The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-11-22
Spectators Have Sold Cotton
For Delivery in Future at
Less Than Cost
BIG LOSSES STARING
THEM IN THE FACE
Law Of Supply and Demand Has
Been Ignored By New York
Cotton Gamblers

Will S!lSIf OIL luC NEW 1OIh SACItdIlSS
long before the next crop comes in
IN all probability during the early
spring that will prove extremely pain
lul to the shorts, a revelation to the
trade and will result in forcing COM
plete changes in the custom of handl-
ing cotton on the New York ex-
CHANGE says ]. Skottowe Wanna
maker, president Of the American
Cotton association in a statement is
Esued here yesterday.
THE. law Of supply and demand car
be temporarily sweot aside, dyna-
mited, bombed and ignored for a
short period. However, it is un-
changeable and will in the end assert
Itself. The law Of supply and de-
naand is a law Of nature over which
man can have no permanent, control.
To attempt to violate the laws Of ma
ture will bring suffering and disas-
Ter to the perpctrator in the end. The
laws of God grind slowly but exceed
;ngly 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
built upon sand. One of the first laws
Of safe business is to have excess for
drawing on additional supplies, either
set aside in the form of surplus or
otherwise, in the time of adversely.
The New York exchange members
| ~ IoJ t1,N M
port Of the special committees on
'l,rce separate occasions urging the
establishment of Southern Ware
houses of certifcation, are today fac
ing condition unheard Of in their
previous history but certain to follow
as result Of this action on their part.
Tie shorts who sold cotton they-did
not have felt sure that the usual GUS
tom would prevail and that those
who had to would deliver the cotton
upon the first scare and thus enable
hem to fill contracts. However, they
will realize when it 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 to
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
exchanges. When this cotton is de-
manded from whence will it come?
Cotton is p long growing plant and it
will be impossible to produce it until
the end of a full growing season; in
the meantime, what protection will
the shorts have? They are facing
an absolute certainty of reaping what
they have sown. They have sown the
wind and will reap the whiriwind. NO
longer will the wind. either in the
form Of hot air propaganda. or paper
pellets of the brain. dislodge and
force upon the market spot cotton.
''Under these conditions, before the
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 cot
ton was sold last summer early by di-
rect contract 70 Europe at far lower
prices and this cotton must be deliv-
cred. Certain firms in America sold
an enormous amount of cotton
through the New York exchange and
certain large Liverpool firms have
sold enormous amounts of. cotton in
like manner through the New York
! exchange. These sales have been.
! -,ostpcned and switched from time to
time However. this switching can not
continue idantinnitely. 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 un-
&C.. existing conditions SO as to fur
nish those who sold cotton they do
not possess in excess of the amount
in existence. this would be a means
of saving a part of their losses; still.
even this would not relieve the bears.
.'From the growing crop there is
not the remotest possibility OF a pro-
luction of over 100000 bales of good
white cotton. with total production
under 100000 900 bales; and. even
should the bears who will be forced
eventually to pay up their obligations
for the delivery Of cotton combine
and gather the cotton from the fur
tiiermost parts of the Garth. from
every section where it is grown
throughout the world; still, they
! ,vould be unable to extricate them
lives from their predicament. They
~auld be facing the greatest demand
cor raw cotton which has ever eX-
;.:ted in tho past GO years and would
tave terrific competition from the
,:.nnfacturing Interests from every
-action Of thu. world. who would be
'"moring fol. raw cotton realizing
'"t they would not have supply OF
ton to fill their pressing wants
from either the cotton on hand or
he growing crop. and that they would
y fang the ebsc!ute certainty CT