet it is sufficiently influential to posi-
lively affect, ard 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-
gcther 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 mere
question of money margins that is,
a greater or less sum put up by some
adventurous spirit to cover the risk Of
tain number of imaginary cotton bales
September in July at certain figure
and the price for cotton that month
should be permitted to rise during Au-
gust, he has the option Of selling of
course, at q profit, and may draw his
margin with the excess thereon but
should moro powerful influences be
against him, and the market DC kept
upon downward tendency. his margin
gurs line 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 off, before pIow has
struck q furrow even in preparation
for crop. 1t is well understood thai
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, hut il
equally hazardous.
It's encouraged, however, by s. inner.
and consumers, because in the hands O
combinations this future" system con
trolls the price of cotton without rcgart
to legitimate values, and is rs grea
lever in forcing down the market, be tn
supply great or small. 1t operates to tn
general disadvantage and loss Of South
ern producers, and means should be de
vised, co-extensive with the cottol
thorough and universal combination i
the difficulty, however. The Seu,heri
farmer is terribly welded to his idols
and big cotton crop is the leading one
While this lasts the future" speculate
will have it all his own way. Nothin,
can be done looking to the overthrow o
the spectators influence so long as tn
South furnishes annually upwards o
five million bales of cotton, producct
under circumstances of cost and indebt
cdness that compel the producers TO for
ward ii to market to be sold without de
lay for whatever it will bring.
This is square fact and should d;
squarely confronted The remedy is t,
be sought in making cotton an "off' o.
"side" crop. Reverse the order O
former things, and secure bread ant
meat first, aud plenty of both, and cot
ton last. 1t is indisputable that cottor
is always cash crop, for which there i.
ready sale; but with low middling a
SIC. pound, the farmer who has toilet
for twelve solid months in raising it vii
find it uphill work to pay his taxes
Were attention universally given to tht
improvement of stock and diversity o
productions by the farmers of the South
making cotton supplementary crop il
; system of provident husbandry, il
would be long step in the direction o
change jobbers. The question of sup.
ply and demand has likewise partirii.
lar bearing upon the price of cotton, anl
while the supply is in excess low prices
must prevail. If more diversified ant
provident industry resulted in shorten
ing the general supply of cotton, highe
prices would naturally ensuc.
Such seems to be the logical deduc
tion i'll the case and could some system
be arrived at throughout the South, sal
through the agency of local and dstric
organizations entered into voluntarily
by the farmers, whereby 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 ndi
vidual option, however, no general ant
permanent application Of the remedy
suggested is To he anticipated, for Farme
! Jones is not going to be left benin,
, while Brown and Smith on cither."sid
of him are wrestling for dear life Will
, every available acre under the seductiy,
plant. AS at present managed, the cot
I ton producing interests leaves itself IL
. chance for fair prices, if we except th
y cotton worm, which may come alon,
= and eat two-thirds of the crop up, caus
ing an unexpected shortness of supply
To make the remedy effective, ther
! must be ombination-universal combi
q nation-some system extending all owe
q the cotton producing area by whic
n lessened cotton production shall
). achieved, by means of voluntary obliga
q ton TO pro rata the cotton crop accord
ing to means and necessity. With n wei
t filled smoke-house and corn-crib tn
r average Southern farmer is Independent
anyhow, and if he misses the means G
3 making five bales of cotton realize q
much in net profits rs ten do now, he
| more A he dpriIn1 than cnmmian ef