Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-11-25
BEARS ARE TREED
Wannamakef Outlines Cotton Situa.
ton.
TOTAL SUPPLY is MUCH over SOLD

Paper Prices do Not Amount to Much
If People Who Have Cotton Will
Warehouse Their Holdings and Wait
Until Spinners are Ready to Pay
Fair Values.
Conditions will exist on the New
York exchange long before the next
crop comes in. in all probability during
the early spring, that will prove eX-
tremely painful to the shorts, a reve-
lation to the trade and will result in
forcing complete changes in the GUS
tom of handling cotton on the New
York cotton exchange" says j.
Skottowe Wannamaker, president OF
the American Cotton association, in a
statement just issued.
"The law Of supply and demand
can be temporarily swept aside dy-
namited, bombed and ignored, how
ever, it is Interchangeable and will in
the end assert itself. The law Of sup
ply and demand is a law of nature
over which man can nave no perma-
nent control. To attempt to violate
the laws of nature will bring suffer-
ing and disaster to the perpetrator in
the end. The laws Of God grind
slowly but exceedingly fine.
ANY business operated without a
surplus disregards the first funda-
mental of safe, sound business and
when the storms arise, will certainly
realize that it's foundation has been
build upon sand. One of the first
laws of safe business is to have eX-
cess for drawing on additional sup
plies either set aside in the form OF
surplus or otherwise, in the time OF
adversely.
THE New York exchange having
disregarded the unanimous. report OF
the special committees on three sep
arate occasions urging the establish
ment of southern warehouses Of GER
tification, are today facing a. condl-
ton unheard Of in their previous his
tory but certain to follow as result
of this action on their part. The
shorts who sold cotton they did not
have, felt sure that the usual custom
would prevail and that those who had
to would deliver the cotton upon the
first scare and thus enable them to
fill contracts, however, they will real
ize when 1t is too late that they not
only sold something that they did not
have, but something that does not
exist.
To-day there is no commodity in
greater demand than cotton; the sup
ply will be absolutely inadequate for
the demand. If supply could be drawn
from paper cotton this condition
would not exist Far more cotton
than exists today has been sold by
direct sales and by contracts on the
exct anges. When this cotton is de-
manded from whence will it come?
Cotton is a long growing plant and
will be impossible to produce 1t
unit! the end of a full growing sea-
son; in the meantime, what protec-
ton will the shorts have? They are
facing an absolute certainty of reap
ing what they have sown. They have
sown the wind and viii. reap the
whirlwind. No longer will the wind,
either in the form of hot air pro-
paganda, or paper pellets OF the
brain, dislodge and force upon the
market spot cotton.
before
1920 crop reaches the market there
will be days that not a contract will
be for sale on the New York eX-
change. An enormous amount OF
cotton was sold early last summer by
direct contract to Europe at far lower
prices and this cotton must be dellV-
cred. Certain firms in America sold
an enormous amount Of cotton
through the New York exchange and
certain large Liverpool firms have
sold enormous amount OF cotton in
like manner through the New York
exchange These sales have been
postponed and switched from time to
time, however, this switching connot
continue indefinitely. Such switch
ing. on account of the enormous dis
count asked, adds to the losses. Even
were the spot holders so foolish as
to turn loose their spot cotton under
existing conditions, so as to furnish
those who sold cotton they do not
possess in excess Of the amount in
existence. this would be a means D1
saving a part Of their losses; still,
even this would not relieve the bears.
"I'rom the growing crop there is
not the rrmotCSt possibility Of 0fo-
duct!on of over 6,OOO,OO0 bales of good
white cotton, with total PROD uction un-
der 10000, 900 bales; and even should
the bears who will be forced even
tually to pay up their Obligations for
delivery OF cotton. combine and gather
the cotton from the furthermoSt parts
Of the earth, from every section where
it is grown throughout the world; still
they would be unable To eXtricate
themselves from their predicament.
They would be facing the greatest de-
mand for raw Gotten, which has ever
existed in the past GO years and would
have terrific connection from the