The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1916-12-23

tracts.
Their profits are certain, for their
selling prices were based upon the
certainty Of higher prices for cotton.
as the result of the short crop, the
increasing demand for cotton goods
and the inflated conditions existing in
lines of business. The greatness
of their profits was limited only by
the amount Of cotton that could be
at comparatively low prices
before the cotton producers realized
the situation.
To cotton farmers, who could
find no sale at ten cents for their cot
ton eighteen months ago. fifteen cents
seemed a big price this fall and they
sold freely as rapidly as they could
get 1t ginned and on the market. But
the demand was SO great and the
SO keen among the buy
ers for American mills and for export
that the price was forced upward
cent by cent to the twenty cent level.
II the farmers had been as we'll in
formed and as we'll organized Is the
mills. they could have dominated the
situation and could have fixed the
market price themselves. But being
neither informed nor organized the
mills profted by their ignorance and
on all the cotton purchased early in
the season they have a tremendous
profit assured.
They paid up to twenty cents Il
pound and there was no break in the
upward movement until the twenty
cent level was passed and the GIN
ners' report showed an excess Of two
hundred thousand bales above the
minimum estimate OF the government
crop estimators. Then the organiza-
ton and cooperation Of the mills and
the professional traders got in it's
work. The buying support was with
drawn from the spot market and the
bear SPECTATORS hammered the future
market for all they were worth.
pikers and bucket shop
traders every where were either wiped
or made frantic haste to unload
their futurs contracts. 80 as to save
some Of their paper profits: and the
bottom was sat ef the future market.
Thus. as asserted at the outset, the
existing situation in the future mar
ket Is clearly seen to be the result
of speculation, and Is illogical and
unnatural.
Cotton IL worth no less today than
1t was three weeks ago. the supply is
no larger. the estimated total crop Is
only q trifie greater than the previous
A4AWetSH3 etyslsnt.to fenr daxe .cop-
demand has not fallen df. The mills
are still sold months ahead. they r
still running overtime and production
cannot catch up with the demand FOR
manufactured product; consequent
ly the mills will need and must have
oil the cotton that will be available
until the next crop comes on the
market. Therefore. the holders of
spot cotton should not catch the in
lection Of the panic that now pos
sesses the future gamblers. who have
been trying to get rich quick on a
shoe -string.
Cotton at twenty cents is not only
high. but Is. to the contrary, in
with other great staple
the cheapest thing In
the world. Cotton to be on a parity
with other staples should be selling
today at more than twenty-five cents.
If the unsOld remainder Of the crop
could be held on the farms or locked
up In warehouses for a month or six
weeks and not a bale turned loose, the
owners Of this cotton could fix their
own price--provided they doled 1t out
to the mills slowly and miserly and
only as the mills paid the price de-
handed.
1t Is a matter Of common knowl-
edge now, and it has been stated
more than once by SO we'll Informed
authority as the Wall Street Journal,
that the mills need. can spin at a
profit and must have all Of the cot
ton available from this crop, and
that. at the present rate of consump-
ton. the world will be on the verge
of a cotton famine before the crop Of
1917 Is on the market.
In these circumstances, why should
those who are holding cotton be-
come weakened INC panicky? Mon
ey Is plentiful. cotton in a warehouse
is gilt-edge collateral, and, thanks to
the Regional Reserve Banking Sys-
tenn, interest Is low; which conditions