The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1904-08-20

'.'o business acumen and the grea
energy oI the men of the old Soutb
j III this cotton warehousing mat
.er commenced its agitation in I'm,
manufactures Record in 1909 ho
iieVlng that on the broad So. Ia in
tended 1t was new idea, but thre,
weeks ago when l first read the renor,
OF the cotton planters convention Of
lool' realized that that was n fa,
aDler review OF the situation and q
huch clearer statement of the need
and value of such system than anv
one has written since. There are
ol course, great many cotton ware.
houses throughout the South, some of
"hlcll Issue negotiable receipts, but
the plan have suggested and which
ny the way suggested to me in 1893
by the Merchants National Bank of
Baltimore, is of broader character
than the simple local warehouse. The
merchants Bank people had seen the
results OF one bonded warehouse in
Columbia, S, O., and they said TO
me that the establishment of such a
system throughout the South would
revolutionize the cotton industry of
this section, vastly increasing its
wealth. add to its banking facilities,
secure better and more uniform prices
FOR cotton and makes cotton the best
collateral in the world as a basis for
banking operations. Ever since then
L have urged the development of such
system and lately presented the idea
to some large capitalists, who made
close investigation of the plan. As
an outcome OF their study they have
organized the Southern Cotton Cor
poration to establish such system of !
warehouses and at the same time to |
develope square bale COMPRISING at |
the gin, improved ginning machinery
etc. The company will not engage
in any way in buying or selling cot
ton even on commissions; it will not
trade in cotton in any way, but will
build, buy and lease warehouses in
order to establish a chain Of ware
houses throughout the South, receive
cotton on storage from a farmer or
from anybody else, issue therefor a
receipt which will be made absolute
ly gilt edge collateral. The owner
OF such receipt will no longer have
to borrow money on his credit,
but he Can use this receipt as collat-
eral for loan and carry his cotton
till he is ready to sell or to ship. To
De valuable such system must be
strong enough to make its weight
and accepted any where in
The cotton world This it is proposed
10 do. The full development of such
/ plan means that cotton will not be
'ushed to market in three months, as
It present. but that il wall ho for
yarded to the East aud Europe dur {
ng twelve months as actually needed c
or consumption. 1t means that cot
ON will be financed in the Sonth and
lot in the East and Europe as at
resent, and that the Southern ban
er will use his money in cotton
welve months every year ipstead of q
our or five. 1t means an enormous e
expansion on safe basis OF the vol 1
me of Southern banking and one OF 9
he greatest steps ever made in ac- s.
what the far seeing men L
( the cotton planters convention OF a
35l outlined as the only possible q
leans to overcome the fluctuations in II
rice due to irregular production and p
OF to overproduction. The interests q
lentified with this movement are Is
ot only studying cotton, but they Is
re studying very closely for the first u
me the whole Southern situation, Ill
I'd there may be some very great
rprises in store in the near future 81
Southern industrial interests as all W
ltcome of what they have already
ldertaken. y Il. :.