The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-09-10
WAREHOUSES; FOR
THE COTTON CROP
Pressing Need of South is Great
Chain of Warehouses Con-
trolled by Local Men
WITHOUT THEM PRICE
CANNOT BE FIXED
Gov. Harding of Federal Reserve
Bank, Says South Must FL
nance and Market the Crop

maker. president OF the American
Cotton Association, has issued the fol-
lowing statement:
For many years intelligent and
unselfish leaders in the cotton move
lnent to protect the interest Of pro-
ducer, manufacturer and consumer
have recognized the absolute neces-
sity of a great chain of cotton ware
houses, locally owned and controlled
and operating under State laws,
throughout the South, where cotton
is produced and where it should be
marketed. BY this means alone can
the great staple be properly protect
ed against weather damage until 1t IS
sold direct to the manufacturer at
just price based on elemental eco
nomic laws. Thus Gov. r. G. Pleas
ant, of Louisiana. on July l, tele-
granhed to President Wannamaker
of the American Cotton Association
when the executive committee Of the
association was in session as follows:
.Be sure to push vigorously ques-
tion of building commodious ware
houes in every cotton county and
parish. There should be enacted by
general assemblies OF each State ade-
a,late legislation to this end. Farm
ers, merchants and bankers Of the
South must stick together to advance
legitimate cotton interests. Other
wise we are hopelessly in the hands
of the East and Great Britain, as
heretofore
Again, only recently Gov. W. p
G. Harding, of the Federal Reserve
Board. who, by virtue of his great
position. has the opportunity to view
our financial and econon,:c problems
from an impartial standpoint. wror
his conviction as to the warehousinG
and financing Of cotton in a>letter to
President Wannar2aker, as follows:
I am more; and more convinced
that if the South, desires to obtain a
fair price for cotton it should put It
self in position TO finance the mar
keting Of it both at home and abroad
Our people have for years been ac-
customed to financing the growing
crop. and of recent years they have
learned how to hold their cotton af-
ter it has been ginned and Ealed.
over a period Of temporary distress
They ought to SO one step further and
finance it until it gets into the hands
of the spinner
"Eeretoforc, however. unseliish
wise laborers for the common good in
strivingS to bring about this epoch
making Change in the handling and
marketing of cotton have been un-
able to effect the establishment OF
this great unhroken chain of cotton
warehouses locally owned and con-
trolled because there was lacking
necessary funds to build warehouses
ind to finance the cotton when stor-
ed to await the moat favorable sell
ing time direct TO the manufacturer
Hence. many farmers have been 1ln-
able TO hold their cotton at all and
have been forced to dump it on the
market at any price that might hap
pen to be offered on the day Of sale.
Many Of those who could hold were
finally forced to sell their cotton Of
ten badly weather damaged and AT
depressed prices brought about
through the sale Of distress cotton.
And the European spinner, because OF
our long standing waSteful method OF
handling cotton prior to its market
ing, requires up TO this day that all
his cotton shall be shipped subject to
foreign acceptance and port reclarna-
ton In this way the American pro-
ducer has through long years lost
enormous sums of money. That this
deplorable condition should continue
longer is unthinkablc.
Fortunately, the heretofore miss
ing link in the great plan properly
and adequately to warehouse and hold
cotton for just prices has now been
supplied by patriotic Southern bank
ers working in cooperation with the
great federal reserve board. These
bankers assisted by trade and bank
acceptance corporations created, by
them to help in the financing Of
warehouse cotton have now made it
possible for vhe producer to store
his cotton In these warehouses local
ly owned and operated and to secure
at a reasonable rate Of interest ample
loans on the cotton SO as to make no
longer necessary the disadvantaSeous
sale Of the cotton until the market
price justifles the sale. The full sig
nificance of this step Of the South
ern bankers and their trade and
bank acceptance corporations is rec
ognized by the leaders in the cot
! ton movement who are duly appre-
ciative Of this friendly cooperative
spirit Of bankers and business men
of the South in the struggle for mu-
tually beneficial reform in the handl-
ing Of cotton.
Such warehousing as that in op-
! Grafton in South Carolina and other
States of the South have given addi-
tional assistance in the long-fousht-
for reform.
'It is, therefore now possible fol
every cotton producing community
to have it's own warehouse in which