The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-07-23
Freedom For South
american Cotton Association
Outlines Plans-Will Benefit
Farmers

poor farmer and thus to make the
cotton market truly respond to the
law of supply and demand instead oi
being controlled by what is distress
cotton thrown on bad market be-
cause the owner is compelled to sci
mmedia teE, says statement issued
from the headquarters of the Ameri
can Cotton Association yesterday set
ting forth the purposes of the organi-
zation. The statement declares that
the association is working fo' the &C.
onomic freedom of the South.
american citizens outside of the
cotton belt, says the statement
should take live;y interest in the
American Cotton Association, an or
ganization now moving rapidly for
ward toward complete and perma-
nent form, and looking to the best
interests of the cotton producing
States OF the nation. There is no rea-
son whatever why American citizens
of all parts of the country should not
feel the most friendly interest in the
its ultimate success will react favor
ably upon all parts of the country.
The primary step being taken by
the association looks to organization
of the cotton interest for the South's S
benefit. This does not involve any
animosity Or hostility towards cotton
Interests in other parts of the nation.
All who know the history Of cotton
will readily admit that cotton has en-
riched all who have handled it except
the farmers who do the most grinding
and exhausted toll in the raising OF
the raw product. The reason for this
unreasonable state OF affairs is OBJ
yious. The farmers of the South have
never been sufficiently organized to
work in harmony for mutual benefit
Since the War Between the States
they have never had sufficient capital
aYallable to enable them to store
their cotton and hold it. for fair
price Muliitudes of poorer farmers
have been forced to sell their cotton
for whatever price it might bring as
soon as It could be gathered from the
field and ginned The low price for
which the poorer farmers were fore
ed to sell their cotton set the price
foratffe entire crop then. being offered
on The market. Had it been possible
to finance the portion Of the crop for
which immediate cash was needed, a
fair price for the entire crop could
have been obtained. The object OF
the American Cotton Association is,
simply to see to it that henceforth
capital shall be available for the
financing Of this portion of the crop,
and thus to make the cotton market
truly respond to the law Of supply and
demand instead of being controlled
by what is distress cotton thrown on
a bad market because the owner is
compelled to sell Immediately.
The association by financing this
portion Of the cotton crop will also
tend to end one Of the abuses of the
cotton exchange, the manipulation of
the market by those interested in art-
dciaIly depressing the price Of the cot
ton. When the producer who needs
cash for his cotton can get this cash
on easy terlls while holding his cot
ton in fire proof. insured. and weather
proof warehouses. he will simply re-
frain from selling when the cotton ex-
change is artificially manipulated so
as to drop the price Of cotton below
what the staple should naturally bring
as governed by the demand and by
the price of manufactured goods.
The legitimate interests Of thssc cot
tonxspinners of New Engip-8will in
no -waY-s.rffff th4eAtgh this interfer-
euce with. the activities of the ma
nipuIator on the cotton exchange. On
the contrary the legitimate interests
of the. New England spinner will be
lurthered by the stabilizing of the cot
ton market, which will save the spin
ner from violent fiuctuation. and en-
able him to calculate accurately and
purchase stocks quoted with some de-
gree of certainty as to future prices
of the commodity. The prices quoted
soH the cotton exchange will then be
come real indicators Of the state Of
the actual cotton market as governed
by supply and demand.
stThe American Cotton Association
is working for the economic freedom
of the South The economic servi-
tude Of one section Of the country can
not possibly be advantageous to the
legitimate business interests of any
other section. Only IN the progress
and prosperity of each section can all
Aee.ions permanently progress and
prosper. To the end that the produc-
er of cotton may share to the extent
of his deserts in the wealth that ac-
crues from the production Of raw and
manufactured cotton, this association
has under way the creation Of an ex-
porting financing corporation. under
the presidency of S. P. G.. Harding
formerly of the federal reserve bank
ing system, whose name furnishes
assurances of the soundness Of the
proposition for this export corpora
ton. The purpose of this organiza
tion is to see that Europe shall no
be prevented from purchasing Ameri
can cotton by reason of lack OF CAPT
tai. 1t will. therefore. serve equali!
the interests of the Southern farmel
and the European spinner and The
users of cotton products. The worl
Of the export corporation will large