The Birmingham age-herald., 1908-03-11
RINGING ADDRESS TOCOTTON HOLDERS Situation Termed "A Natural Corner In Cotton" FARMER IS NOW MASTER By Standing Firm 1t Is Pointed Out That He Can Get His Price.
 How Banks Can
 Assist
FARMER IS NOW MASTER

The Farmers Union Guide, the of hcial organ of the Farmers Co-opera- tive and Educational union of Alaba- oama will contain the following edi- torial call in today's issue under the title "A Natural Corner in Cotton"
 Never before in the history of cot ton growing since future" speculation usurped the prerogatives of dealers in the actual staple has nature taken q hand in the game to the benefit of the planter. Repeated advice, warnings and bitter experience did not teach the cotton planter to reduce the acreage of his crop, and so the boil weeyil put in an appearance and de- stroyed enough of the plants to do for him what he refused to do for himself, giving him an object lseson that he cannot fail to understand.
 For the first time within memory the number of bales in existence is barely sufficient to carry the world along un- til the new crop is marketable. For the sirst time in history the bulk of the crop remainder is not in the hands of the middle man and speculator. The former has strings on part of it and the latter has done his utmost=to bull doze it out of the eXasperated frow- ers hands. Combined. they have not won, and they cannot win if the cotton producers who are now holding part of their crop will act promptly and in harmony. The proof follows:
 Sixty thousand bales of Arkansas cotton has been financed by Memphis banks. which advanced s2,250000, a basis of nearly $40 per bale, or cents per pound on warehoused cotton which is to be shipped abroad and sold direct to spinners without the intervention (and rake off) of the speculator or forWarder. No sound financier will question the absolute safety and desir- ability of such loans in view of ex- isting cotton stock conditions. Wheth- CT the cotton brings the price hoped for by those directly interested re- mains to be seen. but the lode star has been sighted. the compass pointed and a true course charted which the Guide urges all present holders of cot ton to follow, for it leads to the port of victory.
 Memphis bankers have set the pace and shown what can be done, and bankers in other cotton growing states will take their cue and promptly fol- low this lead when true conditions are clearly comprehended. By advancing $2,250,000 they have rescued 6O,O00 bales from forced sale. If Memphis banks are in position to do this and see the safe profit in this course, there are 20 other cities in cotton holding states whose average resources Will care for 20 times 60,000 bales if nec- essary.
 The statements of national and state banks rendered in February from Tex as, Louisiana, Alabama, Georgia, Ten nessee and other cotton states-freely advertised in the uaily press-disclose the fact that never before in their his tory have they carried so much actual cash-never have they had such sur plus of loanable funds.
 Texas banks with nearly $500000- GOO of deposits, can readily finance GOO O0O bales of cotton and be amply secured There is not now, nor will there be in 1908, the usual demand for money -l various lines of business. at least until it is time to handle the fal' crops Texas bankers may well 'oan 5 per cent of tn cir depositors' money $25,O00, ,O00-on the staple that they advertise so exultingly bring s20o,- 100000 a year to their cotton raisers, which immense sum goes through their hands
 Louisiana banks-New Orleans alone - can easily take care of 150,00O bales, which would require but $6,0oOOOo on the $40 a bale basis. Louisiana plant CTS hold that much at least.
 Georgia banks would not be incon~ Venlenced by lenulHS lN lSo o9 nun " the Memphis banks have loaned and thus take 120,000 bales under thelr protecting wing,
 Alabama is not one whit behind her sister state and can readily assimilate loans on 12OOOO bales, the probable hold ings of Alabama union farmers.
 Thus more than a million bales of cot ton can be kept off a speculative mar ket which is being abnormally depressed by all the wit and money power of the gamblers, who realize that their, golden goose" is dangerously ill-dying by inches This cotton can be held in the growers hands or warehoused and in- sured until foreign and American spin ners and the "philanthropic speculator realize that they cannot have their cake and eat it, too-must pay fair price for the actual goods, and that they will need every pound of it for their legitimate uses. to say nothing of covering their gambling short contracts.
 No honest man who is versed in the ways of cotton markets will attempt to deny the bald fact that if the actual cotton was out of the hands of the grow CT it would be "bulled' by the spec ulator to 15 cents or more in 50 days on