The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-11-29
Farmers SHOULD BEWARE.
NEW YORK SYNDICATE PLAN
NOT SAFE.
II is Not Holding Plan for the
beneht OF the Cotton Growers But
Speculative Scheme that Will
peprcss The Price Still More and
Enrich the Syndicate.


ei.oo for handling. ETC." giving the
farmer three-fourths of the rise in
price above the market on the day
the cotton was turned over to them,
and putting the cotton into the ordi-
nary channels OF trade. presents some
interesting possibilities.
IL the English language means
anything. putting into the ordinary
channels OF trade" means. of course,
selling 10. Say cotton Is selling In
Sumter on the day the syndicate"
takes II ~ nine cents: the farmer
turns n over to the Syndicate at FIVE
cents; he gets $500. The Syndicate
puts II into the ordinary channels
of trade" and takes down $500
$4,000 moro than Is advanced the
farmer. and In addition pockets the
dollar for Handling. etc" 1t can
then buy tho cotton on the Exchange
putting up this dollar Of handling
money TO cover the first twenty points
Of margins. The Syndicate Is then at
no more expense until the farmer
gets ready to sell. unless Il should
have TO put up some more OF the
5000 surplus as margins In case Of
q drop. When the farmer says sell,
Il disposes Of itn contract. and turns
over to the farmer three-fourths Of
the profit above nine cents. also the
$4,000 margin between the five cents
advanced and TIE market price on the
day IL was put into the ordinary
channels OF trade."-less. Of course
shs dollar for handling.
In other words. the Syndicate pro-
poses to advance $4,000. 900. which
would handle 100000 bales OF cot
ton. IL puts these bales On the mar
ket and takes down $4,000. 900. re-
imbursing itself for the money ad-
vanced to the farmer, and having
forty milliop~ of the farmers money
70 use until the farmer gets ready
to sell. Tae ss.ooo.ooo Of handling
money will buy that many bales ION
the boards" II cotton should 20
much below nine cents. the syndicate
might lose the use OF some Of Tho
forty millions OF the farmef 3 mon
sy. n the farmer decides TO sell az
less than rine cents. ne stands ali
The loss n II goes above nine cents
NE syndicate gets one-fourth Of the
proht
The farmer could follow TIE same
method on his own account to con-
siderably better advantages. II he
sells his bale at forty-fve dollars he
can advance himself twenty-five
dollars. put the other $4,000 in a
savings bank In his own town where ,
" Will do himself and the commun-
ny good. and by next August IL will
have earned the dollar to pay him
self the handling money, unless cot
ton should go down and he has TO
put 70 up to protect his margin. IL
cotton should go up he would get all
the profit at an expense of fifteen !
cents per bale as commissions to tie
cotton exchange broker.
but what would be the effect on |
the market Of putting into the ordi- !
rary channels OF trade" 1000. 600
bales Of cotton belonging to those
who are now holding. In addition TO
the distress cotton? What too IL the
syndicate should decide to use the
forty millions OF the farmers money
to bear the market In addition 10 the
tremendous blow that the 1000. 900
bales would give II. with the
end ~ Wow Of buying back those
contracts for themselves at consid-
erably below nine cents?
Hero I'm Sumter. the banks are
advancing seven cents rrund on
. cotton. and the cotton is being held
OF Of the market In warehouses. safe
~ insured whore II cannot get into
tho ordinary channels II trade.
Tn" f1rmer can go and look az his
cotton. n he wishes TO. and there -
no trouble about n being there when
he wants II.
The putting az two million bales on
'he market az this time. taken from
those who intend to hold for higher
prices, would absolutely break the
back Of tho holding movement and
would probably eliminate all chances
of getting above nine cents for this
crop.
Further. after this cotton has been
put into the ordinary channels OF
trade. what security has the farmer