Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1908-06-26
THE WAY TO IS
CENTS COTTON.
CONTINUED from First Page.)

not Only ldll 10 IediIHe tllS peSt Hiai hC''
but interfere with the interests Of
your neighbor with no possible benefit
to yourself.
Your Friend-The Exchange.
There have been years during the
last decade when natural conditions
should have given the cotton grower a
| l2-cent to 16-cent market for his en-
, tire crop, but your self-appointed guar
dian, the New York Cotton Exchange,
has seen to it that the spinner got in
right" on his supply first, then took
his own big slice and charitably allow
ed YOU the remainder. This "cOn-
Spiracy in constraint of cotton growers
prosperity" has assumed the authority
of dictator, and holds position in the
middle ground where its members take
with either hand a toll from both
spinner and grower.
BY inventing a contract based on
nothing more substantial than thistle
down, and their system of margin deal
ing in futures, and by selling what
does not exist and may never be grown,
they manage to prey upon the neces-
sites of the mortgaged peon-the
small grower, and forced the prices to
abnormally low level 1t is not enough
that the brokers and gamblers depre-
ciate the early rush of new cotton by
holding off the market until a glut
brings the figures to their idea of value,
meantime disseminating a world of ly-
ing information, but they must needs
sell millions of bales of "anticipations"
which they call contract cotton" go
ing short of the market on a crop not
yet planted. This short selling of fu-
lures has been the cudgel with which
the various exchanges have beaten
they cody robbed them. The world
has use for commodity exchanges, hon.
eStly conducted, but has no need for
gambling houses in stocks, grain, pro-
visions or cotton, when the law puts a
ban upon faro, roulette, poker and 9TH
er equally honest and equally neces-
sary games.
The fact that licensed gamblers are
willing to margin IS a bale or more,
that they can cell the turn" on next
months deal out of the price box, ar
CUES for nothing in the cotton grow
ers' market facilities. If there be
aught of good in speculation in cotton
futures it was devised wholly for the
benefit of the spinner and against the
pockets of the cotton grower.
In March of this year, before a seed
was in the ground, the exchange brok-
ers and their imaginative statisticians
had forecasted the acreage to be plant
ed. They knew there was to be big
crop in spite of possible drought,
floods or ravages of the weevil. Cotton
was going to sell at cents or less for
the remainder of the 1907 crop, and
they proceeded to "short" millions of
bales of thistle down i'm the attempt to
frighten timid and financially weak
holders of cotton to sell their crop rem
nant, because they need it in their
busineSs-need it badly. They want
to buy it at cents and then put the
price to Is cents: or even 20 cents, for
the benefit Of their own bank ac-
counts. Conditions warrant the high
price.
1.-The farmers be damned"
They propose to allow the grower
just enough to exist on, and leave
him barely vitality enough to raise
another crop, and they prefer to see
him wear the yoke of debt for that
means they can work the same
scheme on his next season, and all
other seasons.
The brokers' assets are a knowl-
edge of statistics which they manipu-
late for the delusion of their victims.
A borrowing credit at the bank and
capital enough to put up a 10 or 20
per cent margin on the CANDLES.
They act on the belief that the cot
ton growers are, first, in debt, and
must sell their crop; that they are
avaricious and have no consideration
for each other; that the cotton grower
will Judas his dearest friend by enter
ing into a holding compact for fixed
price-and then sell out on his brother
farmer; that there is no such thing as
permanent organization possible
among farmers; that they are not bus
mess men-just plain simpletons; that
they always have been and always will
be easy marks" for the smart Alecs"
in all other walks of life.
1t is a lamentable fact that this
judgment has been profitable to the
"sure thing" gambler of the past.
Is it to remain true in the twentieth
century?
If it is, cotton growers of America,
it will be your own fault and nobody
can be blamed but yourselves.
It's up to you. What will you do
about it?
Legitimate Future Contracts.
The great plea for existence uttered
by all exchanges when they are cor
nered by legal investigation, and their
speciUus arguments before the courts
are riddled by the truth and plain log
ic is this: THE eXigencies of mar
ket demands call for an insurance or
hedge against contracts made to COW
er deliveries for months in advance"
This explains it all. For the benefit
of the spinner who supplies the weav-
er's loom with yarn, to enable him to
sell goods for future seasons, this sys-
tenn of insurance was invented. Be-
fore the days of exchanges the manu-
facturer took the risk" He either
bought the cotton outright, borrowing
the money from the banks to carry
it, or he speculated on being able to
buy as he wanted it from month to
month"; as advantageously as to 'cOv-
er his short contract" for future de-
livery of the fabrics.
Thus the hedge and insurance sys-
tenn was devised to make the grower
carry the cotton without interest in
behalf of the spinner, or to sell cheap
so that Intermediates could profit by