The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-12-30
ABANDONS COTTON SCHEME.
COL. THOMPSON WRITES OF COT
TON LOAN PLAN.
Thinks That If Farmers Will Studv
His Proposal They Can Derive
Benefit for Next Year.


thompson, promoter of the plan to
lend Southern cotton growers SIS per
bale on this years crop, the rest to
be paid when the farmer wishes to
sell his product, has written to til
editor Of The State a in
he says that, owir Ae cx
of his scheme, q Adeal
pre-, press it furf'
come +, ~ the pl,
that not a speca
-. DIS to be one.
e plan, if adoptd
buld save the South s
year by reversing the pr'
ing and sending the futur
just at the time when i
wish to dispose Of their ST
Col Thompson's letter fd
To the Editor of The State
Some one has sent me
your paper Of December 16
ing the editorial Turn on the
1t is so broad-minded and fair
can not help writing you. I have
to much trouble and some expen!
put my plan before the Southern
pie. 1t is not speculative and il
no connection with speculation.
situation Is this: ~
The South has had an ahnorKss
large crop. Unless there be an -
normally large consumption a SURF,
must be carried over which will bc>21
cloud upon prices al next year. ariSz
perhaps the year after, unless an un-S
usually small crop permits the surplus
to be absorbed during 1912. Mani
festly, therefore, It is for the interest
of the South to secure adlabnormally
large consumption. This can only be
done by selling the cotton to the SPIN
ners at low price. But the farmer
naturally says; Where do come IN !?
1t is all very well to give the spinners
low price, but what do I get Tow st6s
Ma q -
the hard work done by me am tmy
family?"
For some years it has been the
habit OF the spinners to buy cotton oa
Call" That is. on an agreement at q
price to be fixed some time In the ft,-
ture. The merchants who sell this
cotton protect themselves by buying
actual cotton in the South and selling
contracts against 1t on the exchanges.
These operations always tend to put
down the, price of cotton at the begin
ming Of the season. Later in the year
and after the farmer has sold his cot
ton, the spinner begins fixing his price,
and as he does the merchant sells his
actual cotton and buys back tne Cot.
ton he has sold. This tends to put up
the price of cotton, and the operation.
as whole. enables the merchant TO
get his cotton cheap and sell it dear.
We propose TO reverse this operation,
for the benefit of the farmer, by buy
ing cotton on cali from him and
buying contracts on the exchange
When the farmer fixes his price we
sell these contracts. Clearly there is
absolutely no speculation on our part,
nor Goes cur plan have any relation
or connection with speculation. 1t is
a clean business. assuring us a small
profit and giving the farmer the or-
portunity OF carrying his cotton into
next year at small expense, and IL
acreage is reduced and reasonable
crop produced there is a certainty OF
getting very much higher prices than
now prevailing.
q. 1t was, Of course. to the interest of
ssspny selfish persons TO misrepresent
SsSSsaplan, and apparently they have
inGaSs--ss.he farmer to believe that the
plan was not in his interest I have
therefore practically abandoned the
idea of going any turther with it this
year; but il the farmers will think
over and study TIE plan they will see
that in it lies the power Of materially
benefiting theIsselves Once they de-