The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-09-07
Lessons OF The Bull Campaign.

immense fortunes which the leaders
of the bull campaign in cotton have
made. and it is generally thought
that these fortunes stand for moth
ing more solid than a lucky guess at
the course of the market. But, as
matter Of fact, no view could be
more erroneous. In the first place.
the bull campaign was primarily bas-
ed on the belief that the crop Of
1903 would, at best, be far below the
worlds needs, and this belief was af-
terward borne out by the figures. Yet
no clique of mere gamblers could
have lifted the price to the famine
level by accommodating enormous lines
of contracts, for such clique of
gamblers would have overtraded
themselves and paid the penalty
which overtrading invariably brings
This campaign has been fought along
quite opposite lines, as witness the
ease with which the bulls took actual
delivery of seven hundred thousand
bales and proceeded to distribute the
stuff among the mills. To "mer-
chandize" a commodity on so grand
scale requires not only vast amounts
of cash, but also most expert knowl-
edge of the business. Intricate
problems of banking, insurance and
credit arise and these problems must
be solved with absolute precision, else
the outcome of the campaign will be
Waterloo, instead of an Austerlitz
Time and again have bull cliques
collapsed, when they came to deal
with the cotton itself. Mr.. Sully, for
instance, went bankrupt, at the very
moment when his triumph seemed
sure. Eight hundred thousand bales
Of contracts may be carried through
ordinary fluctuations with a capita!
of eight million dollars. whereas sixty
millions are needed to pay for the
same quantity outright. The bull
clique found the sixty millions with
ease. as they could not have done, II
they had been spectators, pure and
simple.
Consider, again. the indomitab BILE
pluck with which the Southern op-
orators withstood the assaults Of the
allied bears who sold and sold, with
out regard to price or statistics, in
the hope that sheer weight of cash
would ultimately decided the issue.
The whole atmosphere of the New
York Cotton Exchange was hostile
and some of the weapons used were
unworthy Of merchants. False ru-
mors were circulated and the
wires were kept hot with pro-
phecies of panic. And, indeed,
these tricks had a certain mo-
mentary success. for there was
decline Of fully three cents from the
highest point Of the first boom and
overdaring bulls were "ginned out"
in the process. But the Big Four
stood to their guns. as veteran
army does, and took their punish
ment like men. In the end, the or
iginai facts told and the remanant Of
a famine-crop brought famine prices
1t must be remembered that each
grade and half-grade, from Fair to
Good Ordinary, is tenderable on con-
tract. The bulls thus came into pos
session Of a stock which had almost
as many hues as Josephs coat. Now
the bulls had to know where each
quality would find the readiest outlet
and keep in intimate touch with ulti-
mate consumers. The mill which
spins particular grade would not
buy another. at any price at ALL The
details and labor essential to the re-
distribution of 100000 bales cannot
be imagined by people who have not
passed their lives in the trade. New
ertheless, the thing had to be done,
for some mills had a surplus which
was drawn to New York, while 9TH
ers had to buy in that market, or
close their doors. Bagehot has well
said that a million dollars hidden
away in innumerable stockings and
cupboards, is of no use to commerce,
though the same sum quickens en-
terprise and industry. if it be on de-
post with the bankers of a metro
polls. So, too, it may be said that the
eight hundred thousand bales which
the bulls have handled would have
been comparatively useless, If they
had been scattered over the earth in
small lots. Thus we see that the bull
clique has performed an economic
function and we may assume that tho
prOfts has not been excessive, as
measured by the toll and the risk.
After all, the real benenciarics are