The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-11-08
COTTON EXPERT
PROPOSES PLAN
TO HOLD PRICE
American Cotton Association
Plans to Retire From Market
Two Million Bales of This
Years Crop.

| Columbia, Nov. t. Two million bales
good grade cotton from the present
crop will be retired from the market
/ by the American Cotton Association,
says a statement issued by J. Skot-
towe Wannamaker. president of the
association issued here today. The
plan adopted by the association is to
| transfer to designated banks, ware
house receipts for specified amounts
! of good grade cotton. This cotton is
to be held in trust until such time
as the association decides that prices
Justify the cotton being placed upon
the market.
Mr. Wannamaker declared that is
the unanimous decision of experts Of
the association that based upon sup
| ply and demand and the price of the
manufactured product that the price
| of cotton should be far above. present
prices and that the plan of retiring the
two million bales had beer hit upon
offering the best opportunity of sta
bilizing the price.
! The statement issued by Mr.. Wan
inamaker announcing the intention OF
THE association follows:
"The experts OF the American Cot
| ton Association after a careful in
Ivestigation of supply and demand, the
price of the manufactured product,
I and the price of other commodities,
have unanimously recommended that
the association retire two million bales
! of good grade cotton from the present
ent crop. The plans which were rec
commended and which have been
adopted call on the membership of
each state to voluntarily transfer to
, designated banks warehouse receipts
fov iod nf cy-a n q
cotton. This cotton is to be held in
trust until such time as the associa-
: tion decides that prices justify the
, cotton being placed upon the market.
1t is the unanimous decision of these
experts that based upon supply and
demand and the price of the manu-
| factured product that the price for
cotton should be far above present
prices and that by adopting this meth
cd the price of cotton will be stabil-
| lied at price something like the in
1 trinsic value based upon supply and
demand and the cost of production.
1t is also the unanimous decision Of
| these experts that on account of the
enormous demand for raw cotton and
the great shortage of same that. it will
not be necessary to carry this cotton
longer than the summer of 1920.
L
various sections of the belt show a
ready compliance on the part of the
membership of the association. Each
state is urged to report the amount of
cotton set aside under this arrange
ment to the president of the Ameri-
i can Cotton Association. The amount
of cotton already pledged indicates
| that this plan will not only be fully
lapproved but that an amount far in
Iexcess of the amount requested will
be taken entirely off of the market.
For the first time in one hundred
years the cotton producers have
evolved plans and made necessary
arrangements for handling their
product. carrying their surplus in such
q manner that cotton will sell for it's
/. intrinsic value that the cotton pro-
ducer will be placed in a position to
name the price for his product. Under
| this plan there is no possibility of the
| cotton being removed from the market
being placed back on the market until
!. the time agreed upon by the associa-
.tion. The various states show con-
siderable rivalry in their efforts to be
| the first to go over the top in the
amount of cotton to be set aside. It
is the intention of the association in
/ full years to carry surplus cotton into
/ lean years. However. an exception
will be made this year on account of
the great shortage. This matter was
being very quietly handled by the as
sociation and it was not the intention
Ito give out any information concern
| ing same However, in some way the
news leaked out and it is for this
reason that this statement is issued"