The Birmingham age-herald., 1905-01-19
THE COTTON QUESTION.
The Warehouse Plan Discussed In Its
 Various Phases.

To the Editor of The Age-Herald
 Some weeks ago I was discussing with Hon. R. R. Poole the matter of the present cotton situation. I advanced the warehouse plan as now In part outlined il what is called the Waco plan" Com missioner Poole therenpon urged me to g. to New Orleans and present my ideas I desire to present them in advance for careful consideration in the hope that they may aid in the great movement for the protection of those who are engaged in the most honorable of callings, farm ing.
 Although it requires a weeks time foi the best of hands to pick a bale Of seed cotton, young brave in the New York "sealpirg market" can make 10 to 100000 bales of blackboard cotton" by snapping his fingers to signal the transaction.
 It is agreed by the best English au- thorities on today's cables that Europe will require 11,25OOOO baies of America n cotton. This is a great piece of frank ness. for the commonly advanced argu- ment on this side --ds been that the no, 00o'000 spindles of the world required only F 000,000 in round numbers, of which S2 2-3 per cent would be American, or 10000, 900 bales. Add to Neils figures the con- sumption of cotton that never touches a spindle, some going to mattress factories, to manufacturing comforts. carpets shoddy goods in woolen factories, absor- bent cotton and jewellers packing, and numerous other uses and it is evident that 12'O0O0O0 bales of all kind of cot ton will be required. There are three different crops of cotton; the plantation crop proper; the crop of linters from cotton oil mills, and the loose hcrop" made from the repae>inc samples. The lintnrs and loose make the commercial crop All figures not otherwise designated take this crop in the count.
 A partial solution of the present de- pressed condition of cotton would be for the farmers. merchants and men of means of the south, to form a pool enter the New York market for real cotton buying 5O0OO0 10 100000 bales of cotton for the next four months actual delivery, demand the cotton, refuse to sell in the future boards, and market the cotton to bonafide millmen and exporters. at say. not less than 10 cents. Then the southern holders to refuse to sell at any price un- der 9 cents for middling Southern spec ulators could buy cotton futures if they wished to gamble.
 The best plan for permanent relief is the formation of a fedora. corporation chartered by Congress- for a system of pended warehouses to receive and store cotton and issue warrants therefor, to be negotiable and free from state and fed eral taxes for the current year, ending September l. All holdovers to be assessed for taxes in the state All cotton stored therein to be classed only as full grades and branded with a uniform class mark :; also metal tag class mark. Make 1t a criminal offense to purposely or wilfullY destroy the branded class mark The buy ec can affix any other marks but this cotton producers class mark is to be the same when ,t reaches any mill or port in the world, unless altered after leaving the United States
 Let the first step be the erection of these warehouses or the purchase of suitable warehouses in say fifty ports ana Dflnclpal lONIS III ine Cotlpn SldLcS. r. found desirable the providing of ware houses in towns receiving 10000 or more bales, with banking facilities, can be un- dertaken after the principal points are provided It may be that the last may not be needed
 A farmer is to lose the identity of his particular bale. He can surrender war rants for the number of bales and re- ceive cotton of a like average.
 A mill man at a distance, using 5000 or 1U,0OO bales could buy these warrants and move the cotton over period of months a. he needed the cotton. These warrants could be used by the mill as collateral even in Europe. It would represent a se- curity only second to first class bonds. The rate of interest would be low. 1t would be inviting to the bankers for several reasons. At present the cotton future business does not pay the banks for loans more than nominal amount The cotton warrant system opens up a graat line of loans. such as is nov in demand for stocks and bonds in New