The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1903-06-24
1'sUB.TRElSURY OR
SOMETHING BETTER. .
New York Cotton Exchange Plan
Similar in Some Respects to Al
lance Demand.
LICENSED WAREHOUSE IN GROWING
DISTRICTS.

The strong movement on foot to
finance the entire cotton crop OF this
country in the United States and to
hold the cotton as near the fields as
possible is winning closest attention of
business men.
IF the plan that has been proposed
to accomplish these results is success
ful it viii amount to the saving OF mil
lions to the farmers and cotton handlers
of the south.
Among the leaders in the movement
is Mr.. James MCGOWAN, of the firm of
Inman & Co., of this city, who is also
q member of the New York COTTON
exchange and one Of the committee
entrusted with the development of the
plans for the new departure in the
method of carrying on the cotton
business.
New York telegrams, which were
published in The Chronicle yesterday
morning, gave indication of the pro-
gress of the plan. These dispatches
did not give the plan in full.
AT the Office of Inman & Co. the
salinet features of the proposition
were pointed out yesterday to
Chronicle reporter.
The idea, in brief, is to have the
New York cotton exchange, the re-
cognized authority and guarantor on
ali matters relating to cotton, to license
warehouses throughout the cotton belt
and supervise them through regularly
appointed deputies so that certificates,
which will be negotiable at any bank
or money market, can be issued on de-
posit of the staple in these licensed
warehouses. AS the matter stands
now, authoritative warehouse certi-
fcates can only be issued on cotton
that is transported all the way to
New York ard put in storage at the
few licensed warehouses that the New
York cotton exchange maintains in the
vicinity of the metropolis.
Under the present plan the cotton
must stand, the heavy expenses OF be-
ing freightsd to New York and being
handled two or three times or else 1t
must be put ON deposit in some OF the
European markets and held there at
large interest charges.
In lieu of either Of these two ways
of holding on the dealer who is full on
cotton must now sell at the market
quotation and gain or lose on the deal
according to the price thai. day, with
out any chance of waiting for bet
ter figure, which, in his Judgment, he
may expect.
It takes very large amount of
money to handle the cotton crop and
New York being the great money mar
ket of this country, the thought is to
develop plan whereby merchant in
Augusta or elsewhere in the cotton
belt can buy up cotton, store it IN a
warehouse near home and enjoy the
same borrowing facilities in the metro
polls as if the cotton was stored there.
This plan, if adopted, will permit
the southern cotton men to buy IN un-
limited quantities and enable them to
hold it until profitable price is offer
ed. For instance, take the condition
of yesterdays market. The price for
spots was 1881, and there was no cot
ton to offer for this figure. If there
had been licensed warehouse situated
in this vicinity great deal of cotton
could have been held and a much bet
ter price realized than that at which
it was disposed of as soon as it could
be rushed to the market.
There would also be great saving
in cotton for export. Under the
present usage big exporters have to
Store their cotton in New York until
sold, for the obvious reason that this
is the only way by which money can
be raised on it. Say, then, that the
cotton is sold to a spinner in Europe.
Already the southern merchant has
paid the shipping to New York, where,
If there had been licensed warehouse
in this vicinity, he would have been
spared the heavy handling charges in
New York, as well as the difference
in freight between either of the near
ports and that Of New York, which,
all told, would have been the saving
ef possibly a dollar bale.-Augusta
Chronicle.