The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-12-13
COTTON BEARS
CAUGHT IN TRAP
Have Sold a Million Bales OF
Cotton That They Cannot
Deliver

Columbia. Dee 81 Skottowe
Wannarnaker, president of the Amer
ican Cotton Association, charges in Il
statement made public here TODAY
that contracts for around one million
bales Of short staple cotton sold last
spring for delivery this fall al from
% 10 2S cents pound remain un-
filled. He also charges that an enor-
NOUS amount Of cotton sold in New
York for fall delivery at even lower
prices. also remains undelivered.
Credit for the predicament in
which he says the Spectators find
themselves is claimed for the ..Ameri-
can Cotton Association by Mr. Wan
.lalnaker 1T is conceded he says
that as a. result of work done by
the American Cotton Association that
the price OF cotton is much higher
today than ii would have been had
the association not been formed. Here
,ofore the cotton crop has largely
been sold ,by the spectators before it
was produced. RI the process were
below the prices which cotton was
bringing in the fall Of the year. COM
tinations were formed and prices beat
down so that the spectators prac-
tfcally controlled the marker and the
life toll of the producer was =uscd as
4 football by the gambler.
Today as a result Of the work OF
the American Cotton Association this
condition mas been absolutely revers-
ed. The bear spectators find them
selves anable TO secure cotton TO fiji
their contracts. The. strength of the
cotton association was underestimate
ad oN them and as a result they. are
caught in trap and for the first time
in sixty years have found IL impos-
sfble to extricate themselves by beat
ing down the price. Of cotton. For the
first time the, cotton producer is post
ed. he is master Of the situation. He
realizes that paper COTTON. that is cot
ron sold on the New York Exchange
cannot be spun.
'.More warehouses have been built
in the South in the last five months
than at any time since the war be-
tween the State. The cotton prodnc-
en- after the war between the States
first produced cotton on credit, in the
way Of merchandise advanced TO him;
next he went step further and Sc
cured & small amount of cash from
the advance merchant nd all the
while was being urged to plant all the
cotton possible, rhis being all the
credit he had. Next he pushed to a
higher ground and succeeded in bor-
rowing small amount from the bank
Tor rhe making Of his crop and then
ne went one round higher and was
able to borrow money on his cotton
stored in the warehouse. Today he
must warehouse his cotton, arrange
Tor the financing OF il so that he will
hold control of his cotton. until il
reaches the hands OF the manufactur-
er, thus removing an army Of unneces-
sary middlen1en.
~Ai the meeting OF the South Caro-
lima Branch of the American Cotton
Association plans were put into force
and effect. which will result in the
erection Of warehouse in each and
ever, county OF, The State sufficient
10 hold the COTTON produced therein.
owned and controlled by the people.
Of the county and operated under the
state ana federal warehouse act.
There was also organized banking
and export corporation With eapi-
tai of. 50. 100000 to assist the local
banks in the financing of the cotton
crop and TO- effect direc, sales OF cot
ton both foreign and domestic. thus
removing The middlenan. which
means the saving OF q tremendous
amount
We need production. the world
needs to get busy. Old @ntipuAted
methods must be relegated TO the
scrap heap The producer must re-
ceive for his product Il price that Will
bring him al least Il fair profit. pro-
fit snch as he could make olst OF
any other line Of industry.
The South Carolina General AS
scrlblv will be petitioned 10 create
q speciai cotton commission 10 be
composed Of the president and the
executive committee OF the association
md an appropriation of $4,000 VIII
be asked 10 aid in the work. II VIII!
be the duty Of this cotton commission
TO effect the sale of cotton both at
home and abroad.
The plans for the warehousins OF
cotton and for the organization OF the
banking. trust and export corporation
will revoutionize the entire cotton
industry Of the State and bring untold
benefits to every line OF industry in the
entire state"