Okolona messenger. (Okolona, Miss.) 1900-current, 1909-05-19

10 southern Industry. Inc cOLlon cruz
like every other crop. should be mar
keted only as It is needed. No manu-
facturer would think OF selling his out
put In a short two or three months.
"The farmer should be on an equal
business plane with the manufacturer
and every other producer. Until he Is,
he will lose himself and lose to the
south. hundreds Of millions OF dollars
unnecessarily each year.
NOW 60 back to the individual
farmer we were using for purposes OF
illustration. He deposits his bale in a
warehouse that is bonded and abso-
lutely as responsible to the COM
mercial world as is surety company
or an insurance corporation.
HE accepts for this bale a certih-
cate certifying to his ownership of the
Gotten.
The backing of reserve Of mil
lions of dollars, and of all the stock
holders, is back of that certificate.
1T will be as full protected as
United States currency.
1T represents the highest possible
class of collateral for loans.
with the security thus outlined
supporting it, he will have no trouble
whatever in borrowing enough from
his banker to meet his pressing in.
debtedness, holding his cotton in the
warehouse until such time as it can
be marketed at price commensurate
with its ultimate value to the business
world.
Farmer Owns the Equity.
In borrowing this money, he does
not surrender the equity in his cotton.
1t is his, to sell whenever he pleases,
with the plain business exception that
the certificate he may have used as
collateral for the loan is prior lien
upon the bale which must be satisfied
when that elimination is reached.
Thus the banker, or loaner, is safe
guarded equally with the farmer.
know of many banks and lenders of
noney putting out large sums to-day
upon less reliable security.
"'The amount the farmer can borrow
on bis certificate will, of course, vary
with localities. 1t will be determined
automatically by the amount of cotton
his certificate represents and ruling
market conditions.
Certificates underwritten in the
iron-clad manner 1 have described
would eagerly be accepted by the f.
nanciers both in this country and in
Europe, and by mill operators both
| in this country and in Europe. They
! could be subjected to rediscounting
without affecting their value to or pro-
lection of the original holder"
Where Profit Comes In.
where does the profit of the men
financing this plan come in?" was
asked Mr.. Sully.
1.-THE company thus formed" he re-
piled, whether wholly of outside CAPT.
tai or whether divided between out
side and southern capital, would dis
charge the function, and be paid for
discharging the function, of the inter-
vsntion in any large or small business.
ut would be paid nominal fee for
handling each bale in the warehouse
and for insuring the validity Of the
certificate, just as the bonding com.
panies in every business avenue are
paid premium for issuing or insuring
bonds and securities.
"The company would not own the
cotton. The warehouses would not
own the cotton. The farmer would
have his equity In 1t, subject, OF
course. to the prior lien Of his GER
tificate, until the cotton was sold.
There would be NO chance for man.
ipulation and no desire for manipula-
ton on part Of the guaranteeing con.
Germ. The books and the quantity Of
cotton on hand would be open and
known to the world. There would be
no secrecy, no mystery.
Warehouses Must BE Erected.
at will be essential, Of course, to
provide sufficient warehouses for the
housing of this tremendous quantity Of
cotton. Already the south owns almost
enough OF them. It will be compare
lively inexpensive to erect enough to
complete the quota. Thesurplus remain.
ing will 60 into the guarantee fund.
making absolutely secure these Ger.
tificates.
THE Transformation would work
benefit to the southern warehouses al.
ready in operation. It would throw
more business their way at the same
rates, and create absolutely new bust.
| ness.
"Crudely estimated, the cotton crop,
as marketed In the present haphaz-
ard fashion, brings into the south be-
tween $3.50. 900 and 100000. 900 .
| year.
"Is II worth while to the south to
increase this sum BY $4,000. 900 to
$3.50, 600, OO0f
That is what the plan contem-
plates, and 1t is simply question Of
arithmetic, as you can see with pa
per and pencil in one minute.
The price such additional wealth
would cost would be but a nominal
fraction of the gain. The profit Of
the project for good and all It is only
one year. would several times finance