The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1919-07-22
COTTON MARKET MUST
RESPOND TO LAW OF
SUPPLY AND DEMAND

of cotton produced by the poor far
mer and thus to make the cotton
market truly respond to the law Of
supply and demand instead of being
controlled by what is distress cotton
thrown on a bad market the owner
is compelled to sell immediately"
says statement issued from the
headquarters of the South Carolina
Cotton Association today setting
forth the purposes of the organiza-
ton. The statement declares that
the association is working for the
economic freedom of the South.
"American citizens outside of the
cotton belt," says the statement,
should take a lively interest in these
Cotton Associations, organizations
moving rapidly forward toward COM
plete and permanent form, and look
ing to the best interests of the cot
ton producing states of the nation.
There is no reason whatever why
American Citizens of all parts of the
country should not feel the most
friendly interest in the success OF
this Southern organization. It's ulti-
mate success will react favorably
upon all parts of the country.
"The primary step being taken by
the associations looks to the organi-
cation of the cotton interest of the
South for mutual benefit. This does
not involve any animosity or hostAi-
ty towards cotton interests in other
parts of the nation. All who know
| the history of cotton will readily ad-
nit that cotton has enriched all who
have handled it except the farmers
who do the most grinding and ex-
hausting toll in raising of the raw
product. The reason for this I'M
reasonable state Of affairs is obvious.
The farmers of the South have never
been sufficiently organized to work
in farming for mutual benefit. Since
the war between the States they
have never had sufficient capital
available to enable them to store
their cotton and hold it for fair
price. Multitudes of poorer farmers
have been forced to sell their cotton
for whatever price it might bring as
soon as it could be gathered from
the field and ginned. The low price
for which the poorer farmers were
forced to sell their cotton set the
price for the entire crop then being
offered on the market. Had it been
possible to finance the portion of the
crop for which immmediate cash was
needed, a fair price for the entire
crop could have been obtained. The
object of the Cotton Associations is
simply to see to it that henceforth
capital shall be available for the fl
Lnancing of this portion of the crop,
and thus to make the cotton market
truly respond to the law of supply
and demand instead of being CONTROL
ed by what is distress cotton thrown
on a bad market because the owner
is compelled to sell Immediately.
"The association by financing this
portion of the cotton crop will tend
to end one of the abuses of the cot
ton exchanges, the manipulation of
the market by those interested in ar
tifcially depressing the price of the
bottom. When the producer who
needs cash for his cotton, can get
! this cash on easy terms Whlle mold
ing his cotton in fire proof, insured,
and weather proof warehouses, he
will simply refrain from selling when
the cotton exchange is artificially
manipulated so as to drop the price
of cotton below what the staple
should naturally bring as governed
by the demand and by the price OF
manufactured goods. The legitimate
interests of the cotton spinners OF
New England will in no way suf-
fer through this interferences with
the activities of the manipulation on
the cotton exchange. On the con-
trary the legitimate interests OF the
New England spinners will be fur
thered by the stabilizing of the cot
! ton market, which will save the spin