The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1912-01-02
WHY He WITHDREW
COTTON LOAN PLAN
Col. Thompson Explains That
His Offer is Not Yet Fully
Understood and Appreciat-
ed; Will Wait

ed; Will Wait
In addition to the statement printed
IN The News and Observers dis
patches YESTERDAY Col. Robert c.
thompson, promoter OF the plan to
lend Southern cotton growers s25 per
ba;e on this years crop. the rest to
be paid when the farmer wishes to
sell his product, has written to the
editor of the Columbia State in which
he says that. owing to the criticism
Of his scheme, he has decided not to
press II further for the present, but
still has hOpeS that the farmers Will
come to accept the plan. He declares
that he is not a Spectator and never
intends to be one.
The plan. if adopted, he thinks,
would save the South 100000 a
year by reversing the process OF sell
ing and sending the future market
up just at the time when the plant
ers wish to dispose Of their spot cot
ton. Mr.. Thompson in his letter says:
| have gone to much trouble and
some expense to put my plan before
the Southern people. It is not specu-
lative n it has no connection with
speculation. The situation is this:
The South has had an abnorraaliy
large crop. Unless there be an alb
normally large consumption q surplus
must be carried over which will be 8
cloud upon prices all ext year, and
perhaps the year after, unless an I'M
usually small crop permits the sur
plus to be absorbed during 1912.
,anifestly, therefore. it is for the in
tereSt Of the South to secure an abb
normally large consumption. This
cal only be done by selling the cotton
to the spiHners at a low price. But
n "a fa rmar naturally 9 q uc- <sNJhora Go
| come in? 1t is all very we'll to give
tho s%pinners a low price, but what do
; l get for the money | paid for fertl-
liZer and for he hard work done by
me n m family"
, For some years it has been the
habit OF the spinners TO buy cotton or
call" That is, on an agreement at
price TO be fixed some time in the fu-
ture. The merchants who sell this
, cotton protect themselves by buying
actual cotton in the South and selling
, contracts against it on the exchanges
= These operations always tend to pu
: 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 hi
price, and as he does the merchan
> sells his actual cotton and buys bacl
, the cotton he has sold. This tends t.
= put up the price Of cotton, and tn
- operation, as a whole, enables tn
merchant TO get his cotton cheap am
sell it dear. We propose to revers
this operation, for the BENEFIT Of tn
afrmcr. by buying cotton on call
from him and buying contracts O
. the exchange. When the farmer FIX
es his price we sell these contracts
Clearly there is ABSOLUTELY no specu
= lation on our part, nor does our pla.
u nave any relation or connection wit
II :. citation. It is a lean bushes:
f. ! ~e1,r ~Sra- ~ ~~,o -N- ~.x-;,
~ the farmer the opportunity Of carry
, ing his cotton into next yea at a yer
small expense. and if acreage is re
l. duced and a reasonable crop pre-
n duced there is a certainty of gettin
~ very much higher prices than no.
he prevailing.
e. It was, CT course, to the interest {
many selfish persons to misrepreser
this plan, and apparently they HAY
he induced the farmer to believe thu
to the plan was not in his interest.
st have therefore practically abandone
IS. the idea Of going any further with
OF this year; but if the farmers Wi
p will see that in it lies the power
n materially benftting themselve
20 Once they decide to maxi use Of
m they will find all the cotton rnerchan
of ready to take it up. Upon you, al
by men like you, must rest the duty
CAuNtAAA'lS INC tSQ4iAA. IL H. via dAo-
at this method Of marketing their cro]
Is and handle them properly. it will
to worth S5O,00o,G00 a ear to Il
OF South.
May / add one word about myself
he I am not d speculator and never i
nd tend to be one. I say his because
,r- believe 1 have been misrepresent.
as in the South. and / care sufficient
Of lol the Roou OPINION OF my Ie!io
ed cita1eis u WISH - cor1ect sOcn d IN
understanding.
Additional Statement by Color
90 Thompson.
in Washington. D. c., Dec. &c
of Robert Al. Thompson, Of New Yor
ie- mead OF the syndlcate which propOs
he MO &oO.oVV,ope Tor the purpo