Lower coast gazette., 1909-04-24
NUM BER II.

hClSA I'LL 10 ~ 10
facturer would think OF selling MS out
put in a short two or three months.
1.-The farmer should be on an eQuai
business plane with the manufacturer
and every other producer. Until he u.s.
he will lose himself and lose to the
south, hundreds Of millions OF dollars
unnecessarily each year.
Now 20 back to the indlVldual
farmer we were using for purposes OF
illustration. He deposits his bale IN d
warehouse that is bonded and aDso'
lutely as responsible to the com
mercial world as is a surety company
or an insurance corporation.
He accepts for this bale a certln'
cate certifying to his ownership of the
cotton.
"The backing Of a reserve OF NIL
lions of dollars, and of all the stock
holders, is back of that certificate.
1T will be as full protected as
United States currency.
ut 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 IRON
t his banker to meet his pressing III
debtedness, holding his cotton III the
warehouse until such time as 1t can
: be marketed at a price commensurate
Y with its ultimate value to the business
world.
J. Farmer Owns the Equity.
"In borrowing this money, he does
S not surrender the equity in his cotton.
It is his, to sell whenever he pleases.
e with the plain business exception tnat
the certificate he may have used az
e collateral for the loan is a prior lien
l. upon the bale which must be satisfied
n when that elimination Is reached.
H. Thus the banker, or loaner, is safe
le guarded equally with the farmer.
s. know of many banks and lenders OF
Is money putting out large sums to-day
oF upon less reliable security.
"The amount the farmer can borrow
on his certificate will, of course, vary
with localities. 1t will be determined
a automatically by the amount OF cotton
OF his certificate represents and ruling
market conditions.
ln' Certificates underwritten In the
Is iron.clad name I have described
'ie would eagerly be accepted by the d.
nanciers both in this country and in
OK Europe, and by mill operators both
,es in this country and in Europe. They
ne could be subjected to rediscountine
without affecting their value to or pro
eo' lection of the original holder"
Where Profit Comes In.
- where does the profit of the men
MN financing this plan come in" was
asked Mr.. Sully.
the "The company thus formed" he re
piled, whether wholly of outside CAPT
ntil tai or whether divided between out
IA. side and southern capital, would dis
charge the function, and be paid fof
r,v d%ischarging the function, Of the inter
vention in any large or small business
1T would be paid a nominal fee fol
nan handling each bale in the warehouse
Who and for insuring the validity OF thu
certificate, just as the bonding com
am panies in every business avenue arr
ora paid a premium for issuing or insurinl
tho bonds and securities.
"The company would not own thu
ooo cotton. The warehouses would no
Two own the cotton. The farmer woult
=. have his equity in it, subject. o
ron. course, to the prior lien OF his Gel
40 tiicate. until the cotton was sold.
The There would be M chance for mar
ho;r ipulation and no desire for manipuls
Ios+ zion on part of the guaranteeing COZ
Germ. The books and the quantity
IA cotton on hand would be open an
,,o, known to the world. There would b
,eati. no secrecy, no mystery.
their Warehouses Must Be Erected.
TT will be essential, Of course,
with provide sufficient warehouses for tn
the housing of this tremendous quantity
ingle cotton. Already the south owns alm0
enough OF them. It will be c0mpar
;ates. lively inexpensive to erect enough
|an?" complete the quota. The surplus renal
ing will go into the guarantee fun
!, an. making absolutely secure these &C
arm tiicates.
np to "The transformation would wO
which benefit to the southern warehouses
ck of ready in operation. It would thrt
indis. more business their way at the sar
rates, and create absolutely new bu
Is a ness.
ough- "Crudely estimated, the cottoh ci'
lmber as marketed IN the present hapn'
the ard fashion, brings into the south
been tween $3.50, O0O, 900 and $500, 900 900
zee of year.
+ con- rs it worth while to the south
10 dis. increase this sum by $3.50, 600, 900
,rmity $3.50, 00O, 900?
mand. "Iha Is "nat the plan coh'e
IN, plates, and it is simply a question
r sur. arithmetic, as you can see with a
under per and pencil in one minute.
1.-THE price such additional wea
ale of would cost would be but a nomi
u. the fraction of the gain. The profit
anters the project for good and all. 1t is o
d that one year, would several times III
8 pro. amazing that the thing. consider
its purely business aspects, has
i'm for been done long ago.
,al in. Turning loose this tremendous s
I'd the into the soutn nua YOU'D not Q
: rule, give new meaning and development