Fitzgerald enterprise. (Fitzgerald, Ga.) 1895-1912, 1908-10-10
The Selling of Spot Cotton.

ers has ever proven very effective in tying up the
supplies of raw cotton at the opening of the fall
season. Yet it is the one period of the year when
if cotton were held off the Market the best results
could be secured to the growers. AT the opening
of the season each year the cotton mills of the
world have less supplies of raw cotton on hand
and in stocks than at any other period. The crop
of the past year has been usually exhausted by the
first of September and buyers are always in the
field loaded with orders for new cotton. An effec'
tive holding movement inaugurated at the opening
of the season would always the price of spot
cotton to advance to satisfactory figures. Then
when good market had been secured the gradual
selling of small part OF the crop each month
would not only maintain good price, butt would
keep stable market The rapidity with which
the new crop is sold in the months of September,
October and November always insure the spinners
with superabundance of supplies not only to
meet temporary needs but also sufficient for many
monshs to come. Hence there is no real need for
activity on the part of the mills to advance their
prices in order to induce farmers to sell. They
know the cotton has always been coming. no mat
ter what price, and so they leave the growers at
the tender mercies of the buyers and spectators
who manipulate the market to suit themselves,
Under this system the cotton growers always get
the worst end of the bargain.
There is a reason, of course, why the farmer,
or so many of them forced to sell their cotton
in the early fall months. They have contracted
debts with supply merchants or local banks to Sc
cure supplies or funds with which to make their
crops and as these debts are all made to fall due
in October the crop has to be sold in order to meet
these maturing obligations In many of the old
Of 6Ollo IF mo
tlzers are bot ON time and these debts have to be
Cancelled. The local banks claim that they are un
able to finance cotton stored in warehouses Tor the
growers until after the loans let out III the spring
and early summer have been Hquldated The
bankers also claim that the only way for man to
keep his credit good is for him to meet his oblga
tions promptly.
The local banks in the South borrow consider
able money in New York in the early part OF each
year, and these loans have to be paid back i'll the
fall. so that banks Iush their collections in
order to maintain the integrity of their credit with
Eastern banks in order that they can secure &C
comodatiOns the next spring. Under these cOndl-
lions we are bound to conclude that the most vi
tai obstacle in the way of the slow marketing OF
the crop from the opening to the close of the sea-
son is the credit system, or debt. No man can
successfully sold cotton which does not in fact be-
long to him. If the proceeds of such cotton is due
some other man on matured OBJ legations then to
hold such cotton means that the holding is done at
the expense of the creditor even tho it may be at
the forcible wish of the debtor.
The cotton growers of the South can do no
better thing for themselves than to overthrow the
credit system and gradually, if not rapidly, get
rid of the debt. If the farmers generally were out
of debt this the present efforts of spectators
and foreign SpinnerS to depresS the price of this
crop would not avail With the crop of 1907
practically exhausted, no finer opportunity was
ever presented for the growers to absolutely control
the situation than the presents but being handicap
ped by conditions which the result of a ba2
system of farming they are forced to suffer the
penalty of prices which scarcely represent the cost
of production. It is true that many thousand of
farmers are each year getting on cash basis and
becoming more independent of the cloud of credit
and debt. We believe that the formers are max
ing rapid strides the road to ultimate prosperity
and independence. Success, sure and speedy, can
only come through the sensible system OF dlverSlh
ed agriculture put into practical operation on each
farm. If corn were % cents buShel III open mar
ketS it would still be more sensible and economic
for each farmer to raise what corn is needed on his
farm. With corn at 81 per bushel it becomes four
times as imperative to raise such food supplies at
home, and until a majority of the cotton growers
strictly adopt that plan they will unable to Success
fully cope with spinneTs, buyers and speculanorS,
who fatten each year upon the proceeds of the
farmers labor. Cooperation will greatly help to
push forward campaign of protection and solution
ofexisting troubles, and with united, combined
active effort success is certain to be realized
Cotton Journal.