The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1909-07-29
A GREAT SCHEME
TO KEEP UP PRICES OF COTTON
BY HOLDING 1T.
Backers Believe That 1t Will Take
Away the Prestige Of New York
and Liyerpool as Markets.

months Lie pltu AoA 'hS
| ment Of central ware houses at New
Orleans, where cotton can be tried
and handled in the South, was made
public last week by w. B. Thompson
president of the New Orleans Cotton
Exchange and chairman of the COM
mittee Jointly by the Farmers Union
and the bankers and merchants or
New Orleans. The project in intend
ed to eliminate New York, Liverpool
and other European ports from the
cotton market, to restore to New Or
leans. supremacy as the cotton capi'
tai of the world, to help the farmer
to retain control of their cotton and
to keep its price up.
The scheme is not wild and Wis
ionary one like the former central
ware house project of the Cotton
Growers Association, but is practical,
we'll backed, has the support of the
Bank of New Orleans, Of the Louis
lana State and the New Orleans city
| administrations, and Of practically
all the commercial interests of the
city, as we'll as the public generally.
Some months ago the Farmers
Union held its annual convention I'm
New Orleans. The members were
quite frank in their declaration that
they believed that the New Orleans
and New York Cotton exchanges
were responsible for the low prices
of cotton, and they announced their
purpose to support the anti-future
and anti-exchange legislation which
had cropped out lately in the South
ern States, and which had hit New
Orleans so hard.
This movement has reached It's
height in the resolutions now before
the Georgia Legislature, asking the
States representatives in Congress
to demand the Government and the
postofRce department that the New
Orleans and New York Cotton e1-
changes lie denied he use Of rae
mails on the ground that they arc
| only gambling concerns. The New
Orleans Exchange at the time Of the
conference was In special danger. for
the Constitution of Louisiana declar-
es that speculating In cotton futures
Is ags,rst public policy aud instrucss
the Legislature, to pass the necessary
law to break up this practice.
The Constitution was framed in
1888, eleven years ago, the farmers
being in control Of the convention
that framed it. The Legislature has
never carried out these instructions,
although the question has been
brought before it at every session,
but at the last session 1t looked as
though the blow would fall on the
Cotton Exchange unless the good
will of the farmers, could be secur-
| ed.
1t was at this time that the Farm
ers' Union met in New Orleans and
made overtures to the New Orleans
Cotton Exchange and New Orleans
cotton merchants. Why, it was ask
ed, could they not unite interests,
the merchants guaranteeing the
farmers against low prices and there
by capturing for New Orleans the en-
tire control of the cotton trade?
The idea found instant and great
favor. Partly from the threat of
hostile legislation, partly from the
promise of better business, the mer-
chants and bankers greeted the
farmers and the two met in frater-
nal gathering at which it was decid-
ed to forgive the past and to work
together for the future.
The merchants and bankers were
to find some way by which the cot
ton growers could hold their cotton
without too great burden and ex-
pense to them and thus force better
they were also to find all the neces-
sary money to put the holding pro-
ject in practical operation, in other
words, to prepare working plan.
The Cotton Exchange could not by
its charter take any action in the
matter, but it's president, Mr.. Thomp-
son, has been the active spirit in the
whole affair and has worked out a
scheme which is declared by all to be
feasible and for which the money
has been p,omise1 and which will
unquestionably be tested.
The cause of the low cotton prices,
Mr.. Thompson asserts in his report,
is because the farmers are compelled
by their exigencies and needs to sell
their cotton as soon as they had pick
ed it. It was rushed to market with
great speed and sold at once in order
to realize, and it is shipped at once
to New York or Liverpool, where it
| is held in stock until the manufac-
turers reed it.
If it were held in this country, if
the South became the distributing
| centre instead ,of New York and
Liverpool, and the cotton could be
sold as it is needed instead Of praC-
tically at forced sale, better prices,
it was argued, would prevail. The
Southern farmers had several times
tried to hold their cotton for higher
prices, and the efforts Of several Of
| the recent organizations have been