The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-12-11
GAMBLERS FAIL
DELIVER COTTON

Il
vtaDnamaker, president of the American
cotton association, charges in a state
nant made public here today that
Contracts for around one million bales
NJ short staple cotton. sold last spring
far delivery this fall at from % to %
rcnfs a pound remain untitled. He also
sharges that an enormous amount of
lotion sold in New York for fall de-
livery at even lower prices also re-.
main undeliyered.
credit for the predicament in which
n, SAYS the spectators find them
selves is claimed for the American
cotton Association by Mr.. Wanna
maker. ut is conceded" he says, that
as A result Of the work done by the
sneficaa Cotton association that the
rrlco OF cotton is much higher today
ihan it would have been had the ASSOC
,fttfon not been formed Heretofore
ihe cotton crop has largely been sold
inv the spectators before it was pro-
dgrcd. If the prices were below the
nrices which cotton was bringing in
iho fall of the year. combinations were
formed and prices beat down so that
Inc speculators practically controlled
t1e market and the life toll of the pro-
,Iurer was used as a football of the
gambler.
To-day as a result of the work of the
american Cotton association this con-
5ftl0r has been absolutely reversed.
Tho bear spectators find themselves
unable 70 secure cotton TO fill their
contracts. The strength of the cotton
association was underestimate by
fhcfn and as result they are caught
in f trap and for the first time in sixty
years have found it impossible to ex-
trIrate themselves by beating down tfre
price Of cotton. For the first time the
cotton producer is posted, he is master
If the situation. He realizes that paper
cotton, that is cotton sold on the New
York exchange, cannot be spun.
More warehouses have been built in
the South in the last five months than
81 any time since the war between the
states. The cotton producer, after the
war between the states. first produced
cotton on credit, in the way Of mer~
e't3ndise advanced to him; next he went
a step further and secured a small
amount Of cash from the advance mer-
chant, all the while being urged to
rIant all the cotton possible, this be-
lns all the credit he had Next he
rushed TO higher ground and sue
caeded in borrowing small amount
from the hank for the making of his
crop and then went one round higher
and was able to borrow money on his
cotton stored in the warehouses. To-
dav he must warehouse his cotton. ar
range for the financing of it SO that he
viii hold control of his cotton until it
reaches the hands of the manufacturer,
thus removing an army OF unnecessary
middlemen,
AT the meeting of the South Caro-
lima branch of the American Cotton
association plans We're put into force
and effect. which will result in the
creation IF warehouses in each and
every county in the state sufficient to
hold the cotton produced therein.
owned and controlled by the people OF
the county and operated the state and
federal warehouse act. There was also
organized q banking and export cor
poraton with a capital of S2,eoo,0oo to
assist the local banks in the financing
Of the cotton crop and to effect direct
sales of cotton both foreign and do
nestle, thus removing the middleman.
which means the saving Of tremen-
dous amount.
we need production. the world
needs to get busy. Old antiquated
methods must be relegated to the scrap
heap The producer must receive for
his product a price that will bring him
at least a fair profit. profit such as
he could make out of any other line
Of industry.
THE SOUTH Carolina assembly will be
netitioned TO create special cotton
commission to be composed of the
president and the executive committee
Of the association and an appropriation
of $4,000 will be asked to aid in the
work. It VIII be the duty of this cot
ton commission TO effect the sale OF
cotton both at home and abroad.
The plans for the warehousing OF
cotton and for the organization of the
banking. trust and export corporation
VIII revoIutionize the entire cotton in
lustry Of The state and bring untold
benefits 10 every line of industry in
b.