The leader., 1905-07-01
COTTON HOLDING COMPANY.
Good Reasons for DiscOuraging the
Formation Of Speculative Con-
cern.

cern.
| La q recent issue Of the IN. %.
| Times Democrat, appears a strong
Iarticle combating the idea Of
i forming a speculative company.
| Coming from one who is familiar
with all phrases ofscotton growing
land cotton selling, it is worthy Of
careful reading its logic is ire
! futable. Mr.. @. MeneIas is the
Iauthor, and the article is as fol-
ilows::
/ notice ID the issues of your
valuable paper of both and 31st Of
/ May that the Cotton Holding
company decided to vigorously
prosecute its plans for the holding.
Eof the existing cotton surplus, and
Ito that end will send agents into
1.-THE field to appeal to the cotton
producers and cotton merchants
Throughout the South to subscribe
Ito It's capital stock, fixed at
$40, 100000, each person, if possi-
bic, subscribing to one share, ($1).
for each bale of cotton that he
raised last year, and thereby have
eyery planter interested in the
company and in control of its pol
icy.
Once the capital stock is raised
the company will have no difficult.
lty in financing any amount of cot
ton which may be turned over to
/ it, or otherwise acquired, to bold
flor higher prices, and even to car
Try over for the planter the surplus
cotton from year to year, and
thereby steady the cotton market
and bring about almost uniform
Iity Of price.
In other words, the company
proposes to invite the planters to
supply the financial means, and
enable it to hold cotton and
manipulate the market in such a
lWay as to enhance and keep up.
1.-THE value of the staple to a salts
/ factory point.
1t appears to me that this pro-
posed plan savors too much Of a.
bold speculative undertaking, and
las such it is pregnant with dis
Iturbing elements and full of pit
falls and evils that sooner or later
could bring over the South great
[convulsions and serious calamities
to the planters. I consider Che
plan of the Cotton Holding Com
lpany as being entirely chimerical
and destined never to materiaIize.
Yet the subject is of vast impor-
Itance, and seriously hope that it
will be discussed thoroughly il all
Its phases by the Times Democrat
and all the other leading papers
[of the South, and placed before
the public in clear expose of
possible results that may effect
the welfare of the farmers and the
ISouth alike.
| In my humble opinion, the far
liners don't need any such combi-
nation or trust. The South is
prosperous beyond expression.
! The bank statements showing
their surplus resources and depos-
| its speak most eloquently. The
/ farmers are the wealth producers,
land their prosperity or adversity
| is shared BY the entire commune
lty, and in times Of need the far
liners find always a willing hand to
help. When the bears predicted
Il fiVe-cent cotton and the price had
reached nearly to six cents, and
things looked very gloomy, there
was no rush to throw cotton over
i board, nor any difficulty to Get
leasiIy all the money needed Oh
4 Icotton held. It was to the inter
lest Of the bankers and merchants
to back the farmers, and they did
lit cheerfuIly and bravely, and
THUS the temporary gloomy clouds
lwere soon succeeded BY brighter
prospects and material improve
lment ID Che situation.
i There Is already too much spec
uIation III the land and it should
mot be further encouraged The
/ best and safest policy for The far
lmer is to have his surplus of cot
ton well under bis own control
i To sell it when it suits him best,
Eor borrow money on it when need
shall require il. The less be has