The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-10-13

agance this fall with money borrow
ed on cotton held for a rise If cheap
er money is going to learn us to be
more careless than we are already,
then it will prove a curse instead of a
blessing.
l do not know what pressure has
been brought to bear on the banks
but 1 am inclined to think it is score
three for the union.
If they wish to make it effective in
cotton holding movement they must
do as the Lancaster Farmers Union
Bank has done: have notes drawn on
demand with interest to date of set
tlement. and not discounted for some
fixed time as is now the custom. One
Of the dangers Of the discount system
In holding cotton Is that the average
farmer holds his cotton for the time
his note Is sdiscounted, and then sells
regard ass Of the price. If on the
other hand he only had to pay for
the money while using 1t he would
not let good opportunity pass to sell
his cotton. / think when our bank
ers look into this phase of the sub
ject they will see that the small diff
ference to them will he more than off
set in a better business system. 1t
seems to me that In holding an article
of the market for better prices, the
end sought will be sooner attained, If
the time Is indefinite, than IL some
time is fixed--in the latter case the
buyers merely have to stay off the
market until the notes are due, to buy
at their own prices.
One other feature OF the subject
was impressed on me very frocibly
last year when a committee 9of the
Farmers Union interviewed the bank
presidents of Sumter to find out what
aid they would give US to keep cot
ton of the market at the ruinous
prices then prevailing. 1t is to never
loan nor borrow at too close figures
to the market price-for two rea-
sons: When loaned up too close it's
value there is too much temptation -
spectators to try to depress the price
to point where the banks will have
to call in its loans and the cotton
will have to be sold unless the own
er Is able to put up additional secur-
ity. The other is that so many more
bales Of cotton can be kept off the
market with given amount Of
money. If less is loaned on each bale.
AS have repeatedly said there was
never weaker cotton grown than cot
ton in warehouse upon which near
ly its market value has been loaned.
To those Of our farmers who ex-
pect to take up with the banks offer
let me urge YOU to borrow as little as
possible, that there may be money
enough to go around without Grip
ping other businesses, and that your
cotton may be in the strongest pOssi-
BILE position next to actual ownership.
In this connection l wish to say that
FARMERS Of this section owe not a lit
tie of their present prosperity to the
aid of the banks which loaned them
money directly on the same collater-
al their OWN that the merchants
mad been using to sell them goods at
credit prices--and in that it taught us
better business methods and more of
the actual value of money. "spot
CASH in transaction. Closer rela-
tions still will be to the mutual in
terests Of bankers and farmers and
this offer OF per cent. money is q
step in the right direction. It also
means. fellow farmers, that If we do
not abuse this offer we will be able
to borrow for next years operations
| at 8 per cent.
/ doubt very much, If any great
| amount Of money will be loaned or
| cotton, for the good picking weather
| and current prices have paid more
debts than probably ever before this
early In the season and there Is less
| cotton behind to hold. E. w. D.