The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1911-12-12
DIR. ALEXANDER ON
COTTON HOLDING
President of the Union Points
Out Objections to the Plans
Proposed by New York FL
nanCierS
GROWERS STRONGEST
WEAPON, HOLDING COTTON

WEAPON, HOLDING COTTON
"If All the Cotton Now in the Hands
of the Grower Was Turned Loose
According to This Plan That We
Would See a Slump in the Price
at Once With Verv Little Prospect
of an Advance Until the Next Crop
Became q Positive Factor, in Fixing
the Price,"
To the Editor: I have read and
re-read the press reports Of the plan
devised by Southern representatives
and New York bankers to aid the
Southern farmers in holding cotton. I
wish I could give the plan my una.lal-
flied indor semenr I credit these
Southern representatives with honesty
and sincerity Of purpose in their ef-
forts to obtain for the SOuth's great
money crop a price that will leave to
the producer a fair margin Of profit
above the cost Of production. This is
probably the best arrangement that
could be made through Northern cap
italists. Cotton is strictly a Southern
crop and the North is not directly in
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Queer.
But it takes a lot Of money 20 move
the cotton crop. one is fur
nished directly or Indirectly by the
money trust, which centres in New
York. Wall street is directly interest
ed in securing a high rate Of interest
on this money; and no doubt is often
directly or Indirectly interested il
making it buy the farmers cotton at
as low a price as possible. There
fore, / am reminded Of the old pro-
verb. beware Of the Greeks bearing
gifts This may be an unjust insin-
uation against the bankers proposing
to put up the money and l hope it is.
Now let US the plan. 1t
to loan twenty-five dollars
per bale, on the payment Of a fee Of
one dollar per bale, without interest
for Il limited time; this limit being
January, 1913, when the contract must
be closed regardless of the price Of
cotton. The plan as reported pro-
vides further, that "the cotton is not
held nor taken from the Of
trade, out is placed at the best ad-
vantage"
1.-The grower is given the right to
designate the day Of sale prior to Jan
uary 1, 1913. and will participate in
any advance in price to h extent OF
three-fourths Of the rise in the mar,
ket.' The fund will be placed
through State committees named by
the Governor or Commissioner Of Ag-
riculture. These committees are-en-
powered to sell when cotton reaches
IL cents, and are compelled to sell!
when it reaches IS cents. Great care
is aiken to provide against a violation
of the Sherman Antitrust law. Big
business can violate the law for years
and years and when finally brought
before the courts and ~adjudged guilty
is let off without any penalty what
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method Of conforming to the law. But
the farmer must be careful how he
defends himself and his family, or he
will be snatched up before a court OF
Justice CO.
We will now analyze the plan a lit
tie further. The grower lays down
his strongest and most reliable Weap-
OF of defense when he lets go the cot
ton. Possession is three points in the
law and it's the thing SO far
as the farmer is concerned in this
fight for living prices at the hands OF
the spectators. Again; the grower
is taking all the risk. but receives
only three-foUrths of the profits. The
fee Of one dollar per bale which he
pays, is -four per cent interest on the
.$25 for twelve n 1T IS hardiy
probable that many of the contracts
will run twelve months and it IS a
conclusion that the one
dollar per bale fee will cover all ex-
penscs Of grading and handing ana
four per cent interest on the loan.
This is considered pretty good inter
est on such a large loan as is mere
contemplated. Add to this the one
fourth of the possible RI sc in price ana
it looks like a money making scheme.
1 believe if all the cotton now IN
the hands of the grower was tuIheu
loose according to this plan, that we
would see a slump in the price at once
with very little prospect of an ad-
vance until the next crop became a
positive factor in fixing the price. But
with the present balance OF me crop
In the hands of the grower ana d
stron. determination to let it remain
there. it becomes a strong leverage 10
Dry up the price.
Our home bankers and merchants