St. Landry clarion. (Opelousas, La.) 1890-1921, 1906-12-08

New UTleanS, Ine pTlnclpal primary
market, is relatively higher than al
New York and Liverpool, but only in
the very recent past has the real
reason for this reversal of the Logical
order of things cottonWise been gene
rally understood, and the awakening
has added much potential force to
the farmers power as a price maker,
A very few years ago the producer
OF cotton, burdened with mortgages
and debts Of all kinds, accepted, gene
rally without question or protest, the
price offered by his merchant or city
factor, and most Of the money SO reali-
zed was quickly absorbed by usurious
interest rates and overcharge for
plantation supplies.
This condition of affairs gave the
balance Of power to the consumer.
and in the natural course Of events
the speculator came to set the pace,
which buyer and seller alike followed
for many years. Thus the middlemen,
or Exporter, the man upon whom the
spinner relied to round up his sup
plies, and on whom the country mer-
chant counted as a constant customer,
sold cotton ahead which he did not
possess in the confident knowledge
that when the time came to sell his
future hedges and buy in his spots
for delivery to the spinner the trans
action would mean clear profit to him
in addition to his regular commission,
because he himself and his allies were
the price dictators.
This was the actual condition of
affairs up to three years ago. But a
salient force had been at work during
two or three years prior to that time.
Big demand and comparatively high
prices had really brought partial pros
perity to many farmers, and many a
mortgage had been lifted, and not
few farmers had begun to carry over
cash balances from one year to an
other. Then came the memorable
speculative bull campaign Of the New
Orleans operators in 1904 which left
many millions Of dollars in the pockets
Of Southern folk, money which was
promptly utilized in throwing off the
old yoke.
Co-incident with this occurrence,
the farmers began to learn as indivi-
duals the advantage Of holding their
cotton when the market was declining,
and by experience found that the
boasted independence of the buyer
was sham and fraud because the
mills could not operate without raw
cotton supplies, and could not indef-
nitely extend the date of delivery in
order to assist the men whose con-
tracts they held.
This knowledge instantly revolu-
tionized the cotton business, and be-
fore the spinner and the exporter
realized just what had taken place,
two cotton crops had been sold at a
valuation enhanced by more than
500, 100000 over the aggregate
value old standards would have
brought.
Thus within three years experience
along practical line has taught the
farmer how to market his cotton to-
the best possible advantage when the
price is advancing The new method
Of marketing, which means tens of
millions Of additional profit to the
farmer every year, is worked out in
this way
The spinner buys cotton for for
ward delivery, just as he has done all
along. The exporter sells it to him.
But the farmer who sells to the ex-
porter's buyer refuses to accept the
price offered, and demands an adj
ditional ten, or even fifty, points; or
maybe decides that the market IS too
low and says he wants to wait awhile.
Before long the exporters contract
becomes due, and he wires his coun-.