El Paso herald. (El Paso, Tex.) 1901-1931, 1912-06-27
Valley FARMERS
\ A BIC BEAN CROP
TEXAS FARMER To
HOLD ITS COTTON
Arrangements Made for the
State Bankers to Finance
Texas Cotton Crop.

Austin, Texas, June 27.-It is claimed
by Peter Radford, president OF the
Texas Farmers union, that the plan IN
augurated by the executive committee
of that organization for a systematic
marketing of cotton on the part OF
farmers of this state promises to meet
with general support. The crop Will
be financed by local bankers to large
extent arrangements to this effect
having already been made in a num-
Der of the principal cotton producing
counties. The warehouse system OF
the Texas Farmers union, will accom-
mOdate large quantities OF cotton, ana
with advances made upon the crop by
banks, the farmers will be able to hold
the staple and dispose Of 1t in man.
ner that viii lead to the obtaining or
the best possible prices.
AS 4 general proposition, Texas BANK
ers have not heretofore encouraged the
holding of cotton. Several reasons
are given for their attitude on this
question. Bankers claim in the first
place that the average farmer is great
" injured in his everyday business at
fairs by the gambling element that
enters into the holding of cotton. As
long as the cotton is on his hands ne IS
not fitted to do much else but watch
the market 1t is a proved fact that
nine farmers out of 10, when they hold
their Gotten for better prices, make
daily trips into town 20 find out the
condition of the market Their minds
and until their crop is sold they give
little attention to other farm affairs II
is also held by most bankers that from
a revenue producing standpoint one
year with another 1t is to the advan-
tage of the farmer to dispose OF his
crop Immediately after II is gathered
Various items of expense are TO be
taken into consideration when the bales
are held. Insurance, warehouse
charges and loss of value through
shrinkage are some of these. Another
thing that is contended by bankers and
merchants in the argument against
holding cotton is that unless the farm
er dispOses of enough of this crop i'm
mediately upon gathering il to meet
his outstanding and probably overdue
accounts ne secures extensions OF his
liabilities and then uses the money tnat
he obtains from the sale Of the product
for other purposes leaving his ac-
counts to run over another year.
Cotton is the Zig money crop OF Tex
as and the south. Early marketing IN
sures a better gin business than where
the product is held, even If better
prices are obtained later on in the sea-
son. 1t is stated by Texas bankers
that while they do not encourage the
holding of cotton they are always Will
ing and ready to advance money Tor
that purpose where they know the
farmer is in proper condition to wait on
the possible rise of prices, but to apply
the rule generally is an unWise prac-
tice, il Is claimed
- 1t is the pIanToI the Farmers union
10 handle and market the crop of many
of its members through a central sell
ing agency. Besides this plan that IS
being promoted by the Farmers union
there is a quasi public project which
the Southern States Cotton corporation
is actively organizing IN Texas anu
other cotton producing states 1t is the
purpose of this company to arbitrarily
fix the price of cotton at 10 cents per
pound 1t is generally regarded, how
ever, as an impracticable plan and
farmers are giving il comparatively lit
IL